Zacks.com Featured Highlights Include: Syneos, Carlisle, United Technologies, Ares Capital And Principal Financial
Zacks Investment Research | Sep 02, 2019 09:29PM ET
For Immediate Release
Chicago, IL – September 3, 2019 - Stocks in this week’s article are Syneos Health, Inc. (NASDAQ:SYNH) , Carlisle Companies Inc. (NYSE:CSL) , United Technologies Corp. (NYSE:UTX) , Ares Capital Corp. (NASDAQ:ARCC) and Principal Financial Group, Inc. (NASDAQ:PFG) .
Add These 5 Stocks with Solid Sales Growth to Your Portfolio
Strong sales growth is one of the most important characteristics of potential winners in the stock market. The companies putting more emphasis on sales management have a competitive advantage, as strong sales generally get converted to growth.
Revenues are often more closely monitored than earnings when assessing 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 rise indicates obstacles for the company and offers limited scope for sustained growth. Stagnant 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 reducing expenses, a sustainable bottom-line recovery usually requires robust sales growth.
However, sales growth in isolation doesn’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.
Hence, 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: Zacks Investment Research
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