For Immediate Release
Chicago, IL – January 18, 2021 – Stocks in this week’s article are PepsiCo, Inc. (
PEP Quick Quote PEP - Free Report) , Lennar Corporation ( LEN Quick Quote LEN - Free Report) , Diamondback Energy, Inc. ( FANG Quick Quote FANG - Free Report) , Huntington Bancshares Incorporated ( HBAN Quick Quote HBAN - Free Report) and CenterPoint Energy, Inc. ( CNP Quick Quote CNP - Free Report) . Invest in These 5 Stocks with Attractive Sales Growth
A steady sales growth is the key to survival for any company in today's highly competitive environment. Companies have stepped up marketing initiatives over digital platforms and become more professional about sales management to drive top-line growth.
Flat or declining sales growth indicates obstacles at the company, which will limit scope for sustained growth. Stagnant companies may generate profits for a short period, but they do not ensure enough growth to attract new investors.
Also, revenues are often more closely monitored than earnings when assessing the growth of a business. It's worth keeping in mind that in cases when companies incur a loss, albeit transitorily, they are valued on their revenues, as top-line growth (or decline) is usually an indicator of a company's future earnings performance.
So, the price-to-sales ratio can turn out to be an appropriate metric for stock valuation. This metric's importance further lies in the fact that management has limited opportunities to manipulate revenues, unlike earnings.
Yet, focusing only on sales growth is not enough. 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/1247151/invest-in-these-5-top-stocks-with-attractive-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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Contact: Jim Giaquinto
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