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3 Companies Enjoying Robust Sales Growth

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Consistent sales growth is key, as it’s the foundation of generating profits. Strong revenue generation allows companies to achieve scaling efficiencies, generate continuous shareholder value, and many other clear benefits.

When it comes to top line strength, three companies – PDD Holdings (PDD - Free Report) , Amazon (AMZN - Free Report) , and Meta Platforms (META - Free Report) – have all grown their sales considerably over recent years.

In addition, all three currently sport a favorable Zacks Rank, reflecting optimism among analysts. For those seeking top line compounders, let’s take a closer look at each.

Amazon

Amazon shares have been notably strong performers over the last year, up 90% and seeing positivity post-earnings in back-to-back releases. The stock is a Zacks Rank #1 (Strong Buy), with earnings expectations higher across the board.

Investors were pleased with the market titan’s latest set of quarterly results, with AWS net sales growing 13% year-over-year and reflecting an acceleration relative to other recent periods. The profitability picture overall improved nicely, with Q4 operating income totaling $13.2 billion vs. $2.7 billion previously.

Meta Platforms

Meta Platforms shares have also been big-time performers over the last year, beating the S&P 500 by a wide margin. Better than expected quarterly results have helped brighten its overall earnings outlook, with the stock sporting a Zacks Rank #1 (Strong Buy).

The company’s top line expansion has been strong, with consensus estimates for its next release suggesting 26% higher sales year-over-year. The stock remains a solid consideration for growth-focused investors, underpinned by its Style Score of ‘B’ for Growth.

PDD Holdings

PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses, including Temu. The stock sports a Zacks Rank #2 (Buy), with the revisions trend for its current fiscal year notably positive, up 33% over the last year.

The company’s growth expectations are impossible to ignore. Consensus estimates for its current year suggest 41% earnings growth on 77% higher sales. Looking ahead, expectations for FY24 suggest an additional 28% of earnings growth paired with a 42% sales bump.

Bottom Line

Strong revenue generation leads to many positives, such as scaling efficiencies and meaningful earnings growth.

And when it comes to strong revenue trends, all three companies above – PDD Holdings (PDD - Free Report) , Amazon (AMZN - Free Report) , and Meta Platforms (META - Free Report) – precisely fit the criteria.


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