For Immediate Release
Chicago, IL – June 30, 2026 – Stocks in this week’s article are Casey's General Stores CASY, Everus Construction Group Inc. ECG, Guardian Pharmacy Services Inc. GRDN, Expeditors International of Washington EXPD and Mama's Creations Inc. MAMA.
Bet on Winning DuPont Analysis & Pick These Top 5 Stocks
Return on equity (ROE) is one of the most favored metrics of investors. It is a profitability ratio that measures earnings generated by a company from its equity. Investors can follow the ROE trend in companies and compare this to historical or industry benchmarks to pick a winning stock.
However, stepping beyond the basic ROE and analyzing it at an advanced level could lead to even better returns. Here is where the DuPont analysis comes into play. It is an analytical method that examines three major elements – operating management, management of assets and the capital structure – related to the financial condition of a company. Below, we show how DuPont breaks down ROE into its different components:
ROE = Net Income/Equity
Net Income / Equity = (Net Income / Sales) * (Sales / Assets) * (Assets / Equity)
ROE = Profit Margin * Asset Turnover Ratio * Equity Multiplier
The screener yields winning stocks like Casey's General Stores, Everus Construction Group Inc., Guardian Pharmacy Services Inc., Expeditors International of Washington and Mama's Creations Inc..
Why Use DuPont?
Although one can't play down the importance of normal ROE calculation, the fact remains that it doesn't always provide a complete picture. The DuPont analysis, on the other hand, allows investors to assess the elements that play a dominant role in any change in ROE. It can help investors to segregate companies with higher margins from those having a high turnover. For example, high-end fashion brands generally survive on high margins as compared with retail goods, which rely on higher turnover.
In fact, it also sheds light on the company's leverage status, which can go a long way in selecting stocks poised for gains. A lofty ROE could be due to the overuse of debt. Thus, the strength of a company can be misleading if it has a high debt load.
So, an investor confined solely to an ROE perspective may be confused if he or she has to judge between two stocks with equal ratios. This is where DuPont analysis wins over and spots the better stock.
Investors can simply do this analysis by taking a look at the company's financials.However, looking at the financial statements of each company separately can be a tedious task. Screening tools like Zacks Research Wizard can come to your rescue and help you shortlist the stocks that look impressive with a DuPont analysis.
Here are five out of 11 stocks that made it through the screen:
Casey's General Stores: The Zacks Rank #1 company operates convenience stores primarily under the Casey's and Casey's General Store names in 19 states, mainly Iowa, Missouri and Illinois. You can see the complete list of today's Zacks #1 Rank stocks here.
The average earnings surprise of CASY for the past four quarters is 18.40%.
Everus Construction Group: The Zacks Rank #1 company is providing a full spectrum of construction services through its electrical and mechanical, and transmission and distribution specialty contracting services principally in the United States.
The average earnings surprise of ECG for the past four quarters is 61.97%.
Guardian Pharmacy Services:The Zacks Rank #2 company is a long-term care pharmacy services company that provides an extensive suite of technology-enabled services designed to help residents of long-term healthcare facilities.
The average earnings surprise of GRDN for the past four quarters is 16.65%.
Expeditors International of Washington: The Zacks Rank #1 company is a leading third-party logistics provider.
The average earnings surprise of EXPD for the past four quarters is 13.96%.
Mama's Creations: The Zacks Rank #2 company manufactures and distributes fresh deli-prepared foods sold through more than 12,000 grocery, mass, club and convenience stores across the United States.
The average earnings surprise of MAMA for the past four quarters is 129.17%.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2944321/bet-on-winning-dupont-analysis-pick-5-top-stocks
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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Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Mama's Creations, Inc. (MAMA) : Free Stock Analysis Report
Guardian Pharmacy Services, Inc. (GRDN) : Free Stock Analysis Report
Everus Construction Group, Inc. (ECG) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
