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Zacks.com featured highlights include The Chef's Warehouse, Tecnoglass and Veritiv

For Immediate Release

Chicago, IL – September 15, 2022 – Stocks in this week’s article are The Chef's Warehouse CHEF, Tecnoglass TGLS and Veritiv VRTV.

3 Top Efficient Stocks to Strengthen Your Portfolio Returns

Efficiency level measures a company’s capability to transform available input into output and is often considered an important parameter for gauging a company’s potential to make profits. A company with a favorable efficiency level is expected to provide stellar returns as it is believed to be positively correlated with price performance.

However, at times it becomes difficult to measure the efficiency level of a company. This is why one must consider popular efficiency ratios while selecting stocks. These efficiency ratios are:

Asset Utilization: This ratio indicates a company’s capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.

Inventory Turnover: The ratio of 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company’s ability to maintain a suitable inventory position. While a high value indicates that the company has a relatively low level of inventory compared to COGS, a low value indicates that the company is facing declining sales, which have resulted in excess inventory.

Receivables Turnover:  This is the ratio of 12-month sales to four-quarter average receivables. It shows a company’s potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio or the “accounts receivable turnover ratio” or “debtor’s turnover ratio” is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.

Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company’s ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers.

Here are the top three stocks that made it through the screen:

The Chef's Warehouse is a distributor of specialty food products in the United States. The company is focused on serving the specific needs of chefs, who own or operate restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools and specialty food stores. Chef's Warehouse has an average four-quarter positive earnings surprise of 355.9%.

Tecnoglass is engaged in manufacturing and selling architectural glass and windows and aluminum products for the residential and commercial construction industries. Tecnoglass has an average four-quarter positive earnings surprise of 24.4%.

Veritiv engages in offering North American business-to-business distribution solutions. Veritiv has an average four-quarter positive earnings surprise of nearly 37%.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1980306/3-top-efficient-stocks-to-strengthen-your-portfolio-returns

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report
 
Veritiv Corporation (VRTV): Free Stock Analysis Report
 
Tecnoglass Inc. (TGLS): Free Stock Analysis Report
 
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