Zacks.com Featured Highlights Include: Keurig Dr, Cigna, General Dynamics, Lennar And NCR
Zacks Investment Research | Oct 11, 2019 12:14AM ET
For Immediate Release
Chicago, IL – October 11, 2019 - Stocks in this week’s article are Keurig Dr Pepper (NYSE:KDP) , Cigna (NYSE:CI) , General Dynamics (NYSE:GD) , Lennar (NYSE:LEN) and NCR Corp. (NYSE:NCR) .
Attractive Sales Growth Make These 5 Stocks Worth Owning
Investors often overlook sales growth while selecting stocks, as a company’s stock price is typically sensitive to its earnings momentum. Nonetheless, earnings are quite vulnerable in the sense that books can be easily manipulated and inflated. That’s why sales should always be considered.
Sales growth is an important indicator of a company's health and ability to sustain its business. It provides investors an insight into product demand and pricing power. The main advantage is that sales figures are generally not manipulated and are less volatile than earnings.
Without some top-line growth, bottom-line improvement may not be sustainable in the long term. While a company can show earnings strength by lowering costs, a sustainable bottom-line recovery usually requires steady sales growth.
Focusing solely on sales growth is not enough though. A healthy sales growth rate is certainly a positive indicator for picking good stocks, but it does not ensure profits. Hence, taking into consideration a company’s cash position along with its sales number can be a more dependable strategy.
Substantial cash on hand and a steady cash flow give a company more flexibility with respect to business decisions and potential investments. Cash also enables a company to endure market downturns. Most importantly, a sufficient cash position indicates that revenues are being channelized in the right direction.
For the rest of this Screen of the Week article please visit Zacks.com at: Zacks Investment Research
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