The sign of effective management is shown by a factor called Return on Assets or ROA. The ROA shows how profitable the company’s assets are at creating profit. In other words, one can see how many dollars of earning come out of every dollar of assets that the organization’s management controls.
ROA is best noted when it is compared to other companies in the same industry. Three stocks which seem to show efeective management at the moment are Pilgrim’s Price Corporation (NASDAQ:PPC), Wingstop Inc (NASDAQ:WING), and Home Depot Inc (NYSE:HD).
For Pilgrim’s Price Corporation (NASDAQ:PPC), its return of assets has been maintained over the past year at a higher price than the industry average; its ROA is 27.43% higher. The industry average is only 6.13%. As for its stock, it is down -2.43%, typically going between $22.03 and $22.57.
The second stock for consideration is the Wingstop Inc (NASDAQ:WING), which has kept its ROA steady over the last 12 months, with a 24.90% average. That number is higher than the industry average, which stands at 5.79%. As for the best level of the sector, that is at 7.60%. During last session, its shares volume was down by average volume; it was at 144,853 shares traded, while the average shares volume was at 361,758.
The third stock to mention here is Home Depot Inc (NYSE:HD), which has kept a return on assets of 15.37% over the previous 12 months or one year. That number is higher than the 4.99% industry average. This stock had a rise of +0.08% to the close price of $117.69. The range over the past 52 weeks has been between $82.50 and $118.53.
These three stocks are ones to note for their return on investment numbers, as shown in above in percentages, as compared to the industry averages.