Zacks.com featured highlights include PC Connection, Everus Construction, Blue Bird, Expeditors International of Washington and Valero Energy

For Immediate Release

Chicago, IL – August 14, 2026 – Stocks in this week’s article are PC Connection CNXN, Everus Construction Group Inc. ECG, Blue Bird BLBD, Expeditors International of Washington EXPD and Valero Energy VLO.

Use DuPont Analysis to Pick 5 Top-Ranked Quality Stocks

With Middle East tensions still posing a threat to the Wall Street rally from time to time and the U.S. labor market weakening, concerns about an economic slowdown are often resurfacing. Hence, quality picks are necessary at this level.

In this regard, 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, which 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 PC Connection, Everus Construction Group Inc., Blue Bird, Expeditors International of Washington and Valero Energy.

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 having higher margins from those having high turnover. For example, high-end fashion brands generally survive on high margin 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 of equal ratio. 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 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 eight stocks that made it through the screen:

PC Connection: The Zacks Rank #1 company is a direct marketer of brand-name personal computers and related peripherals, software and networking products to business, education, government, and consumer end users located primarily in the United States. You can see the complete list of today’s Zacks #1 Rank stocks here.

The average earnings surprise of CNXN for the past four quarters is 13.00%.

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 57.03%.

Blue Bird: The Zacks Rank #2 company is engaged in the designing, engineering, manufacturing and sale of school buses and related parts.

The average earnings surprise of BLBD for the past four quarters is 22.37%.

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 17.15%.

Valero Energy: The Zacks Rank #2 company is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products.

The average earnings surprise of VLO for the past four quarters is 26.8%.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2974316/use-dupont-analysis-to-pick-5-top-ranked-quality-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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Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

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