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5 Stocks With Robust Sales Growth to Buy Amid a Challenging Backdrop
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Key Takeaways
Investors are turning to sales growth as a more reliable measure than earnings in a volatile market.
Stocks like UHS, FE, NTES, LW and JPM show solid expected sales growth and strong cash generation.
The screen favored firms with low P/S ratios, rising sales estimates and robust operating margins and ROE.
Markets started 2025 strong but soon turned volatile amid tariff and geopolitical risks. The Fed cut rates by 25 basis points to 4.00–4.25% in September and signaled two more cuts this year. Despite lingering inflation and rising unemployment, equities remain near record highs, fueled by optimism over rate cuts, AI-driven earnings growth and hopes of a soft landing even as a U.S. data blackout adds uncertainty. Against such a backdrop, it is a challenge for retail investors to select the right stocks and generate robust returns.
Therefore, a traditional way of picking stocks is a good idea now. Sales growth provides a more dependable lens for evaluating stocks compared to earnings-focused metrics. Stocks such as Lamb Weston (LW - Free Report) , Universal Health Services Inc. (UHS - Free Report) , FirstEnergy Corp. (FE - Free Report) , NetEase, Inc. (NTES - Free Report) and JPMorgan Chase & Co. (JPM - Free Report) are worth investing.
When assessing a company, sales growth is mostly preferred over earnings. Steady 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 revenues during periods of economic downturn indicates 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, constant 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 counter challenges, pursue growth opportunities and maintain operational stability even in uncertain times.
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.
Lamb Weston, based in Eagle, ID, is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries. It also provides a range of appetizers. LW, along with its joint venture allies, is the top frozen potato products supplier in North America, while also operating internationally.
LW’s expected sales growth rate for fiscal 2026 is 1.3%. Lamb Weston sports a Zacks Rank #1 at present.
Universal Health Services, headquartered in King of Prussia, PA, owns and operates (through its subsidiaries) acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers. UHS, through its subsidiaries, operates more than 355 inpatient acute care hospitals and 60 outpatient and other facilities in 39 states, Washington, DC, the United Kingdom and Puerto Rico.
Universal Health Services’ expected sales growth rate for 2025 is 8.5%. UHS currently carries a Zacks Rank #2.
Based in Akron, OH, FirstEnergy is a diversified energy company. Through its subsidiaries and affiliates, FE engages in the transmission, distribution and generation of electricity.
FirstEnergy’s sales are expected to jump 6.6% in 2025. FE carries a Zacks Rank #2 at present.
Based in China, NetEase is engaged in online games, music streaming, online intelligent learning services and Internet content services businesses. NTES operates through Games and Related Value-Added Services; Youdao; NetEase Cloud Music; and Innovative Businesses and Others segments.
NetEase’s expected sales growth for 2025 is 10.3%. NTES, at present, carries a Zacks Rank #2.
New York-based JPMorgan is one of the biggest global banks. As of Sept. 30, 2025, JPM had assets worth $4.56 trillion and total stockholders’ equity worth $360.2 billion.
JPMorgan’s sales are expected to grow 2.1% in 2025. JPM carries a Zacks Rank #2 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 Buy Amid a Challenging Backdrop
Key Takeaways
Markets started 2025 strong but soon turned volatile amid tariff and geopolitical risks. The Fed cut rates by 25 basis points to 4.00–4.25% in September and signaled two more cuts this year. Despite lingering inflation and rising unemployment, equities remain near record highs, fueled by optimism over rate cuts, AI-driven earnings growth and hopes of a soft landing even as a U.S. data blackout adds uncertainty. Against such a backdrop, it is a challenge for retail investors to select the right stocks and generate robust returns.
Therefore, a traditional way of picking stocks is a good idea now. Sales growth provides a more dependable lens for evaluating stocks compared to earnings-focused metrics. Stocks such as Lamb Weston (LW - Free Report) , Universal Health Services Inc. (UHS - Free Report) , FirstEnergy Corp. (FE - Free Report) , NetEase, Inc. (NTES - Free Report) and JPMorgan Chase & Co. (JPM - Free Report) are worth investing.
When assessing a company, sales growth is mostly preferred over earnings. Steady 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 revenues during periods of economic downturn indicates 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, constant 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 counter challenges, pursue growth opportunities and maintain operational stability even in uncertain times.
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 Solid Sales Growth to Buy
Lamb Weston, based in Eagle, ID, is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries. It also provides a range of appetizers. LW, along with its joint venture allies, is the top frozen potato products supplier in North America, while also operating internationally.
LW’s expected sales growth rate for fiscal 2026 is 1.3%. Lamb Weston sports a Zacks Rank #1 at present.
Universal Health Services, headquartered in King of Prussia, PA, owns and operates (through its subsidiaries) acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers. UHS, through its subsidiaries, operates more than 355 inpatient acute care hospitals and 60 outpatient and other facilities in 39 states, Washington, DC, the United Kingdom and Puerto Rico.
Universal Health Services’ expected sales growth rate for 2025 is 8.5%. UHS currently carries a Zacks Rank #2.
Based in Akron, OH, FirstEnergy is a diversified energy company. Through its subsidiaries and affiliates, FE engages in the transmission, distribution and generation of electricity.
FirstEnergy’s sales are expected to jump 6.6% in 2025. FE carries a Zacks Rank #2 at present.
Based in China, NetEase is engaged in online games, music streaming, online intelligent learning services and Internet content services businesses. NTES operates through Games and Related Value-Added Services; Youdao; NetEase Cloud Music; and Innovative Businesses and Others segments.
NetEase’s expected sales growth for 2025 is 10.3%. NTES, at present, carries a Zacks Rank #2.
New York-based JPMorgan is one of the biggest global banks. As of Sept. 30, 2025, JPM had assets worth $4.56 trillion and total stockholders’ equity worth $360.2 billion.
JPMorgan’s sales are expected to grow 2.1% in 2025. JPM carries a Zacks Rank #2 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