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5 Sales Growth Plays Well-Positioned to Deliver Steady Returns in 2026
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Key Takeaways
AEM, ENS, CACI, ROK and XYL are flagged for strong sales growth and cash flow over $500 million.
Stocks were screened using metrics like low P/S ratios, high ROE and strong operating margins.
Each company shows higher-than-industry sales estimate revisions over the past four weeks.
As 2025 ends, it’s a good time to review your portfolio. The year started with optimism, but markets were jolted by China’s low-cost AI push, pressure on U.S. Big Tech, Trump-era tariffs, sticky inflation and high interest rates. After a volatile, tariff-driven April, conditions steadied in May and improved mid-year as trade tensions eased. The Federal Reserve delivered three rate cuts starting in September, but the momentum weakened in the fourth quarter amid the longest U.S. government shutdown and growing concerns about the AI sector's overvaluation.
Against such a volatile backdrop, it is difficult for retail investors to interpret market signals and generate solid returns. So, the traditional method of selecting stocks is a good idea now. Sales growth provides a more reliable view for evaluating stocks compared with earnings-focused metrics. Stocks like Agnico Eagle Mines Limited (AEM - Free Report) , EnerSys (ENS - Free Report) , CACI International Inc (CACI - Free Report) , Rockwell Automation, Inc. (ROK - Free Report) and Xylem Inc. (XYL - Free Report) are worth betting on.
Sales growth is one of the clearest signals of a company’s underlying momentum. Unlike earnings, which can be influenced by accounting choices or short-term cost moves, revenues reflect real demand for a firm’s products and services. When sales rise consistently, it often indicates improving market share, a growing customer base or successful expansion into new segments. Therefore, strong revenue trends can serve as an early indicator of future earnings upside, operating leverage and long-term value creation.
Sales performance is also most meaningful in context, measured against peers and broader economic conditions. Sustained growth typically supports steadier cash flows, giving management flexibility to reinvest, pursue strategic opportunities and maintain balance-sheet strength without relying heavily on debt. Tracking these trends can help investors spot companies with durable competitive advantages and a long runway for growth.
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.
Toronto, Canada-based Agnico Eagle Mines is a gold producer with mining operations in Canada, Mexico and Finland. Further, AEM does exploration activities in Canada, Europe, Latin America and the United States.
AEM’s expected sales growth rate for 2025 is 38.6%. Agnico Eagle Mines sports a Zacks Rank #1 at present.
Headquartered in Pennsylvania, EnerSys is engaged in the manufacturing, marketing and distribution of various industrial batteries. ENS develops battery chargers and accessories, power equipment and outdoor cabinet enclosures. Furthermore, it offers support services to clients.
EnerSys’ expected sales growth rate for fiscal 2026 is 4%. ENS currently carries a Zacks Rank #2.
Based in Reston, VA, CACI International delivers IT applications and infrastructure. CACI’s solutions enrich defense and intelligence capabilities, assure homeland security, improve decision-making and help customers operate smartly and proficiently.
CACI International’s sales are expected to rise 8.5% in fiscal 2026. CACI carries a Zacks Rank #2 at present.
Based in Milwaukee, WI, Rockwell Automation provides industrial automation and information solutions worldwide. ROK has a wide network spanning more than 100 countries.
Rockwell Automation’s expected sales growth for fiscal 2026 is 5.8%. ROK, at present, carries a Zacks Rank #2.
Headquartered in Rye Brook, NY, Xylem is one of the leading providers of water solutions worldwide. XYL is involved in the full water-process cycle, including collection, distribution and returning of water to the environment.
Xylem’s sales are expected to grow 5.2% in 2025. XYL 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 starting point. 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.
Image: Bigstock
5 Sales Growth Plays Well-Positioned to Deliver Steady Returns in 2026
Key Takeaways
As 2025 ends, it’s a good time to review your portfolio. The year started with optimism, but markets were jolted by China’s low-cost AI push, pressure on U.S. Big Tech, Trump-era tariffs, sticky inflation and high interest rates. After a volatile, tariff-driven April, conditions steadied in May and improved mid-year as trade tensions eased. The Federal Reserve delivered three rate cuts starting in September, but the momentum weakened in the fourth quarter amid the longest U.S. government shutdown and growing concerns about the AI sector's overvaluation.
Against such a volatile backdrop, it is difficult for retail investors to interpret market signals and generate solid returns. So, the traditional method of selecting stocks is a good idea now. Sales growth provides a more reliable view for evaluating stocks compared with earnings-focused metrics. Stocks like Agnico Eagle Mines Limited (AEM - Free Report) , EnerSys (ENS - Free Report) , CACI International Inc (CACI - Free Report) , Rockwell Automation, Inc. (ROK - Free Report) and Xylem Inc. (XYL - Free Report) are worth betting on.
Sales growth is one of the clearest signals of a company’s underlying momentum. Unlike earnings, which can be influenced by accounting choices or short-term cost moves, revenues reflect real demand for a firm’s products and services. When sales rise consistently, it often indicates improving market share, a growing customer base or successful expansion into new segments. Therefore, strong revenue trends can serve as an early indicator of future earnings upside, operating leverage and long-term value creation.
Sales performance is also most meaningful in context, measured against peers and broader economic conditions. Sustained growth typically supports steadier cash flows, giving management flexibility to reinvest, pursue strategic opportunities and maintain balance-sheet strength without relying heavily on debt. Tracking these trends can help investors spot companies with durable competitive advantages and a long runway for growth.
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 Robust Sales Growth to Consider
Toronto, Canada-based Agnico Eagle Mines is a gold producer with mining operations in Canada, Mexico and Finland. Further, AEM does exploration activities in Canada, Europe, Latin America and the United States.
AEM’s expected sales growth rate for 2025 is 38.6%. Agnico Eagle Mines sports a Zacks Rank #1 at present.
Headquartered in Pennsylvania, EnerSys is engaged in the manufacturing, marketing and distribution of various industrial batteries. ENS develops battery chargers and accessories, power equipment and outdoor cabinet enclosures. Furthermore, it offers support services to clients.
EnerSys’ expected sales growth rate for fiscal 2026 is 4%. ENS currently carries a Zacks Rank #2.
Based in Reston, VA, CACI International delivers IT applications and infrastructure. CACI’s solutions enrich defense and intelligence capabilities, assure homeland security, improve decision-making and help customers operate smartly and proficiently.
CACI International’s sales are expected to rise 8.5% in fiscal 2026. CACI carries a Zacks Rank #2 at present.
Based in Milwaukee, WI, Rockwell Automation provides industrial automation and information solutions worldwide. ROK has a wide network spanning more than 100 countries.
Rockwell Automation’s expected sales growth for fiscal 2026 is 5.8%. ROK, at present, carries a Zacks Rank #2.
Headquartered in Rye Brook, NY, Xylem is one of the leading providers of water solutions worldwide. XYL is involved in the full water-process cycle, including collection, distribution and returning of water to the environment.
Xylem’s sales are expected to grow 5.2% in 2025. XYL 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 starting point. 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