U.S. equities have posted solid gains so far this year despite periodic volatility. Fed policy uncertainty, elevated Treasury yields, renewed Middle East tension, rising oil prices, persistent inflation, tariff concerns and stretched technology valuations have weighed on sentiment. Still, resilient corporate earnings and continued robust investment in AI have provided meaningful support to the market, helping major U.S. indexes remain firmly in positive territory in 2026.

Against this backdrop, the traditional approach to stock selection remains a good idea. Sales growth provides a more reliable basis for evaluating stocks compared with earnings-focused metrics. In this regard, stocks like Globus Medical, Inc. (GMED Quick QuoteGMED - Free Report) , NetApp, Inc. (NTAP Quick QuoteNTAP - Free Report) and Assurant Inc. (AIZ Quick QuoteAIZ - Free Report) are worth buying.

Sales growth is a key indicator of a company’s underlying business strength, reflecting customer demand and its ability to sell products or services. Sustained revenue growth will likely signal favorable industry trends, market share gains, pricing power, successful product launches, or expansion into new markets and customer segments. Higher sales can also improve operating leverage by spreading fixed costs across a larger revenue base, supporting margin expansion and profitability. 

However, revenue growth must be assessed alongside industry conditions, competitor performance, pricing trends, customer mix and the broader economy. Its quality also matters: recurring revenues, repeat purchases, volume-driven gains and resilient demand are generally more durable than temporary boosts. Companies that consistently generate high-quality sales growth are often better positioned to produce stable cash flows, fund expansion, strengthen competitive advantages and deliver sustainable shareholder returns.

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 Strong Sales Growth to Buy

Based in Audubon, PA, Globus Medical is a medical device company that develops and commercializes healthcare solutions for patients with musculoskeletal disorders. GMED has sales operations across 65 countries and sells through a mix of direct sales representatives and independent distributors.

GMED’s expected sales growth rate for 2026 is 8.8%. Globus Medical sports a Zacks Rank #1 at present. 

Based in San Jose, CA, NetApp provides enterprise storage as well as data management software and hardware products and services. NTAP assists enterprises in managing multiple cloud environments, adopting next-generation technologies like AI, Kubernetes and contemporary databases, and navigating the complexity brought about by the development of data and cloud usage.

NTAP’s expected sales growth rate for fiscal 2027 is 18.6%. NetApp currently carries a Zacks Rank #2.

Headquartered in New York, Assurant is a global provider of risk management solutions in the housing and lifestyle markets. AIZ safeguards and services connected devices, homes, automobiles and commercial equipment in partnership with leading brands.

Assurant’s sales are expected to rise 8.5% in 2026. AIZ carries a Zacks Rank #2 at present.