| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $48.93 | 1.23B | 3.15 | 0.49% | Communication Services | 1,820 | 20 hours ago | |||
| $2.84 | 104.75M | 1.44 | 0.00% | Technology | 891 | 20 hours ago | |||
 146311 CALL | $0.0000 | 0.0000 | 0.00 | 0.00% | 0 | 6 years ago | |||
 280585 AHS | $0.0000 | 0.0000 | 0.00 | 0.00% | 0 | 6 years ago | |||
 162910 ICA | $0.0000 | 0.0000 | 0.00 | 0.00% | 0 | 6 years ago |
There’s a reason why Operating Margin Growth is often hailed as the lifeblood of stock market success. It provides a clear signal of a company’s efficiency in managing its operations and converting revenue into profit. In today’s analysis, we shine a spotlight on five stocks that excel in this fundamental category, as identified by our trusted Portfolio Grader tool. If you’re on the hunt for investment opportunities that offer robust profitability and operational efficiency, these are the stocks you shouldn’t miss.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace
IDT Corp. (NYSE: IDT)
Overview
IDT Corp is a mainstay in the telecommunications sector, providing retail and wholesale services, such as pre-paid and rechargeable calling cards, along with wholesale carrier services. This New Jersey-based company has carved out a substantial niche in a competitive market.
Why It’s a Good Investment
- Operating Margin Growth: Demonstrating outstanding operating margin growth, IDT stands out for its efficient management and streamlined operations. This metric alone suggests superior profit conversion from core activities.
- Additional Metrics: But the good news doesn’t stop there. IDT also earns an “A” in both Earnings Momentum and Cash Flow, indicating sustained earnings growth paired with impeccable liquidity.
- Performance: The stock’s performance this year has been nothing short of remarkable. Since January 1, IDT has surged 87.5%, significantly outpacing the S&P 500’s modest increase of 12.8%.
- Valuation: Currently, the stock is trading at a trailing P/E ratio of just 6.40. Considering its growth potential, this valuation presents an enticing opportunity for investors.
Analyst Ratings and Forecasts:
| Category | Rating/Value |
|---|---|
| Consensus Rating | Hold |
| Average Price Target | $24.50 |
| Potential Gain | 14.1% |
| Number of Ratings | 4 |
Summary of Analysts’ Outlook:
Analysts have a mixed outlook on IDT Corporation, with a consensus rating of “Hold”. While some analysts see potential for growth, others are more cautious due to concerns about the company’s debt levels and competitive pressures in the telecom industry. Overall, the average price target suggests a modest upside from current levels.
For more information, get Portfolio Grader’s complete analysis of IDT stock.
MagnaChip Semiconductor (NYSE: MX)
Overview
MagnaChip Semiconductor concentrates on the development and manufacture of mixed-signal and digital multimedia semiconductors. This South Korean firm plays a pivotal role in the tech sector, offering innovative solutions that power modern electronics.
Why It’s a Good Investment
- Operating Margin Growth: MagnaChip showcases strong operating margins, which points to its adeptness at maximizing profit in a highly competitive tech market.
- Additional Metrics: With top grades in Earnings Momentum, Analyst Earnings Revisions, Equity, and Cash Flow, the company’s financial metrics reflect a solid foundation.
- Valuation: Currently boasting a trailing P/E ratio of 3.70, MagnaChip is incredibly undervalued, making it an attractive pick for those looking to capitalize on market inefficiencies.
Analyst Ratings and Forecasts:
| Category | Rating/Value |
|---|---|
| Consensus Rating | Buy (1.8/5) |
| Average Price Target | $14.50 |
| Potential Gain | 34.1% |
| Number of Ratings | 5 |
Summary of Analysts’ Outlook:
Analysts have a positive outlook on MagnaChip Semiconductor Corporation, with a consensus rating of Buy and an average price target of $14.50, indicating a potential gain of 34.1% from the current price. This suggests that analysts believe the stock has upside potential and is a good investment opportunity.
For more information, get Portfolio Grader’s complete analysis of MX stock.
magicJack (NASDAQ: CALL)
Overview
magicJack VocalTec Ltd offers voice-over-Internet-protocol (VoIP) services over various platforms, adapting to the rising demand for digital communication solutions. The company has positioned itself as a leader in this burgeoning sector.
Why It’s a Good Investment
- Operating Margin Growth: Driving high operating margins, magicJack exemplifies cost management excellence and effective service delivery.
- Additional Metrics: The stock is also rated highly in Earnings Momentum, Earnings Surprises, Cash Flow, and Sales Growth, further underlining its robust financial health.
- Valuation: With a trailing P/E ratio of 6.00, the stock remains relatively affordable, given its growth metrics.
Analyst Ratings and Forecasts:
| Category | Rating/Value |
|---|---|
| Consensus Rating | Hold |
| Average Price Target | $17.50 |
| Potential Gain | 21.1% |
| Number of Ratings | 4 |
Summary of Analysts’ Outlook:
Analysts have a neutral outlook on magicJack VocalTec Ltd., with a consensus rating of “Hold”. The average price target of $17.50 suggests a potential gain of 21.1% from the current price. While there are some positive ratings, the overall sentiment is cautious, reflecting the company’s challenges in the competitive VoIP industry.
For more information, get Portfolio Grader’s complete analysis of CALL stock.
AMN Healthcare (NYSE: AHS)
Overview
AMN Healthcare Services focuses on recruiting healthcare professionals for both temporary and permanent roles across the United States. As healthcare continues to be a critical sector, AMN fills an essential need in the market.
Why It’s a Good Investment
- Operating Margin Growth: Showcasing robust margins, AMN Healthcare signifies effective management and a high demand for staffing services in healthcare.
- Additional Metrics: The company also garners “A” ratings in Earnings Growth, Earnings Momentum, Analyst Earnings Revisions, and Earnings Surprises, marking it as a consistent performer.
- Relevance: In an era where healthcare is paramount, AMN’s pivotal role positions it as a fundamental player in the industry.
Analyst Ratings and Forecasts:
| Category | Rating/Value |
|---|---|
| Consensus Rating | Overweight |
| Average Price Target | $84.50 |
| Potential Gain | 14.1% |
| Number of Ratings | 11 |
Summary of Analysts’ Outlook:
Analysts have a positive outlook on AMN Healthcare, with a consensus rating of Overweight. The average price target suggests a potential gain of 14.1% from the current price. Most analysts believe the company’s strong financial performance, driven by its diversified portfolio of healthcare staffing services and its efforts to reduce costs and improve operational efficiency, will continue to drive growth.
For more information, get Portfolio Grader’s complete analysis of AHS stock.
Empresas ICA S.A.B. de C.V. (NYSE: ICA)
Overview
Empresas ICA offers comprehensive engineering and construction services. Operating in a space poised for significant infrastructure development, this Mexican company is well-positioned to capitalize on growing demand.
Why It’s a Good Investment
- Operating Margin Growth: High operating margins demonstrate Empresas ICA’s competency in maintaining streamlined operations and profitability in a capital-intensive industry.
- Additional Metrics: The company scores high marks in Earnings Momentum, Analyst Earnings Revisions, and Sales Growth, all of which indicate a strong upward trajectory.
- Valuation: With a trailing P/E ratio of 3.30, the stock is something of a hidden gem, offering immense upside potential at a bargain price.
Analyst Ratings and Forecasts:
| Category | Rating/Value |
|---|---|
| Consensus Rating | Hold |
| Average Price Target | MXN 44.14 (approximately USD 2.20) |
| Potential Gain | 14.1% |
| Number of Ratings | 7 |
Summary of Analysts’ Outlook:
Analysts have a mixed outlook on Empresas ICA, with a consensus rating of “Hold”. The average price target suggests a potential gain of 14.1% from the current price. While some analysts see value in the company’s infrastructure projects and diversification efforts, others are concerned about the impact of economic uncertainties and the company’s debt levels.
For more information, get Portfolio Grader’s complete analysis of ICA stock.
Investing in companies with exceptional operating margin growth can yield bountiful returns, thanks to their operational efficiency and profitability. The five stocks featured here—IDT Corp, MagnaChip Semiconductor, magicJack, AMN Healthcare, and Empresas ICA—not only lead the pack in this vital metric but also exhibit strength across other critical areas. With impressive performance records, compelling valuations, and stellar market positioning, these stocks are prime candidates for any intelligent investor’s portfolio.
