Zacks.com Featured Highlights Include: Chipotle Mexican Grill, Vertex Pharmaceuticals, ResMed, Spirit Airlines And OneMain
Zacks Investment Research | Feb 11, 2020 09:32PM ET
For Immediate Release
Chicago, IL – February 12, 2020 – Stocks in this week’s article are Chipotle Mexican Grill, Inc. (NYSE:CMG) , Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) , ResMed Inc. (NYSE:RMD) , Spirit Airlines, Inc. (NYSE:SAVE) and OneMain Holdings, Inc. (NYSE:OMF) .
Buy These 5 Stocks with Attractive Sales Growth Right Now
Robust 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 growth of a business. This is because investors want to make sure that the business has the capability of generating more sales over time.
Flat or declining sales increase indicates obstacles at the company and offers limited scope for sustained growth. Such companies may generate near-term profit, but do not ensure enough growth to attract new investors.
Without impressive top-line growth, bottom-line improvement may not be sustainable over the long term. While a company can show earnings strength by lowering costs, sustainable bottom-line improvement usually requires solid sales growth.
Nonetheless, sales growth alone doesn’t indicate much about a company’s prospects. Though it provides investors an insight into product demand and pricing power, a huge sales number is not always translated into profits.
So, taking into consideration a company’s cash position and 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.
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