For Immediate Release
Chicago, IL – November 16, 2018 - Stocks in this week’s article are Twitter (TWTR - Free Report) , Lockheed Martin (LMT - Free Report) , Intercontinental Exchange (ICE - Free Report) , CBRE Group (CBRE - Free Report) and Keurig Dr Pepper (KDP - Free Report) .
Buy These 5 Stocks with Sales Growth Amid Volatile Markets
Investors often overlook sales growth while selecting stocks for investment purpose, as a company’s stock price is typically sensitive to its earnings growth. However, earnings are quite vulnerable in the sense that books can be easily manipulated and inflated. That’s why sales should always be taken into consideration.
Sales growth is actually an important indicator of a company's health and ability to sustain its business. It provides investors an insight into product demand and pricing power. The main advantage is that the sales figure is generally not rigged and is less volatile than earnings.
Without some top-line growth, the bottom-line improvement may not be sustainable in the long term. While a company can show earnings strength by lowering expenses, a sustainable bottom-line recovery usually requires continued sales growth.
Focusing solely on sales growth is not enough though. A healthy sales growth rate is certainly a positive indicator for picking good stocks, but it does not ensure profits. Hence, taking into consideration a company’s cash position along with its sales number can prove to be a more dependable strategy.
Substantial cash on hand and a steady cash flow give a company more flexibility with respect to business decisions and potential investments. Cash also enables a company to endure market downturns. Most importantly, a sufficient cash position indicates that revenues are being channelized in the right direction.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/337659/buy-these-5-stocks-with-sales-growth-amid-volatile-markets
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