We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Solid Sales Growth Makes These 5 Stocks Worth Betting On
Investors often fail to consider sales growth as a dependable metric when it comes to selecting stocks. This might be because of their preconceived notion that a company's stock price is typically sensitive to its earnings momentum. However, betting on stocks completely depending on such a perception may not prove worthwhile.
It's worth keeping in mind that in cases when companies incur any loss, albeit transitorily, they are valued on their revenues, not earnings, as top-line growth (or decline) is usually an indicator of a company's future earnings performance. In this regard, stocks like News Corp., Commercial Metals Co., Lennar Corp., Lithia Motors, Inc., and Comstock Resources, Inc. are worth considering.
In contrast with price to earnings and price to book value ratios, which can turn negative and cease to be relevant, the price-to-sales (P/S) ratio is available even for firms that have hit choppy waters. A company can improve earnings by resorting to cost control measures while maintaining stable revenues. However, superior profits could only be achieved through sustained revenue growth.
Yet, a huge sales number does not necessarily convert into profits. So, considering a company's cash position along with its sales number can prove to be more prudent. Substantial cash in hand and a steady cash flow lend a company more flexibility with respect to business decisions and investments.
Here are five of the 20 stocks that qualified the screening:
New York-based News Corporation is a global, diversified media and information services company. NWSA comprises businesses across a range of media – Digital Real Estate Services, Subscription Video Services, Book Publishing, Dow Jones and News Media,
News Corporation's expected sales growth rate for fiscal 2022 is 7.9%. The stock currently sports a Zacks Rank #1.
Irving, TX-based Commercial Metals manufactures, recycles and markets steel and metal products, related materials and services. CMC provides these through a network of facilities that includes eight electric arc furnace (EAF) mini mills, two EAF micro mills, a rerolling mill, steel fabrication and processing plants, construction-related product warehouses and metal recycling facilities in the United States and Poland.
Commercial Metals' sales are expected to increase 24.5% for fiscal 2022. The stock sports a Zacks Rank #1 at present.
Based in Miami, FL, Lennar is engaged in homebuilding and financial services in the United States. LEN's reportable segments consist of Homebuilding, Lennar Financial Services, Rialto and Lennar Multifamily.
Lennar's expected sales growth for fiscal 2022 is 25.7%. The company, at present, carries a Zacks Rank #2.
Lithia Motors, based in Medford, OR, is one of the leading automotive retailers of new and used vehicles and related services in the United States. LAD offers 40 vehicle brands across 278 stores in 22 states within the United States and three Canadian provinces.
Lithia Motors' expected sales growth rate for 2022 is 15.6%. The stock carries a Zacks Rank #2 at present.
Frisco, TX-basedComstock Resources is an independent energy company. CRK is engaged in the acquisition, exploration, development and production of oil and natural gas, primarily in North Louisiana and East Texas.
Comstock Resources' expected sales growth rate for 2022 is 3.1%. The stock carries a Zacks Rank #2 currently.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks.com featured highlights include News Corp, Commercial Metals, Lennar, Lithia Motors, and Comstock Resources
For Immediate Release
Chicago, IL – April 11, 2022 – Stocks in this week’s article are News Corp. (NWSA - Free Report) , Commercial Metals Co. (CMC - Free Report) , Lennar Corp. (LEN - Free Report) , Lithia Motors, Inc. (LAD - Free Report) and Comstock Resources, Inc. (CRK - Free Report)
Solid Sales Growth Makes These 5 Stocks Worth Betting On
Investors often fail to consider sales growth as a dependable metric when it comes to selecting stocks. This might be because of their preconceived notion that a company's stock price is typically sensitive to its earnings momentum. However, betting on stocks completely depending on such a perception may not prove worthwhile.
It's worth keeping in mind that in cases when companies incur any loss, albeit transitorily, they are valued on their revenues, not earnings, as top-line growth (or decline) is usually an indicator of a company's future earnings performance. In this regard, stocks like News Corp., Commercial Metals Co., Lennar Corp., Lithia Motors, Inc., and Comstock Resources, Inc. are worth considering.
In contrast with price to earnings and price to book value ratios, which can turn negative and cease to be relevant, the price-to-sales (P/S) ratio is available even for firms that have hit choppy waters. A company can improve earnings by resorting to cost control measures while maintaining stable revenues. However, superior profits could only be achieved through sustained revenue growth.
Yet, a huge sales number does not necessarily convert into profits. So, considering a company's cash position along with its sales number can prove to be more prudent. Substantial cash in hand and a steady cash flow lend a company more flexibility with respect to business decisions and investments.
Here are five of the 20 stocks that qualified the screening:
New York-based News Corporation is a global, diversified media and information services company. NWSA comprises businesses across a range of media – Digital Real Estate Services, Subscription Video Services, Book Publishing, Dow Jones and News Media,
News Corporation's expected sales growth rate for fiscal 2022 is 7.9%. The stock currently sports a Zacks Rank #1.
Irving, TX-based Commercial Metals manufactures, recycles and markets steel and metal products, related materials and services. CMC provides these through a network of facilities that includes eight electric arc furnace (EAF) mini mills, two EAF micro mills, a rerolling mill, steel fabrication and processing plants, construction-related product warehouses and metal recycling facilities in the United States and Poland.
Commercial Metals' sales are expected to increase 24.5% for fiscal 2022. The stock sports a Zacks Rank #1 at present.
Based in Miami, FL, Lennar is engaged in homebuilding and financial services in the United States. LEN's reportable segments consist of Homebuilding, Lennar Financial Services, Rialto and Lennar Multifamily.
Lennar's expected sales growth for fiscal 2022 is 25.7%. The company, at present, carries a Zacks Rank #2.
Lithia Motors, based in Medford, OR, is one of the leading automotive retailers of new and used vehicles and related services in the United States. LAD offers 40 vehicle brands across 278 stores in 22 states within the United States and three Canadian provinces.
Lithia Motors' expected sales growth rate for 2022 is 15.6%. The stock carries a Zacks Rank #2 at present.
Frisco, TX-basedComstock Resources is an independent energy company. CRK is engaged in the acquisition, exploration, development and production of oil and natural gas, primarily in North Louisiana and East Texas.
Comstock Resources' expected sales growth rate for 2022 is 3.1%. The stock carries a Zacks Rank #2 currently.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1895404/solid-sales-growth-makes-these-5-stocks-worth-betting-on?art_rec=quote-stock_overview-zacks_news-ID01-txt-1895404
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 >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
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.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
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/performancefor information about the performance numbers displayed in this press release.