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Buy These 5 Stocks with Sales Growth for Robust Returns Now
Sales growth is an important metric for any company, as it is an essential part of growth projections and instrumental in strategic decision making. By observing this key metric over a period of time, one can clearly understand a company’s growth trend.
With regard to this, stocks like Crocs, Inc., Tapestry, Inc., Tesla, Inc., Cincinnati Financial Corp. and Cboe Global Markets are worth betting on.
Sales growth is crucial to justify the fixed and variable expenses incurred to operate a business. Lower revenues lead to an unprofitable business and disappointing financial performance. While stagnant companies may generate near-term profit, they need to show accelerated growth to attract new investors.
In an improving economy, a lack of sales growth most likely reflects that the company is not gaining market share over its competitors. In simple terms, some sustained sales growth is required to maintain profitability.
However, focusing exclusively on sales growth is not enough. 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.
A strong liquidity position and 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. Further, a sufficient cash position indicates that revenues are being channelized in the right direction.
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
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. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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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Zacks.com featured highlights include Crocs, Tapestry, Tesla, Cincinnati Financial and Cboe Global Markets
For Immediate Release
Chicago, IL – February 23, 2022 – Stocks in this week’s article are Crocs, Inc. (CROX - Free Report) , Tapestry, Inc. (TPR - Free Report) , Tesla, Inc. (TSLA - Free Report) , Cincinnati Financial Corp. (CINF - Free Report) and Cboe Global Markets (CBOE - Free Report) .
Buy These 5 Stocks with Sales Growth for Robust Returns Now
Sales growth is an important metric for any company, as it is an essential part of growth projections and instrumental in strategic decision making. By observing this key metric over a period of time, one can clearly understand a company’s growth trend.
With regard to this, stocks like Crocs, Inc., Tapestry, Inc., Tesla, Inc., Cincinnati Financial Corp. and Cboe Global Markets are worth betting on.
Sales growth is crucial to justify the fixed and variable expenses incurred to operate a business. Lower revenues lead to an unprofitable business and disappointing financial performance. While stagnant companies may generate near-term profit, they need to show accelerated growth to attract new investors.
In an improving economy, a lack of sales growth most likely reflects that the company is not gaining market share over its competitors. In simple terms, some sustained sales growth is required to maintain profitability.
However, focusing exclusively on sales growth is not enough. 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.
A strong liquidity position and 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. Further, 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/1871033/buy-these-5-stocks-with-sales-growth-for-robust-returns-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.
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
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. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Company: Zacks.com
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Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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.