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5 Stocks with Robust Sales Growth to Counter Volatile Markets
Given the extremely volatile markets, it has become increasingly difficult for investors to select stocks and generate robust returns. Markets are currently bearing the brunt of the ongoing Russia-Ukraine conflict and unprecedented inflation numbers.
Thus, amid such a scenario, a conventional stock picking strategy is useful. One such method is selecting stocks with steady sales growth. In this regard, stocks like Methanex Corp., Carlisle Companies, Huntington Ingalls Industries, Inc., Cheniere Energy Inc. and Vistra Corp. are worthy bets.
Steady sales growth holds the key to survival in an ever-changing and highly competitive business environment. It is worth keeping in mind that when companies incur losses, although temporarily, they are valued based on their revenues, as top-line growth (or decline) is usually an indicator of a company's future earnings performance.
A company can improve earnings by resorting to expense control measures while maintaining stable revenues. However, sustainable bottom-line growth invariably requires higher revenues. Hence, the Price-to-Sales (P/S) ratio can be an apt metric for stock valuation. The importance of this metric lies in the fact that management has limited scope to manipulate revenues, unlike earnings.
While sales growth provides investors an understanding of product demand and pricing power, it doesn't reflect whether the company is operating efficiently. A huge sales number does not necessarily convert into profits.
Hence, considering a company's cash position and its sales can be a more dependable strategy. Significant cash in hand and steady cash flow give a company more flexibility with respect to business decisions and investments.
Here are five of the 13 stocks that qualified the screening:
Vancouver, BC-based Methanex is the world's largest supplier of methanol. MEOH currently operates production sites in New Zealand, the United States, Trinidad and Tobago, Egypt, Canada and Chile.
Methanex's expected sales growth rate for 2022 is 5.8%. The stock currently carries a Zacks Rank #2.
Scottsdale, AZ -based Carlisle is a diversified, global portfolio of niche brands and businesses with highly engineered and high-margin products. CSL is engaged in the design, manufacture and sale of a wide range of roofing and waterproofing products, engineered products and finishing equipment.
Carlisle's sales are expected to increase 31.1% for 2022. The stock sports a Zacks Rank #1 at present.
Based in Newport News, VA, Huntington Ingalls designs, builds and maintains nuclear-powered ships. HII operates through three segments: Ingalls division, Newport News Shipbuilding division and Technical Solutions division.
Huntington Ingalls' expected sales growth for 2022 is 13.9%. The company, at present, carries a Zacks Rank #2.
Cheniere Energy, headquartered in Houston, TX, is primarily engaged in businesses related to liquefied natural gas. LNG operates through its two business segments: LNG terminal and LNG and natural gas marketing.
Cheniere Energy's expected sales growth rate for 2022 is 81.3%. The stock sports a Zacks Rank #1 at present.
Irving, TX-based Vistra operates as an integrated retail electricity and power generation company. VST operates through six segments: Retail, Texas, East, West, Sunset and Asset Closure.
Vistra's expected sales growth rate for 2022 is 33.4%. The stock sports a Zacks Rank #1 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/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
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Zacks.com featured highlights Methanex, Carlisle Companies, Huntington Ingalls Industries, Cheniere Energy and Vistra
For Immediate Release
Chicago, IL – May 27, 2022 – Stocks in this week’s article are Methanex Corp. (MEOH - Free Report) , Carlisle Companies (CSL - Free Report) , Huntington Ingalls Industries, Inc. (HII - Free Report) , Cheniere Energy Inc. (LNG - Free Report) and Vistra Corp. (VST - Free Report) .
5 Stocks with Robust Sales Growth to Counter Volatile Markets
Given the extremely volatile markets, it has become increasingly difficult for investors to select stocks and generate robust returns. Markets are currently bearing the brunt of the ongoing Russia-Ukraine conflict and unprecedented inflation numbers.
Thus, amid such a scenario, a conventional stock picking strategy is useful. One such method is selecting stocks with steady sales growth. In this regard, stocks like Methanex Corp., Carlisle Companies, Huntington Ingalls Industries, Inc., Cheniere Energy Inc. and Vistra Corp. are worthy bets.
Steady sales growth holds the key to survival in an ever-changing and highly competitive business environment. It is worth keeping in mind that when companies incur losses, although temporarily, they are valued based on their revenues, as top-line growth (or decline) is usually an indicator of a company's future earnings performance.
A company can improve earnings by resorting to expense control measures while maintaining stable revenues. However, sustainable bottom-line growth invariably requires higher revenues. Hence, the Price-to-Sales (P/S) ratio can be an apt metric for stock valuation. The importance of this metric lies in the fact that management has limited scope to manipulate revenues, unlike earnings.
While sales growth provides investors an understanding of product demand and pricing power, it doesn't reflect whether the company is operating efficiently. A huge sales number does not necessarily convert into profits.
Hence, considering a company's cash position and its sales can be a more dependable strategy. Significant cash in hand and steady cash flow give a company more flexibility with respect to business decisions and investments.
Here are five of the 13 stocks that qualified the screening:
Vancouver, BC-based Methanex is the world's largest supplier of methanol. MEOH currently operates production sites in New Zealand, the United States, Trinidad and Tobago, Egypt, Canada and Chile.
Methanex's expected sales growth rate for 2022 is 5.8%. The stock currently carries a Zacks Rank #2.
Scottsdale, AZ -based Carlisle is a diversified, global portfolio of niche brands and businesses with highly engineered and high-margin products. CSL is engaged in the design, manufacture and sale of a wide range of roofing and waterproofing products, engineered products and finishing equipment.
Carlisle's sales are expected to increase 31.1% for 2022. The stock sports a Zacks Rank #1 at present.
Based in Newport News, VA, Huntington Ingalls designs, builds and maintains nuclear-powered ships. HII operates through three segments: Ingalls division, Newport News Shipbuilding division and Technical Solutions division.
Huntington Ingalls' expected sales growth for 2022 is 13.9%. The company, at present, carries a Zacks Rank #2.
Cheniere Energy, headquartered in Houston, TX, is primarily engaged in businesses related to liquefied natural gas. LNG operates through its two business segments: LNG terminal and LNG and natural gas marketing.
Cheniere Energy's expected sales growth rate for 2022 is 81.3%. The stock sports a Zacks Rank #1 at present.
Irving, TX-based Vistra operates as an integrated retail electricity and power generation company. VST operates through six segments: Retail, Texas, East, West, Sunset and Asset Closure.
Vistra's expected sales growth rate for 2022 is 33.4%. The stock sports a Zacks Rank #1 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/1929511/5-stocks-with-robust-sales-growth-to-counter-volatile-markets
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.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.