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Flowserve, California Resources and Globus Medical flagged as sales-growth buys amid volatility.
Screen favors 5-year sales growth above industry and cash flow over $500M, plus low P/S and margins.
2026 sales growth forecasts: Flowserve 6.3%, California Resources 2.8%, Globus Medical 8.7%.
U.S. stock markets have had a choppy start to 2026, with investors balancing resilient economic data and AI-driven optimism against higher oil prices, sticky inflation risks, elevated Treasury yields and geopolitical tensions centered on Iran and the Strait of Hormuz. Further, the sharp rise in oil prices tied to the Middle East conflict has added fresh inflationary risks.
Against such a volatile situation, the traditional way of choosing stocks is a good idea. Sales growth provides a more reliable view for evaluating stocks compared with earnings-focused metrics. So, stocks like Flowserve Corporation (FLS - Free Report) , California Resources Corporation (CRC - Free Report) and Globus Medical, Inc. (GMED - Free Report) are worth betting on.
Sales growth is one of the clearest measures of a company’s underlying momentum. Unlike earnings, which can be influenced by accounting choices or short-term swings in costs, revenues reflect real demand for a company’s products and services. Consistent top-line expansion can point to rising market share, a growing customer base, stronger pricing power or successful entry into new markets.
It can also be an early signal of future profit growth. As sales increase, higher volumes can improve operating leverage and create scope for margin expansion. Still, sales growth is most useful when viewed in context. Comparing performance with peers, industry benchmarks, and the broader business cycle helps distinguish durable strength from a temporary boost.
What matters most is the quality of that growth. Recurring demand is far more valuable than one-off gains, heavy discounting or acquisition-led expansion. Companies that can sustain healthy sales growth across different economic environments are often better positioned to generate stable cash flows, reinvest with confidence, strengthen their balance sheets and preserve a longer runway for expansion.
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%: The 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.
Irving, TX-based Flowserve is a leading manufacturer and aftermarket service provider of comprehensive flow control systems globally. FLS’ revenues are sourced from original equipment manufacturing and aftermarket sales and services.
FLS’ expected sales growth rate for 2026 is 6.3%. Flowserve sports a Zacks Rank #1 at present.
Headquartered in Long Beach, CA, California Resources is an independent energy and carbon management company focused primarily on California. CRC operates two reportable segments: oil and natural gas, and carbon management, which it brands as Carbon TerraVault.
California Resources’ expected sales growth rate for 2026 is 2.8%. CRC currently sports a Zacks Rank #1.
Audubon, PA-based Globus Medical is a medical device company that develops and commercializes healthcare solutions for patients with musculoskeletal disorders. GMED currently has its sales operations distributed across 65 countries worldwide.
GMED’s sales are expected to rise 8.7% in 2026. Globus Medical sports a Zacks Rank #1 at present.
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Buy 3 Sales Growth Stocks as Rising Geopolitical Risk Shakes Markets
Key Takeaways
U.S. stock markets have had a choppy start to 2026, with investors balancing resilient economic data and AI-driven optimism against higher oil prices, sticky inflation risks, elevated Treasury yields and geopolitical tensions centered on Iran and the Strait of Hormuz. Further, the sharp rise in oil prices tied to the Middle East conflict has added fresh inflationary risks.
Against such a volatile situation, the traditional way of choosing stocks is a good idea. Sales growth provides a more reliable view for evaluating stocks compared with earnings-focused metrics. So, stocks like Flowserve Corporation (FLS - Free Report) , California Resources Corporation (CRC - Free Report) and Globus Medical, Inc. (GMED - Free Report) are worth betting on.
Sales growth is one of the clearest measures of a company’s underlying momentum. Unlike earnings, which can be influenced by accounting choices or short-term swings in costs, revenues reflect real demand for a company’s products and services. Consistent top-line expansion can point to rising market share, a growing customer base, stronger pricing power or successful entry into new markets.
It can also be an early signal of future profit growth. As sales increase, higher volumes can improve operating leverage and create scope for margin expansion. Still, sales growth is most useful when viewed in context. Comparing performance with peers, industry benchmarks, and the broader business cycle helps distinguish durable strength from a temporary boost.
What matters most is the quality of that growth. Recurring demand is far more valuable than one-off gains, heavy discounting or acquisition-led expansion. Companies that can sustain healthy sales growth across different economic environments are often better positioned to generate stable cash flows, reinvest with confidence, strengthen their balance sheets and preserve a longer runway for expansion.
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%: The 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.
3 Stocks With Solid Sales Growth to Consider
Irving, TX-based Flowserve is a leading manufacturer and aftermarket service provider of comprehensive flow control systems globally. FLS’ revenues are sourced from original equipment manufacturing and aftermarket sales and services.
FLS’ expected sales growth rate for 2026 is 6.3%. Flowserve sports a Zacks Rank #1 at present.
Headquartered in Long Beach, CA, California Resources is an independent energy and carbon management company focused primarily on California. CRC operates two reportable segments: oil and natural gas, and carbon management, which it brands as Carbon TerraVault.
California Resources’ expected sales growth rate for 2026 is 2.8%. CRC currently sports a Zacks Rank #1.
Audubon, PA-based Globus Medical is a medical device company that develops and commercializes healthcare solutions for patients with musculoskeletal disorders. GMED currently has its sales operations distributed across 65 countries worldwide.
GMED’s sales are expected to rise 8.7% in 2026. Globus Medical sports a Zacks Rank #1 at present.