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Investors seek companies with high net profit margins for their efficiency in converting sales into profits. Four stocks with solid net profit margins are The Chefs' Warehouse, Perdoceo Education Corporation, Adtalem Global Education Inc., and Nomad Foods Limited. A higher net margin indicates a company's ability to retain profits after deducting costs and expenses, attracting investors and skilled employees, and providing a competitive edge. However, the metric has its limitations, such as varying across industries and being affected by accounting treatments and debt financing.

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