Back to top

Image: Bigstock

Zacks.com featured highlights include Boyd Gaming, Lithia Motors, Everest Re Group, Jones Lang LaSalle and QuidelOrtho

Read MoreHide Full Article

For Immediate Release

Chicago, IL – June 30, 2022 – Stocks in this week’s article are Boyd Gaming Corp. (BYD - Free Report) , Lithia Motors, Inc. (LAD - Free Report) , Everest Re Group, Ltd. (RE - Free Report) , Jones Lang LaSalle Inc. (JLL - Free Report) and QuidelOrtho Corp. (QDEL - Free Report)

5 Stocks with Robust Sales Growth to Beat Recession Woes

At present, one must consider the changing market backdrop and chalk out an investment strategy to help generate robust returns. Markets are bearing the brunt of the ongoing Russia-Ukraine conflict, unprecedented inflation numbers and recessionary fears.

Amid such bearish investor sentiments, a conventional stock picking strategy is useful. One such method is selecting stocks with strong sales growth. So, stocks like Boyd Gaming Corp., Lithia Motors, Inc., Everest Re Group, Ltd., Jones Lang LaSalle Inc. and QuidelOrtho Corp. are worth considering.

One should keep in mind that sales growth is one of the primary factors for the long-term success of any company. Continuous growth in sales holds the key to the survival of any business. Sales growth not only provides insight into product demand and pricing power but is also important for growth projections and strategic decision-making.

It should be kept in mind that in case a company incurs a loss (although temporarily), it is valued on its revenues as top-line growth (or decline) is usually an indicator of its future earnings performance. Also, the absence of sales growth indicates that the company's market share is not improving. Hence, some sustained sales growth is required to support the bottom line.

Price-to-Sales (P/S) ratio can turn out to be a suitable metric for stock valuation. The importance of the metric lies in the fact that management has limited opportunities to manipulate revenues unlike earnings.

Nevertheless, a huge sales number does not necessarily convert into profits. Hence, it is more prudent to consider a company's cash position along with its sales number. Substantial cash in hand and a steady cash flow lend a company more flexibility with respect to business decisions and investments.

Here are five of the 20 stocks that qualified the screening:

Las Vegas-based Boyd Gaming is a multi-jurisdictional gaming company. BYD owns and operates gaming entertainment properties in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio and Pennsylvania.

Boyd Gaming's expected sales growth rate for 2022 is 3%. The stock currently carries a Zacks Rank #2.

Medford, OR-based Lithia Motors is one of the leading automotive retailers of new and used vehicles and related services in the United States. The core brands offered by LAD include Chrysler, General Motors, Toyota, Subaru, Honda, Acura, Ford, BMW, MINI, Nissan and Hyundai.

Lithia Motors' sales are expected to jump 29.9% for 2022. The stock sports a Zacks Rank #1 at present.

Headquartered in Hamilton, Bermuda, Everest Re writes property and casualty, reinsurance and insurance in the United States, Bermuda and international markets. RE virtually underwrites all classes and categories of business in the treaty, facultative and specialty lines both through brokers and directly with ceding companies.

Everest Re's expected sales growth for 2022 is 10.7%. The company, at present, carries a Zacks Rank #2.

Jones Lang LaSalle, headquartered in Chicago, IL, is a leading full-service real estate firm that provides corporate, financial and investment management services to corporations and other real estate owners, users and investors worldwide. JLL divides its business into two primary categories: Real Estate Services (RES) and Investment Management (IM).

Jones Lang LaSalle's expected sales growth rate for 2022 is 8.2%. The stock carries a Zacks Rank #2 at present.

QuidelOrtho, based in San Diego, CA, is a key player in the development, manufacturing and marketing of rapid diagnostic testing solutions. QDEL sells its products directly to end users and distributors, in each case, for professional use.

QuidelOrtho's expected sales growth rate for 2022 is 49.1%. 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/1945477/5-stocks-with-robust-sales-growth-to-beat-recession-woes

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://www.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/

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.