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