For Immediate Release
Chicago, IL – December 6, 2021 – Stocks in this week’s article are Target Corporation TGT, Olin Corporation OLN, Callon Petroleum Company CPE, Cboe Global Markets, Inc. CBOE and Nutrien Ltd. NTR.
Add These 5 Strong Sales Growth Stocks to Your Portfolio Now
When it comes to picking stocks, investors often opt for complex investment strategies to generate higher returns. But with ever-changing market dynamics, this may not yield desired results every time. So, using conventional strategies based on key fundamentals to choose stocks is always wise.
One such strategy is sales growth. Maintaining steady sales growth is the key to survival for any business. Sales growth remains a vital measure for any corporate house, as it is important for growth projections and strategic decision-making.
Hence, when companies incur losses for a temporary period, they are valued based on their revenues, as top-line growth (or decline) is usually an indicator of a company’s future earnings performance. Also, in contrast to price to earnings and price to book value ratios, which can turn negative and cease to be relevant, price-to-sales (P/S) ratio is available even for companies that have hit choppy waters.
Further, profits and book value are primarily influenced by several factors. However, management has limited opportunities to manipulate sales, which further underscores the importance of P/S ratio. Therefore, P/S ratio can serve as a more reliable metric for stock valuation.
Focusing solely on sales growth is, however, not enough. Consideration of a company’s cash position along with its sales can be a more dependable strategy. Significant cash in hand and 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/1834936/add-these-5-strong-sales-growth-stocks-to-your-portfolio-now
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Target Corporation (TGT): Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE): Free Stock Analysis Report
Olin Corporation (OLN): Free Stock Analysis Report
Callon Petroleum Company (CPE): Free Stock Analysis Report
Nutrien Ltd. (NTR): Free Stock Analysis Report
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