U.S. equities have advanced strongly recently, with the S&P 500 trading near record highs. Gains have been driven by mega-cap technology, AI and semiconductor stocks, stronger-than-expected first-quarter earnings, improving revisions and resilient economic data. Investor sentiment has also benefited from expectations of eventual policy normalization and easing bearish positioning. However, risks like tariff uncertainty, Middle East tensions, oil-price volatility, sticky inflation, a potentially higher-for-longer monetary policy stance and stretched valuations persist. 

Amid such an operating environment, 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. Hence, stocks like Chord Energy Corporation (CHRD Quick QuoteCHRD - Free Report) , Bank of America Corporation (BAC Quick QuoteBAC - Free Report) and Churchill Downs Incorporated (CHDN Quick QuoteCHDN - Free Report) are worth investing in.

Sales growth is one of the clearest indicators of whether a business is truly expanding. While earnings can be influenced by accounting adjustments, tax effects, cost timing, or temporary margin swings, revenues reflect the basic question of whether customers are buying more of a company’s products or services. Steady top-line growth can point to healthy demand, market-share gains, stronger pricing power, successful product launches, or expansion into new geographies and customer segments.

Revenue growth can also lay the foundation for stronger profitability. As sales increase, companies may be able to spread fixed costs across a larger base, improving operating leverage and margins over time. However, sales growth should not be evaluated in isolation. It is most useful when compared with industry trends, peer performance, pricing conditions, and the broader economic environment.

The quality and durability of sales growth matter. Recurring revenues, repeat purchases, volume growth, and sustainable demand are generally more valuable than sales boosted by different means. Companies that can deliver steady, high-quality sales growth across market cycles are often better positioned to generate reliable cash flows, reinvest in the business, strengthen their competitive position, and support long-term shareholder value.

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 Robust Sales Growth to Consider

Houston, TX-based Chord Energy is a leading E&P entity in the Williston Basin. CHRD’s asset portfolio boasts approximately 1.3 million net acres, with a production capacity of 277,000 barrels of oil equivalent per day.

CHRD’s expected sales growth rate for 2026 is 2.2%. Chord Energy sports a Zacks Rank #1 at present. 

Headquartered in Charlotte, NC, Bank of America is one of the largest financial holding companies in the United States. BAC provides a diverse range of banking and non-banking financial services and products through 3,540 financial centers and 14,902 automated teller machines (ATMs) across the country.

Bank of America’s expected sales growth rate for 2026 is 9.4%. BAC currently carries a Zacks Rank #2.

Louisville, KY-based Churchill Downs is a diversified gaming, entertainment and wagering company. CHDN owns and operates live and historical racing venues, online wagering platforms and regional casino gaming properties across the United States. 

CHDN’s sales are expected to rise 3.1% in 2026. Churchill Downs carries a Zacks Rank #2 at present.