From Nasdaq: 2024-05-10 07:03:00

Creating a portfolio with high liquidity stocks is beneficial for investors seeking healthy returns. Liquidity measures a company’s ability to meet short-term debt obligations, making stocks with high liquidity levels desirable for potential maximum returns. Investors should also consider a company’s efficiency level alongside liquidity for better investment decisions. Factors to consider are the current ratio, quick ratio, and cash ratio, among others.

Identifying liquid stocks involves evaluating current assets relative to current liabilities, a company’s potential to meet short- and long-term debt obligations, and its asset utilization efficiency. Companies with higher asset utilization compared to their industries are considered efficient. To pick the best stocks, criteria like the current ratio between 1 and 3, asset utilization exceeding industry averages, and a Zacks Rank of #1 are essential.

Qualifying stocks from the screening include Netflix, Inc (NFLX), the streaming pioneer with a diverse content portfolio. Alphabet Inc (GOOGL) remains innovative with evolving business segments. Spotify Technology S.A. (SPOT) provides music streaming services with consistent growth. Vimeo, Inc (VMEO) offers video software solutions to a vast user base. These companies show growth potential and efficiency in their operations.

To begin your research on these stocks and others, try Zacks Investment Research’s Research Wizard. It helps with stock picking and back-testing strategies, providing valuable insights into potential investment opportunities. Disclosure: Zacks Investment Research may own or have sold securities mentioned in this article. Download a free report on the Bitcoin Profit Phenomenon for more investment insights. Get today’s recommendations from Zacks Investment Research for potential profitable stocks.



Read more at Nasdaq: 4 Top-Performing Liquid Stocks to Boost Portfolio Returns