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5 Stocks With Robust Sales Growth to Overcome Macro Challenges
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Key Takeaways
Sales growth is highlighted as a stronger gauge than earnings in volatile market conditions.
Universal Health, Methanex, Arista, Voya and Maximus are screened for robust sales growth.
Arista leads with projected 25.4% 2025 sales growth, while Voya follows with 16.1%.
Markets started 2025 on a positive note but have since faced considerable volatility. Tariff-related headwinds and geopolitical uncertainty persist, yet the Federal Reserve’s interest rate cut signals a softening labor market and the inflationary effects of trade policies. The central bank hinted at two more rate cuts before the year's end. Given this macroeconomic backdrop, choosing the correct stocks remains challenging for retail investors.
Therefore, sales growth provides a more dependable lens for evaluating stocks than traditional earnings-focused metrics. Hence, stocks such as Universal Health Services Inc. (UHS - Free Report) , Methanex Corporation (MEOH - Free Report) , Arista Networks, Inc. (ANET - Free Report) , Voya Financial Inc. (VOYA - Free Report) and Maximus, Inc. (MMS - Free Report) are worth considering for investment.
When evaluating a company, sales growth is often given a preference over earnings. Consistent sales growth reflects the actual demand for a company’s products or services. Focusing on sales also offers investors greater visibility into the durability of a company’s business model. The company that can expand its top line during periods of economic stress signals pricing power, competitive advantages and the ability to capture market share.
On the other hand, earnings can be distorted by one-off charges, cost-cutting, accounting adjustments or temporary margin expansions, making them less indicative of a company’s underlying trajectory.
Moreover, sustained sales growth often translates into stronger and more predictable cash flows, providing management with the financial flexibility to reinvest in innovation, expand into new markets or return capital to shareholders, all without excessive reliance on debt. Robust cash reserves and steady cash flow provide companies with the flexibility to weather challenges, pursue growth opportunities and sustain operational stability even in uncertain conditions.
Selecting the Potential Winning Stocks
To shortlist stocks with impressive sales growth and a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow of more than $500 million as our main screening parameters.
But sales growth and cash strength are not the absolute criteria for selecting stocks. Hence, we have added other factors to arrive at a winning strategy.
P/S Ratio less than X-Industry: This metric determines 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 (four weeks) greater than X-Industry: Estimate revisions, better than the industry, are often seen to trigger an increase in stock price.
Operating Margin (average last five 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.
Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is translated into profits and the company is not hoarding cash. A high ROE means that the company is spending wisely and is in all likelihood profitable.
King of Prussia, PA-based Universal Health Services owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers. UHS operates more than 350 inpatient acute care hospitals and 60 outpatient and other facilities across 39 states, Washington, DC, the United Kingdom and Puerto Rico.
UHS’ expected sales growth rate for 2025 is 8.5%. Universal Health Services carries a Zacks Rank #2 at present.
Methanex, headquartered in Vancouver, Canada, is a leading global supplier of methanol. MEOH has production sites in New Zealand, the United States, Trinidad and Tobago, Egypt, Canada and Chile.
Methanex’s expected sales growth rate for 2025 is 5.6%. PGR currently sports a Zacks Rank #1.
Headquartered in Santa Clara, CA, Arista provides cloud networking solutions for data centers and cloud computing environments. At the core of ANET’s cloud networking solutions is the Linux-based Extensible Operating System.
Arista’s sales are expected to jump 25.4% in 2025. ANET carries a Zacks Rank #2 at present.
Based in New York, Voya Financial operates as a retirement, investment and employee benefits company. VOYA offers products and services through financial intermediaries, independent producers, affiliated advisors and dedicated sales specialists.
Voya Financial’s expected sales growth for 2025 is 16.1%. VOYA, at present, carries a Zacks Rank #2.
Reston, VA-based Maximus operates government health and human services programs globally. MMS has built a strong reputation as a trusted partner to governments worldwide, delivering cost-effective, scalable solutions in health and human services.
Maximus’ sales are expected to grow 2.7% in fiscal 2025. MMS sports a Zacks Rank #1 at present.
Get the remaining stock 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.
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.
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5 Stocks With Robust Sales Growth to Overcome Macro Challenges
Key Takeaways
Markets started 2025 on a positive note but have since faced considerable volatility. Tariff-related headwinds and geopolitical uncertainty persist, yet the Federal Reserve’s interest rate cut signals a softening labor market and the inflationary effects of trade policies. The central bank hinted at two more rate cuts before the year's end. Given this macroeconomic backdrop, choosing the correct stocks remains challenging for retail investors.
Therefore, sales growth provides a more dependable lens for evaluating stocks than traditional earnings-focused metrics. Hence, stocks such as Universal Health Services Inc. (UHS - Free Report) , Methanex Corporation (MEOH - Free Report) , Arista Networks, Inc. (ANET - Free Report) , Voya Financial Inc. (VOYA - Free Report) and Maximus, Inc. (MMS - Free Report) are worth considering for investment.
When evaluating a company, sales growth is often given a preference over earnings. Consistent sales growth reflects the actual demand for a company’s products or services. Focusing on sales also offers investors greater visibility into the durability of a company’s business model. The company that can expand its top line during periods of economic stress signals pricing power, competitive advantages and the ability to capture market share.
On the other hand, earnings can be distorted by one-off charges, cost-cutting, accounting adjustments or temporary margin expansions, making them less indicative of a company’s underlying trajectory.
Moreover, sustained sales growth often translates into stronger and more predictable cash flows, providing management with the financial flexibility to reinvest in innovation, expand into new markets or return capital to shareholders, all without excessive reliance on debt. Robust cash reserves and steady cash flow provide companies with the flexibility to weather challenges, pursue growth opportunities and sustain operational stability even in uncertain conditions.
Selecting the Potential Winning Stocks
To shortlist stocks with impressive sales growth and a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow of more than $500 million as our main screening parameters.
But sales growth and cash strength are not the absolute criteria for selecting stocks. Hence, we have added other factors to arrive at a winning strategy.
P/S Ratio less than X-Industry: This metric determines 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 (four weeks) greater than X-Industry: Estimate revisions, better than the industry, are often seen to trigger an increase in stock price.
Operating Margin (average last five 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.
Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is translated into profits and the company is not hoarding cash. A high ROE means that 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
5 Stocks With Attractive Sales Growth to Buy
King of Prussia, PA-based Universal Health Services owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers. UHS operates more than 350 inpatient acute care hospitals and 60 outpatient and other facilities across 39 states, Washington, DC, the United Kingdom and Puerto Rico.
UHS’ expected sales growth rate for 2025 is 8.5%. Universal Health Services carries a Zacks Rank #2 at present.
Methanex, headquartered in Vancouver, Canada, is a leading global supplier of methanol. MEOH has production sites in New Zealand, the United States, Trinidad and Tobago, Egypt, Canada and Chile.
Methanex’s expected sales growth rate for 2025 is 5.6%. PGR currently sports a Zacks Rank #1.
Headquartered in Santa Clara, CA, Arista provides cloud networking solutions for data centers and cloud computing environments. At the core of ANET’s cloud networking solutions is the Linux-based Extensible Operating System.
Arista’s sales are expected to jump 25.4% in 2025. ANET carries a Zacks Rank #2 at present.
Based in New York, Voya Financial operates as a retirement, investment and employee benefits company. VOYA offers products and services through financial intermediaries, independent producers, affiliated advisors and dedicated sales specialists.
Voya Financial’s expected sales growth for 2025 is 16.1%. VOYA, at present, carries a Zacks Rank #2.
Reston, VA-based Maximus operates government health and human services programs globally. MMS has built a strong reputation as a trusted partner to governments worldwide, delivering cost-effective, scalable solutions in health and human services.
Maximus’ sales are expected to grow 2.7% in fiscal 2025. MMS sports a Zacks Rank #1 at present.
Get the remaining stock 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 of 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