Back to top

Press Releases

Zacks Equity Research

Zacks.com featured highlights: Regeneron Pharmaceuticals, Nordstrom, Intel, Nu Skin Enterprises and Priceline GroupZacks.com featured highlights: Regeneron Pharmaceuticals, Nordstrom, Intel, Nu Skin Enterprises and Priceline Group

REGN JWN INTC NUS PCLN

Trades from $3

For Immediate Release

Chicago, IL – September 27, 2016 - Stocks in this week’s article include: Regeneron Pharmaceuticals, Inc. (NASDAQ: (REGN - Free Report) -Free Report) , Nordstrom Inc. (NYSE: (JWN - Free Report) -Free Report) , Intel Corporation (NASDAQ: (INTC - Free Report) -Free Report) , Nu Skin Enterprises Inc. (NYSE: (NUS - Free Report) -Free Report) and Priceline Group Inc. (NASDAQ: (PCLN - Free Report) -Free Report).

Screen of the Week of Zacks Investment Research:

5 Stocks with Impressive Sales Growth to Bet On

Strong sales growth is the key to survival for any business, particularly in the current market scenario that is characterized by changing customer preferences, demographic variations and stiff competition. Sales growth as such remains an important measure for any corporate house, as it is vital to growth projections and strategic decision making.

However, when it comes to picking stocks, investors often fail to consider sales growth as a dependable metric. This might be because of investors’ preconceived notion that a company’s stock price is typically sensitive to its earnings momentum.

Nevertheless, it’s worth keeping in mind that in cases where 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. Further, a company can improve earnings by resorting to cost control measures while maintaining stable revenues. However, superior profits could be achieved through continued revenue growth.

Hence, the Price-to-Sales (P/S) ratio can turn out to be an appropriate metric for stock valuation. This metric’s importance 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. Hence, considering a company’s cash position along with its sales number can prove to 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.

Bet Like a Pro

A careful selection of stocks considering certain factors should help investors to not only build wealth but beat the market as well.

In order to shortlist stocks that have witnessed impressive sales growth along with a high cash balance, we added 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow greater than $500 million as our primary screening parameters.

However, sales growth and cash strength are not the absolute criteria for selecting stocks. So, we added a few other factors to arrive at a winning strategy.

Price-to-Sales (P/S) Ratio less than X-Industry : This metric measures the value placed on each dollar of a company’s revenues. The lower the ratio, the better it is for picking a stock since the investor is paying less for each unit of sales.

% Change F1 Sales Estimate Revisions (4 Weeks) greater than X-Industry : Better-than-industry estimate revision has often been seen to trigger an increase in the stock price.

Operating Margin (Average Last 5 years) greater than 5% : Operating margin measures how much every dollar of a company's sales translates into profits. A high ratio indicates that the company has good cost control and sales are increasing faster than costs, an optimal situation for the company.

Return on Equity (ROE) greater than 5% : This metric will ensure that sales growth is being translated into profits and the company is not hoarding cash. A high ROE means the company is spending wisely and is in all likelihood profitable.

Zacks Rank less than or equal to 2 : Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.

Here are five of the nine stocks that made it through the screen:

Regeneron Pharmaceuticals, Inc. ( NASDAQ: (REGN - Free Report) -Free Report) is a biopharmaceutical company engaged in discovering, inventing, developing, manufacturing and commercializing medicines for the treatment of severe medical conditions globally. This Tarrytown, NY-based company has a long-term expected EPS (earnings per share) growth rate of 22.6% and carries a Zacks Rank #2.

Nordstrom Inc. ( NYSE: (JWN - Free Report) -Free Report) , based in Seattle, WA, is a leading fashion specialty retailer, offering high-quality apparel, shoes, cosmetics and accessories for men, women and kids. The company currently has a long-term expected EPS growth rate of 9.7% and carries a Zacks Rank #2.

Intel Corporation ( NASDAQ: (INTC - Free Report) -Free Report) , one of the world’s leading producers of semiconductor components, currently has a long-term expected EPS growth rate of 7.8%. This Santa Clara, CA-based company holds a Zacks Rank #2.

Nu Skin Enterprises Inc. ( NYSE: (NUS - Free Report) -Free Report) is engaged in the development and distribution of consumer products, offering beauty and wellness solutions under its Nu Skin personal care, Pharmanex nutrition brand and ageLOC anti-aging category brands in over 50 markets worldwide. The Provo, UT-based firm has a long-term expected EPS growth rate of 8.1% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here .

The Priceline Group Inc. ( NASDAQ: (PCLN - Free Report) -Free Report) is engaged in providing online travel & related services to customers worldwide through its six major brands including Booking.com, priceline.com, KAYAK, and OpenTable. This Norwalk, CT-based company has a long-term expected EPS growth rate of 18.3% and a Zacks Rank #2.


You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

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 .

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.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »


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. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.

Get the full Report on REGN - FREE

Get the full Report on JWN - FREE

Get the full Report on INTC - FREE

Get the full Report on NUS - FREE

Get the full Report on PCLN - 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: 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/performance for information about the performance numbers displayed in this press release.