Zacks.com spotlighted selections feature Flexsteel Industries, Proto Labs, TechnipFMC, and Telefonica Brasil
Press Announcement
Chicago, IL – February 26, 2026 – This week’s featured stocks include Flexsteel Industries (FLXS) (-0.76%), Proto Labs (PRLB) (+0.39%), TechnipFMC (FTI) (-0.73%), and Telefonica Brasil (VIV) (-0.58%).
Four Standout Stocks Surpassing Industry Peers in Profitability Metrics
Efficiency is a key indicator of how well a company turns resources into revenue, often serving as a predictor of strong financial performance. Firms that excel in efficiency are typically positioned to deliver impressive returns, as there is a positive link between efficiency and stock price movement.
Assessing a company’s efficiency can sometimes be challenging. To simplify the process, investors often rely on several widely recognized efficiency ratios when evaluating stocks.
The following companies—Flexsteel Industries, Proto Labs, TechnipFMC, and Telefonica Brasil—have been identified through this screening process:
Key Efficiency Ratios Considered
- Receivables Turnover: This ratio compares annual sales to the average receivables over four quarters, indicating how effectively a company extends credit and collects payments. A higher ratio suggests efficient collection and a strong customer base.
- Asset Utilization: Calculated by dividing total sales over the past year by the average total assets for the same period, this metric reflects how well a company uses its assets to generate revenue. Higher values point to greater operational efficiency.
- Inventory Turnover: This ratio measures the cost of goods sold over twelve months against average inventory levels, highlighting how well a company manages its stock. High turnover suggests lean inventory relative to sales, while low turnover can indicate sluggish sales and excess inventory.
- Operating Margin: This ratio, which divides operating income by sales over the past year, shows how effectively a company controls its operating costs. A higher margin means better expense management compared to competitors.
Top Four Stocks from the Efficiency Screen
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Flexsteel Industries
Specializing in the design, production, and sale of quality upholstered furniture for homes, businesses, and recreational vehicles, FLXS has posted an average earnings surprise of 53.10% over the past four quarters. -
Proto Labs
As a digital manufacturer offering rapid prototyping and short-run custom parts, PRLB has achieved an average four-quarter earnings surprise of 22.1%. -
TechnipFMC
This company delivers products, services, and integrated technology solutions for the energy sector. FTI has recorded an average earnings surprise of 15.9% over the last four quarters. -
Telefonica Brasil
Operating in the telecommunications industry in Sao Paulo, VIV has averaged a 7.7% earnings surprise over the past year.
About Screen of the Week
Zacks.com pioneered online stock screening and has been recognized by Money Magazine as the top site for this service. The Screen of the Week series was created to showcase actionable stock-picking strategies for investors.
Noteworthy Stocks You Might Have Missed
Many high-performing stocks receive little attention and remain largely unknown. Zacks’ proprietary stock-picking system, which has outperformed the market since 1988 with an average annual gain of +25%, currently identifies 220 “Strong Buys.”
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Contact Information
- Contact: Jim Giaquinto
- Company: Zacks.com
- Phone: 312-265-9268
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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