雅虎香港財經 13 Best Money Making Stocks to Buy Now
In this piece, we will take a look at the 13 best money making stocks to buy now. For more stocks, head on over to 5 Best Money Making Stocks to Buy Now.
As they say, money makes the world go around, and nowhere else is this truer than in the business world. After all, businesses exist for the main reason of earning revenue and making profit, and investors invest in them only due to the chance of growing their money. Since there are thousands of stocks that are traded daily on public markets, sifting out the right ones is often a daunting task, due to the complex accounting nature of recording the cash inflows and outflows from a firm.
On this front, the field of financial analysis provides us with several methods to look 'under the hood' of a firm a.k.a. its financial reports. These reports are made up of the balance sheet, the income statement, and the statement of cash flows. Each of these explain different areas of a firm's finances. The balance sheet lists its properties, assets, investments, and liabilities and provides a longer-term picture. In comparison, the cash flow and income statements are periodic documents that show how, why, and where the money flowed in and out of a firm.
Combining the information present in these lets investors and analysts decide whether a firm is worth the buck that's being put into it. One metric that's a favorite among many is the free cash flow (FCF). This is the amount left with the firm to distribute to investors after all its expenses are accounted for. However, the FCF is different from the net income, or profit, since it adds back non cash expenses such as depreciation, and the FCF is the actual amount that is reconciled with the firm's cash on hand account in the balance sheet.
Another widely popular metric used to gauge a firm's money generation capabilities is the return on equity, or ROE. This simply divides a firm's net income with its total shareholder equity, to determine how much return in percentage terms the equity investment is generating. It provides investors with a simple calculation to see if their investments are making any money, and even though the net income isn't directly paid out to the shareholder, a higher income leads to a growth in share price which then creates money for the equity investors. Out of the different industry sectors out there, the highest one in terms of ROE is the computer industry, with the latest reading of 96% according to NYU Stern's Aswath Damodaran.
Today, we'll take a look at some top money making stocks, with the outperformers being Apple Inc. (NASDAQ:AAPL), Waters Corporation (NYSE:WAT), and Marriott International, Inc. (NASDAQ:MAR).
Photo by Christian Dubovan on Unsplash
Our Methodology
We used return on equity (ROE) to select which stocks are making money right now, but since ROE alone tends to muddle things up if firms are using debt to fuel growth, the list was filtered using return on investment as well. Companies with ROE greater than 30% and ROI greater than 25% were chosen, and those with the highest ROE are listed below. All ROE figures are sourced from Morningstar.
13 Best Money Making Stocks to Buy Now
13. MV Oil Trust (NYSE:MVO)
ROE as of February 26, 2023: 281.66%
Number of Hedge Fund Holders in Q4 2022: 1
MV Oil Trust (NYSE:MVO) is a trust company that is headquartered in Houston, Texas. The firm has close to nine hundred different properties in which it holds net profit interests. These are located in Kansas and Colorado. MV Oil Trust (NYSE:MVO) is headquartered in Houston, Texas.
MV Oil Trust (NYSE:MVO)'s sole investor in our database is Ken Griffin's Citadel Investment Group which owns 18,721 shares that are worth $305,714.
Apple Inc. (NASDAQ:AAPL), MV Oil Trust (NYSE:MVO), Marriott International, Inc. (NASDAQ:MAR) and Waters Corporation (NYSE:WAT) are some great money making stocks.
12. Cross Timbers Royalty Trust (NYSE:CRT)
ROE as of February 26, 2023: 338.40%
Number of Hedge Fund Holders in Q4 2022: 1
Cross Timbers Royalty Trust (NYSE:CRT) is an American energy trust headquartered in Dallas, Texas. The firm holds profit interests in working and other properties in Texas, New Mexico, and Oklahoma.
Cross Timbers Royalty Trust (NYSE:CRT)'s interests enable it to be entitled to up to 90% of net profits from several of its properties, and up to 75% of net profits from interests in others. Insider Monkey's Q4 2022 survey of 943 hedge funds revealed that one had bought the firm's shares. This investor is Ken Griffin's Citadel Investment Group which owns 14,286 shares that are worth $363,436.
11. Jiayin Group Inc. (NASDAQ:JFIN)
ROE as of February 26, 2023: 259%
Number of Hedge Fund Holders in Q4 2022: 2
Jiayin Group Inc. (NASDAQ:JFIN) is a Chinese financial technology firm. It operates an online platform that enables customers to offer and avail and offer lending services by letting financial institutions link up with their customers. The company is headquartered in Shanghai, China.
Jiayin Group Inc. (NASDAQ:JFIN) is one of the faster growing companies out there, as its quarterly sales have grown by a massive 55% annually. At the same time, the firm's return on equity sits at 239%, implying that a single dollar invested in the firm is able to make a stunning $239. By the end of last year's third quarter, two of the 943 hedge funds part of Insider Monkey's study had held a stake in the firm.
Jiayin Group Inc. (NASDAQ:JFIN)'s largest shareholder in our database is Jim Simons' Renaissance Technologies which owns 21,896 shares that are worth $50,000.
10. vTv Therapeutics Inc. (NASDAQ:VTVT)
ROE as of February 26, 2023: 190.91%
Number of Hedge Fund Holders in Q4 2022: 3
vTv Therapeutics Inc. (NASDAQ:VTVT) is a biotechnology company that develops diabetes treatments. The firm was set up in 2015 and is headquartered in High Point, North Carolina.
vTv Therapeutics Inc. (NASDAQ:VTVT) is currently shaking up things at its top management, as the firm has appointed a new general counsel and a new chief financial officer within the past three months. By Q4 of 2022 end, three of the 943 hedge funds polled by Insider Monkey had held a stake in the firm.
Out of these, Srini Akkaraju and Michael Dybbs's Samsara BioCapital is vTv Therapeutics Inc. (NASDAQ:VTVT)'s largest shareholder. It owns 1.6 million shares that are worth $1 million.
9. Battalion Oil Corporation (NYSE:BATL)
ROE as of February 26, 2023: 187.39%
Number of Hedge Fund Holders in Q4 2022: 5
Battalion Oil Corporation (NYSE:BATL) is an upstream oil and gas company that explores and produces oil and gas in Texas. The firm was set up in 1987 and it is headquartered in Houston, Texas.
Battalion Oil Corporation (NYSE:BATL)'s third quarter of 2022 saw the firm grow its average daily production by 8% alongside growth in adjusted operating income of 35%. As part of their fourth quarter of 2022 investments, five of the 943 hedge funds polled by Insider Monkey had bought the firm's shares.
Battalion Oil Corporation (NYSE:BATL)'s largest investor is Jonathan Barrett and Paul Segal's Luminus Management which owns 6.1 million shares that are worth $59 million.
8. Acer Therapeutics Inc. (NASDAQ:ACER)
ROE as of February 26, 2023: 254.55%
Number of Hedge Fund Holders in Q4 2022: 5
Acer Therapeutics Inc. (NASDAQ:ACER) is a biotechnology firm that was set up in 1991 and is headquartered in Newton, Massachusetts. The firm develops treatments for complex medical issues such as metabolism and urine diseases in newborns, collagen mutations, and the coronavirus.
Acer Therapeutics Inc. (NASDAQ:ACER) announced in February 2023 that its trial for a drug aiming to treat complications resulting from menopause has achieved full enrollment. As 2022's December quarter ended, five of the 943 hedge funds polled by Insider Monkey had owned the company's shares.
7. Sabine Royalty Trust (NYSE:SBR)
ROE as of February 26, 2023: 937.40%
Number of Hedge Fund Holders in Q4 2022: 5
Sabine Royalty Trust (NYSE:SBR) is a diversified energy trust that holds interests in mineral and oil producing properties. These include production payments, landowner's royalty, mineral payments, and other interests in several U.S. states including Florida and Texas. Sabine Royalty Trust (NYSE:SBR) is headquartered in Dallas, Texas.
Rolling in money, Sabine Royalty Trust (NYSE:SBR) announced in February 2023 that it is 63.73 cents of cash per unit. Five of the 943 hedge funds polled by Insider Monkey had bought the firm's shares in Q4 2022.
Chuck Royce's Royce & Associates is Sabine Royalty Trust (NYSE:SBR)'s largest investor through a $4.5 million stake that comes via 52,948 shares.
6. Insperity, Inc. (NYSE:NSP)
ROE as of February 26, 2023: 451.19%
Number of Hedge Fund Holders in Q4 2022: 21
Insperity, Inc. (NYSE:NSP) is a human resources company headquartered in Kingswood, Texas. The firm provides products and solutions that let businesses manage their payroll, compensation, compliance, training, and performance management.
Insperity, Inc. (NYSE:NSP) wooed investors in February 2023 as it announced a 52 cent quarterly cash dividend payable to investors on record as of March 10, 2023. By the end of December 2022, 21 of the 943 hedge funds polled by Insider Monkey had bought the firm's shares.
Insperity, Inc. (NYSE:NSP)'s largest investor in our database is Anthony Bozza's Lakewood Capital Management which owns 338,063 shares that are worth $38 million.
Along with Marriott International, Inc. (NASDAQ:MAR), Apple Inc. (NASDAQ:AAPL), and Waters Corporation (NYSE:WAT), Insperity, Inc. (NYSE:NSP) is a big money making stock..
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Disclosure: None. 13 Best Money Making Stocks to Buy Now is originally published on Insider Monkey.
