After a subdued start to the year, U.S. stocks have recovered well, with major indexes moving back toward record levels despite periodic swings. The rebound has been supported by solid company results, healthy consumer spending, easing inflation worries and hopes that interest rates could become more favorable for markets. Investor confidence also improved as energy prices eased and geopolitical tensions looked less intense. Even so, the rally has not been smooth, as markets continue to react to oil moves, rate expectations and changing news flow.

Amid 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 Deckers Outdoor Corporation (DECK Quick QuoteDECK - Free Report) , Matador Resources Company (MTDR Quick QuoteMTDR - Free Report) and FactSet Research Systems Inc. (FDS Quick QuoteFDS - Free Report) are worth investing.

Sales growth is one of the easiest ways to judge whether a business is truly expanding. While profits can be affected by accounting adjustments or temporary cost changes, revenues show whether customers are actually buying more of the company’s products or services. Steady sales growth can signal stronger demand, rising market share, better pricing power, or success in entering new markets.

Sales growth can also hint at stronger profits ahead. When sales rise, companies can spread fixed costs over a larger base, which may help improve margins over time. That said, sales growth should never be viewed in isolation. It is more meaningful when compared with competitors, industry trends, and the broader economic backdrop.

The most important factor is the quality of growth. Repeat business and sustainable demand are far more valuable than sales driven by deep discounts, one-time orders, or acquisitions. Companies that can deliver healthy and consistent sales growth across different market conditions are often in a stronger position to generate reliable cash flows, reinvest in the business, and support long-term 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 Buy Now

Goleta, CA-based Deckers Outdoor is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. DECK sells products primarily under three proprietary brands — UGG, HOKA and Other brands (mainly comprised of Teva, AHNU and Koolaburra).

DECK’s expected sales growth rate for fiscal 2027 is 7.3%. Deckers Outdoor carries a Zacks Rank #2 at present. 

Headquartered in Dallas, TX, Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. MTDR’s upstream operations are primarily concentrated in the Delaware and Midland basins.

Matador Resources’ expected sales growth rate for 2026 is 11.2%. MTDR currently sports a Zacks Rank #1.

Norwalk, CT-based FactSet Research is a leading provider of integrated financial information, analytical applications and industry-leading service for the global investment community. FDS derives revenues from subscriptions to products and services such as workstations, analytics, enterprise data, research management and trade execution.

FDS’ sales are expected to rise 5.9% in 2026. FactSet Research carries a Zacks Rank #2 at present.