Despite concerns surrounding Big Tech’s substantial investments in artificial intelligence (AI), U.S. equity markets have posted decent gains so far in 2026. However, elevated Treasury yields, fluctuating oil prices, persistent inflation and tariff-related uncertainties have been key headwinds. The Federal Reserve’s interest rate hike and prospects of further monetary tightening have also fueled concerns over tighter financial conditions. Nonetheless, resilient corporate earnings have helped sustain investor confidence and support the broader market’s upward momentum.

Hence, the traditional approach to stock selection remains a good idea. Sales growth offers a more reliable basis for evaluating stocks than earnings-focused metrics. In this regard, stocks like Element Solutions Inc. (ESI Quick QuoteESI - Free Report) , RTX Corporation (RTX Quick QuoteRTX - Free Report) and Herc Holdings Inc. (HRI Quick QuoteHRI - Free Report) are worth betting on.

Sales growth is an important measure of a company’s operational strength, highlighting the demand for its products or services and its ability to capitalize on market opportunities. Sustained revenue growth often reflects favorable industry conditions, a growing customer base, increased market share, effective pricing strategies, successful product introductions or expansion into new markets. Rising sales can enhance operating leverage by distributing fixed costs across a broader revenue base, potentially driving margin improvement and higher profitability.

However, evaluating sales growth requires a closer look at industry dynamics, competitive advantages, pricing trends, customer diversification and the broader macroeconomic environment. The quality and consistency of revenue expansion are equally crucial, as recurring income streams, customer retention, higher sales volumes and stable underlying demand offer greater visibility into future performance than temporary revenue gains. Companies with a proven ability to generate steady and sustainable sales growth are generally better positioned to strengthen cash flows, reinvest in growth initiatives, reinforce their market presence and deliver long-term value to shareholders.

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 revenue. 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 Buy

Based in Miami Beach, FL, Element Solutions is a leading specialty chemicals provider. ESI offers innovative and differentiated solutions to its customers across a vast spectrum of industries.

Its expected sales growth rate for 2026 is 47.5%. Element Solutions carries a Zacks Rank #2 at present. 

Based in Arlington, VA, RTX Corporation is an aerospace and defense company, providing advanced systems and services for commercial, military and government customers worldwide. The company’s reportable segments are Collins Aerospace, Pratt & Whitney and Raytheon. 

Its expected sales growth rate for 2026 is 8.8%. RTX currently carries a Zacks Rank #2.

Headquartered in Bonita Springs, FL, Herc Holdings is a leading equipment rental supplier in North America that provides a full-line portfolio of general and specialty equipment. HRI offers ancillary services such as equipment transport, rental protection, cleaning, refueling, training and on-site support.

Its sales are expected to rise 16.1% in 2026. Herc Holdings sports a Zacks Rank #1 at present.