For Immediate Release
Chicago, IL - January 22, 2019- Stocks in this week's article include Carlisle Companies Inc. CSL , Berry Global Group, Inc. BERY , Synopsys, Inc. SNPS , VMware, Inc. VMW and Alaska Air Group, Inc. ALK . 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:
Add These 5 Stocks with Solid Sales Growth to You Portfolio
Strong sales growth is one of the most important characteristics of potential winners in the stock market. The companies that put more emphasis on sales management have a competitive advantage, as strong sales generally get converted into growth.
Revenues are often more closely monitored than earnings when assessing the growth of a business. This is because investors want to make sure whether a business has the capability of generating more sales over time to cater to an expanding customer base.
Flat or declining sales growth indicates obstacles for the company and offers lower scope for sustained growth. Stagnant companies may generate near-term profit, but do not ensure enough growth to attract new investors.
Without impressive revenue growth, the bottom-line improvement may not be sustainable over the longer term. While a company can show earnings strength by reducing expenses, a sustainable bottom-line recovery usually requires robust sales growth.
But sales growth alone can'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.
So, 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/348568/add-these-5-stocks-with-solid-sales-growth-to-your-portfolio
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