For Immediate Release
Chicago, IL – April 10, 2019– Stocks in this week’s article include The J. M. Smucker Company (SJM - Free Report) , SS&C Technologies Holdings, Inc. (SSNC - Free Report) , Fifth Third Bancorp (FITB - Free Report) , Equinix, Inc. (REIT) (EQIX - Free Report) and WEX Inc. (WEX - Free Report) . Kevin Matras screens for companies showing their 'first' profit and explains why they are ones to watch.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
5 Top Stocks with Robust Sales Growth Worth Betting on Now
With the ever-changing market dynamics, investors are often tempted to undertake complex investment strategies. But this sometimes may not yield the desired results. So, using conventional strategies, which are based on key fundamentals to select stocks, is always a safe approach to earn sustainable return.
Among several rational and down-to-earth investment strategies, sales growth is one of the most favored.
A steady sales growth is the key to survival for a business in today’s highly competitive environment. Flat or declining sales growth shows obstacles at the company, which will limit scope for sustained growth. Stagnant companies may generate profits for a short period, but they do not ensure enough growth to attract new investors.
Revenues are often more closely monitored than earnings when assessing growth of a business. It’s worth keeping in mind that in cases when companies incur a loss, albeit transitorily, they are valued on their revenues. This is because top-line growth (or decline) is usually an indicator of a company’s future performance.
Therefore, the Price-to-Sales (P/S) ratio can turn out to be an appropriate metric for stock valuation. This metric’s importance further lies in the fact that management has limited opportunities to manipulate revenues, unlike earnings.
Focusing solely on sales growth is, however, not a wise thing to do. A consideration of a company’s cash position along with its sales number can 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 investments.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/373013/5-top-stocks-with-robust-sales-growth-worth-betting-on-now
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