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Zacks.com featured highlights include: Vertex Pharmaceuticals, PerkinElmer, Stanley Black & Decker, 3M and Arthur J. Gallagher & Co

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For Immediate Release

Chicago, IL – October 21, 2020 – Stocks in this week’s article are Vertex Pharmaceuticals Incorporated (VRTX - Free Report) , PerkinElmer, Inc. , Stanley Black & Decker, Inc. (SWK - Free Report) , 3M Company (MMM - Free Report) and Arthur J. Gallagher & Co. (AJG - Free Report) .

Bet on These 5 Top-Ranked Stocks with Strong Sales Growth

With the earnings season in full swing, investors often make decisions based on bottom-line performance, and fail to consider sales growth as a dependable metric when it comes to selecting stocks. However, betting on stocks based on such a perception may not prove worthwhile.

Sales growth is an important metric for any company, as it is a vital part of growth projections and instrumental in strategic decision making. By keeping an eye on this key metric over a significant period of time, one can clearly understand a company’s growth trend.

Sales growth is essential to justify the fixed and variable expenses incurred to operate a business. Low revenues lead to unprofitable business and hamper financials. Stagnant companies may garner near-term profit but can’t generate enough growth to attract new investors.

Also, in a growing economy, lack of sales rise usually indicates that the company is not gaining market share over its peers. In simple terms, some sustained sales growth is required to support the bottom line.

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. So, 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. A strong liquidity 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/1078787/bet-on-these-5-topranked-stocks-with-strong-sales-growth

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.

About Screen of the Week

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.

Strong Stocks that Should Be in the News

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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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