The Operating Profit Margin lets an investor know how operationally efficient a company is. This profitability also lends insight into a company’s pricing strategy and its level of success. A healthy operating margin is necessary for a company to pay off fixed costs after its variables have been covered. The higher the Operating Profit Margin, the better.
We ran a screen for stocks trading near their 52-Week Lows that had recently illustrated bullish trends by outperforming the S&P 500 over the last week. From this narrowed pool we then screened for companies that have strong 1-Year Fiscal Operating Profit Margins (X>20%).
The 1-Week Performance ranks the companies from highest to lowest:
1. Earthlink, Inc. (ELNK)
Sector | Communication Services |
Industry | Telecom Services |
Market Cap | $762M |
Beta | 0.82 |
The company provides integrated communication services. The company rose 0.71% in the last week. The company is 3.21% above its 52-Week Low. The company’s Operating Profit Margin is 25.99%. The short interest was 8.50% as of 08/15/2011.
2. PDL BioPharma, Inc. (PDLI)
Sector | Healthcare |
Industry | Biotechnology |
Market Cap | $795M |
Beta | 0.30 |
The company develops and sells innovative therapies that target life threatening illnesses. The company has risen 0.69% in the last week. The company is 22.10% above its 52-Week Low. The company’s Operating Profit Margin is 61.19%. The short interest was 12.70% as of 08/15/2011.
3. Diamond Offshore Drilling, Inc. (DO)
Sector | Energy |
Industry | Oil & Gas Drilling |
Market Cap | $8,572M |
Beta | 0.82 |
The company offers deep-sea contract drilling services all over the world. The company has risen 0.15% in the last week. The company is 9.33% above its 52-Week Low. The company’s Operating Profit Margin is 42.89%. The short interest was 16.30% as of 08/15/2011.
4. Exelon Corp. (EXC)
Sector | Utilities |
Industry | Utilities - Diversified |
Market Cap | $28,085M |
Beta | 0.61 |
The company operates as a utility holding company. The company has lost -0.54% in the last week. The company is 8.53% above its 52-Week Low. The company’s Operating Profit Margin is 25.35%. The short interest was 3.60% as of 08/15/2011.
5. Paychex, Inc. (PAYX)
Sector | Industrials |
Industry | Staffing & Outsourcing Services |
Market Cap | $9,390M |
Beta | 0.86 |
The company offers payroll, employee benefits outsourcing, and human resource services. The company has lost -0.54% in the last week. The company is 3.22% above its 52-Week Low. The company’s Operating Profit Margin is 37.73%. The short interest was N/A as of 08/15/2011.
6. PPL Corp. (PPL)
Sector | Utilities |
Industry | Utilities - Diversified |
Market Cap | $16,148M |
Beta | 0.44 |
The company operates as a utility holding company with a focus on the electricity markets within the US. The company has lost -0.84% in the last week. The company is 15.98% above its 52-Week Low. The company’s Operating Profit Margin is 21.90%. The short interest was 2.60% as of 08/15/2011.
7. Federated Investors, Inc. (FII)
Sector | Financial Services |
Industry | Asset Management |
Market Cap | $1,706M |
Beta | 0.90 |
The company offers investment management products and other financial services. The company has lost -0.85% in the last week. The company is 2.19% above its 52-Week Low. The company’s Operating Profit Margin is 32.31%. The short interest was 15.30% as of 08/15/2011. Given the high short interest this may be a short favorite or potentially a great short squeeze.
8. Greenhill & Co, Inc. (GHL)
Sector | Financial Services |
Industry | Capital Markets |
Market Cap | $934M |
Beta | 0.73 |
The company is an independent investment bank that offers a variety of services. The company has risen/lost -1.26% in the last week. The company is 3.05% above its 52-Week Low. The company’s Operating Profit Margin is 21.18%. The short interest was 22.40% as of 08/15/2011.
9. Verisk Analytics, Inc. (VRSK)
Sector | Industrials |
Industry | Business Services |
Market Cap | $5,511M |
Beta | N/A |
The company offers a variety of support software to various industries such as insurance and mortgage within the US. The company has lost -1.42% in the last week. The company is 23.67% above its 52-Week Low. The company’s Operating Profit Margin is 38.73%. The short interest was 1.00% as of 08/15/2011.
We hope this list helps as investors look for companies that may be turning around and hold high Operating Profit Margins.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
