For Immediate Release
Chicago, IL – November 9, 2020 – Stocks in this week’s article are Tapestry, Inc.
TPR
, Newmont Corporation
NEM
, Teradyne, Inc.
TER
, Aaron’s Holdings Company, Inc.
AAN
and PerkinElmer, Inc.
PKI
.
5 Top-Ranked Stocks with Solid Sales Growth to Bet On Now
Investors often undermine sales growth while picking stocks, as a company’s stock price is typically sensitive to its earnings momentum. However, earnings are quite vulnerable in the sense that books can be easily inflated. That’s why sales should always be considered.
Sales growth is actually an important indicator of a company’s health and ability to sustain its business. It provides investors insight into product demand and pricing power. The main advantage is that the sales figure is generally not manipulated and is less volatile compared to earnings.
Without some top-line growth, the bottom-line improvement may not be sustainable over the long term. While a company can show earnings strength by reducing expenses, a sustainable bottom-line recovery usually requires sales growth.
Focusing solely on sales growth is not enough though. A healthy sales growth rate is certainly a positive indicator for picking good stocks, but it does not ensure profits. Hence, taking into consideration a company’s cash position along with its sales number can prove to be a more dependable strategy.
Substantial cash on hand and a steady cash flow give a company more flexibility with respect to business decisions and potential investments. Cash also enables a company to endure market downturns. Most importantly, a sufficient cash position indicates that revenues are being channelized in the right direction.
For the rest of this Screen of the Week article please visit Zacks.com at:
https://www.zacks.com/stock/news/1098013/5-topranked-stocks-with-solid-sales-growth-to-bet-on-now
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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Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They’re virtually unknown to the general public. Yet today’s 220 Zacks Rank #1 “Strong Buys” were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit
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