For Immediate Release
Chicago, IL –August 02, 2017 - Stocks in this week’s article include Teradyne, Inc. (NYSE:TER – Free Report), Raymond James Financial, Inc. (NYSE:RJF – Free Report), TransUnion (NYSE:TRU – Free Report), OneMain Holdings, Inc. (NYSE:OMF – Free Report) and Newell Brands Inc. (NYSE:NWL – Free Report).
Top Stocks with Impressive Sales Growth to Keep an Eye On
Achieving growth is exceptionally challenging in today’s fast-changing operating environment. Hence, the companies have to step up marketing efforts over digital platforms and become more professional about sales management to drive their top line.
Technological evolvement further emphasizes the importance of sales and the need for the companies to apply the correct strategies and provide the right services to increase their sales.
Sales growth is a vital metric for any company as it is an important part of growth projections and influential in strategic decision making. So, sales should get more attention from investors in the investment process, as a healthy growth rate is usually a positive investment indicator.
Also, in cases where companies incur a loss on a temporary basis owing to short-term situations like product development stage, new entrant in a high-growth industry or paying higher taxes, they are valued based on revenues and not on earnings. This is because sales growth (or decline) is usually an early indicator of the company’s future earnings performance.
However, sales growth alone doesn’t reveal too much about a company’s future performance. Though it provides investors an insight into product demand and pricing power, a huge sales number does not necessarily translate into profits.
Therefore, consideration of a company’s cash position along with its sales number can be a more dependable strategy. Substantial cash in hand and a steady cash flow give a company more flexibility with respect to business decisions and potential investments. Most importantly, an adequate cash position suggests that revenues are being channelized in the right direction.
Choosing the Winning Stocks
In order to shortlist stocks that have witnessed impressive sales growth along with a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow greater than $500 million as our main screening parameters.
But sales growth and cash strength are not the absolute criteria for selecting stocks. So, we added certain other factors to arrive at a winning strategy.
Price-to-Sales (P/S) Ratio less than X-Industry: This metric determines the value placed on each dollar of a company’s revenues. The lower the ratio, the better it is for picking a stock since the investor is paying less for each unit of sales.
% Change F1 Sales Estimate Revisions (4 Weeks) greater than X-Industry: Better-than-industry estimate revision has often been seen to trigger an increase in the stock price.
Operating Margin (Average Last 5 years) greater than 5%: Operating margin measures how much every dollar of a company's sales translates into profits. A high ratio indicates that the company has good cost control and sales are increasing faster than costs, an optimal situation for the company.
Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is translated into profits and the company is not hoarding cash. A high ROE means the company is spending wisely and is in all likelihood profitable.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Here are five of the 12 stocks that qualified the screening:
Teradyne, Inc. (NYSE:TER – Free Report) designs, develops, manufactures, sells, and supports automatic test equipment. This North Reading, MA-based company currently has long-term expected earnings per share (EPS) growth rate of 10% and carries a Zacks Rank #2.
Raymond James Financial, Inc. (NYSE:RJF – Free Report), based in St. Petersburg, FL, is engaged in the underwriting, distribution, trading, and brokerage of equity and debt securities, and the sale of mutual funds and other investment products. It has long-term expected EPS growth rate of 17%. The company sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Based in Chicago, IL, TransUnion (NYSE:TRU – Free Report) provides risk and information solutions. The company has a long-term expected EPS growth rate of 10% and carries a Zacks Rank #2.
OneMain Holdings, Inc. (NYSE:OMF – Free Report) provides consumer finance and insurance products and services. This Evansville, IN-based company has a long-term expected EPS growth rate of 10% and a Zacks Rank #2.
Headquartered in Hoboken, NJ, Newell Brands Inc. (NYSE:NWL – Free Report) designs, sources, and distributes consumer and commercial products. The company currently has a long-term expected EPS growth rate of 12.1% and a Zacks Rank #2.
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
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. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time!Click here for your free subscription to Profit from the Pros.
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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.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/performance
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.
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Zacks.com featured highlights: Teradyne, Raymond James Financial, TransUnion, OneMain Holdings and Newell Brands
For Immediate Release
Chicago, IL –August 02, 2017 - Stocks in this week’s article include Teradyne, Inc. (NYSE:TER – Free Report), Raymond James Financial, Inc. (NYSE:RJF – Free Report), TransUnion (NYSE:TRU – Free Report), OneMain Holdings, Inc. (NYSE:OMF – Free Report) and Newell Brands Inc. (NYSE:NWL – Free Report).
Top Stocks with Impressive Sales Growth to Keep an Eye On
Achieving growth is exceptionally challenging in today’s fast-changing operating environment. Hence, the companies have to step up marketing efforts over digital platforms and become more professional about sales management to drive their top line.
Technological evolvement further emphasizes the importance of sales and the need for the companies to apply the correct strategies and provide the right services to increase their sales.
Sales growth is a vital metric for any company as it is an important part of growth projections and influential in strategic decision making. So, sales should get more attention from investors in the investment process, as a healthy growth rate is usually a positive investment indicator.
Also, in cases where companies incur a loss on a temporary basis owing to short-term situations like product development stage, new entrant in a high-growth industry or paying higher taxes, they are valued based on revenues and not on earnings. This is because sales growth (or decline) is usually an early indicator of the company’s future earnings performance.
However, sales growth alone doesn’t reveal too much about a company’s future performance. Though it provides investors an insight into product demand and pricing power, a huge sales number does not necessarily translate into profits.
Therefore, consideration of a company’s cash position along with its sales number can be a more dependable strategy. Substantial cash in hand and a steady cash flow give a company more flexibility with respect to business decisions and potential investments. Most importantly, an adequate cash position suggests that revenues are being channelized in the right direction.
Choosing the Winning Stocks
In order to shortlist stocks that have witnessed impressive sales growth along with a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow greater than $500 million as our main screening parameters.
But sales growth and cash strength are not the absolute criteria for selecting stocks. So, we added certain other factors to arrive at a winning strategy.
Price-to-Sales (P/S) Ratio less than X-Industry: This metric determines the value placed on each dollar of a company’s revenues. The lower the ratio, the better it is for picking a stock since the investor is paying less for each unit of sales.
% Change F1 Sales Estimate Revisions (4 Weeks) greater than X-Industry: Better-than-industry estimate revision has often been seen to trigger an increase in the stock price.
Operating Margin (Average Last 5 years) greater than 5%: Operating margin measures how much every dollar of a company's sales translates into profits. A high ratio indicates that the company has good cost control and sales are increasing faster than costs, an optimal situation for the company.
Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is translated into profits and the company is not hoarding cash. A high ROE means the company is spending wisely and is in all likelihood profitable.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Here are five of the 12 stocks that qualified the screening:
Teradyne, Inc. (NYSE:TER – Free Report) designs, develops, manufactures, sells, and supports automatic test equipment. This North Reading, MA-based company currently has long-term expected earnings per share (EPS) growth rate of 10% and carries a Zacks Rank #2.
Raymond James Financial, Inc. (NYSE:RJF – Free Report), based in St. Petersburg, FL, is engaged in the underwriting, distribution, trading, and brokerage of equity and debt securities, and the sale of mutual funds and other investment products. It has long-term expected EPS growth rate of 17%. The company sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Based in Chicago, IL, TransUnion (NYSE:TRU – Free Report) provides risk and information solutions. The company has a long-term expected EPS growth rate of 10% and carries a Zacks Rank #2.
OneMain Holdings, Inc. (NYSE:OMF – Free Report) provides consumer finance and insurance products and services. This Evansville, IN-based company has a long-term expected EPS growth rate of 10% and a Zacks Rank #2.
Headquartered in Hoboken, NJ, Newell Brands Inc. (NYSE:NWL – Free Report) designs, sources, and distributes consumer and commercial products. The company currently has a long-term expected EPS growth rate of 12.1% and a Zacks Rank #2.
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
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. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time!Click here for your free subscription to Profit from the Pros.
Get the full Report on TER - FREE
Get the full Report on RJF - FREE
Get the full Report on TRU - FREE
Get the full Report on OMF - FREE
Get the full Report on NWL - FREE
Follow us on Twitter: https://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/performance
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.