Back to top

Image: Bigstock

Zacks.com featured highlights include: Williams-Sonoma, Rockwell Automation, Lennar Corp, People's United Financial and 3M

Read MoreHide Full Article

For Immediate Release

Chicago, IL – December 10, 2020 – Stocks in this week’s article are Williams-Sonoma, Inc. (WSM - Free Report) , Rockwell Automation, Inc. (ROK - Free Report) , Lennar Corporation (LEN - Free Report) , People's United Financial, Inc. (PBCT - Free Report) and 3M Company (MMM - Free Report) .

Bet on These 5 Top-Ranked Stocks with Solid Sales Growth

A healthy business with steady sales growth is the key to survival amid a fast changing and highly competitive business environment. Yet, when it comes to choosing stocks, investors often fail to recognize sales growth as a dependable metric. This could be because of investors’ preconceived notion that a company’s stock price is typically sensitive to its earnings growth.

Nevertheless, it’s worth keeping in mind that when companies incur a loss, albeit briefly, they are valued on their revenues, as top-line growth (or decline) is usually an indicator of a company’s future earnings performance.

Further, a company can improve earnings by resorting to cost control measures while maintaining stable revenues. However, a sustainable bottom-line growth invariably requires superior revenues.

Hence, the Price-to-Sales ratio can turn out to be an appropriate metric for stock valuation. Also, this metric’s importance further lies in the fact that management has limited opportunities to manipulate revenues unlike earnings.

While sales growth provides investors an insight into product demand and pricing power, it doesn’t indicate whether the company is operating efficiently. A huge sales number does not necessarily convert into profits.

So, a 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 investments.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1146148/bet-on-these-5-top-ranked-stocks-with-solid-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

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://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: 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.