For Immediate Release
Chicago, IL – December 19, 2018 - Stocks in this week’s article are Synopsys, Inc. (SNPS - Free Report) , American Equity Investment Life Holding Co. (AEL - Free Report) , Monster Beverage Corp. (MNST - Free Report) , AMETEK, Inc. (AME - Free Report) and United Rentals, Inc. (URI - Free Report) .
5 Stocks with Solid Sales Growth to Buy in Bearish Markets
In the current bearish markets, investors often try to undertake complex investment strategies to generate solid returns. But this may not yield desired results all the time. So, using conventional strategies, based on key fundamentals to select stocks, is a safe and sound approach for making profits.
One such strategy is sales growth. Often overlooked by investors in favor of earnings, steady sales growth is vital for survival of business. While earnings are vulnerable in the sense that books can be easily manipulated and inflated, there are very less chances of inflating sales numbers.
The companies that put more emphasis on sales management have a competitive advantage, as strong sales generally get converted into growth. Flat or declining sales growth indicates obstacles and offers limited scope for sustained growth. Stagnant companies may generate near-term profit, but do not ensure enough growth to attract new investors.
Without impressive sales growth, bottom-line improvement will not be sustainable over the long term. While a company can show earnings strength by reducing expenses, a sustainable bottom-line recovery usually requires strong sales growth.
Nonetheless, sales growth in isolation doesn’t indicate much about a company’s future performance. Though it provides investors an insight into product demand and pricing power, a huge sales number is not necessarily translated into 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 in hand and a steady cash flow give a company more flexibility with respect to business decisions and potential investments. Most importantly, an adequate cash position suggests 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/343355/5-stocks-with-solid-sales-growth-to-buy-in-bearish-markets
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