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Zacks.com highlights: Stryker, SS&C Technologies Holdings, Fifth Third Bancorp, AMETEK and Xcel Energy

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For Immediate Release

Chicago, IL – June 5, 2018 - Stocks in this week’s article include: Stryker Corp. (SYK - Free Report) , SS&C Technologies Holdings, Inc. (SSNC - Free Report) , Fifth Third Bancorp (FITB - Free Report) , AMETEK, Inc. (AME - Free Report) and Xcel Energy Inc. (XEL - Free Report) .

Screen of the Week of Zacks Investment Research:

Solid Sales Growth Makes These 5 Stocks Worth Betting On

Investors often fail to consider sales growth as a dependable metric when it comes to selecting stocks. This might be because of their preconceived notion that a company’s price performance is typically sensitive to its earnings momentum. But betting on stocks depending totally on such a perception may not prove worthwhile.

It’s worth keeping in mind that in cases when companies incur a loss, albeit transitorily, they are valued on revenues and not earnings, as top-line growth (or decline) usually reflects a company’s future earnings performance. Notably, in contrast with price to earnings and price to book value ratios, which can turn negative and cease to be relevant, the price-to-sales (P/S) ratio is available even for firms that have hit choppy waters.

Also, a company can improve earnings by resorting to expense saving measures while maintaining stable revenues. However, superior profits could be achieved through continued revenue growth.

Further, earnings and book value are largely influenced by several factors including accounting decisions tied with depreciation, significant charges and inventory. But there are limited opportunities to manipulate sales, which further underscores the importance of P/S ratio.

A huge sales figure does not necessarily convert to profits. Hence, considering a company’s cash position along with its sales number can prove to be more prudent. Substantial cash in hand and a steady cash flow lend a company more flexibility with respect to business decisions and investments.

And that's what we're screening for today…

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/306264/solid-sales-growth-makes-these-5-stocks-worth-betting-on-now

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.



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