For Immediate Release
Chicago, IL – April 26, 2019 - Stocks in this week’s article are PepsiCo (NASDAQ:PEP) , Raymond James (NYSE:RJF) , Kansas City Southern (NYSE:KSU) , Fortive Corp. (NYSE:FTV) and Abbott Laboratories (NYSE:ABT) .
Solid Sales Growth Makes These 5 Stocks Worth Buying Now
Investors often do not consider sales growth as a dependable metric when it comes to selecting stocks. This might be because of their preconceived notion that a company’s stock price is typically sensitive to its earnings momentum. However, betting on stocks based on such a perception may not prove worthwhile.
It’s worth keeping in mind that when companies incur a loss, albeit temporarily, they are valued on their sales not and earnings. This is because top-line growth (or decline) is usually an indicator of a company’s future earnings performance.
Also, in contrast with price to earnings and price to book value ratios, which can turn negative and cease to be relevant, the price-to-sales (P/S) ratio is available even for firms that have hit choppy waters.
Further, a company can improve earnings by resorting to cost control measures while maintaining stable revenues. However, superior profits could be achieved through continued revenue growth. Also, management has limited opportunities to manipulate sales, which further underscores the importance of P/S ratio.
A huge sales number does not necessarily convert into profits. Hence, considering a company’s cash position along with its sales number can prove to be more prudent. Substantial cash in hand and a steady cash flow lend 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/399339/solid-sales-growth-makes-these-5-stocks-worth-buying-now
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Kansas City Southern (KSU): Free Stock Analysis Report
Abbott Laboratories (ABT): Free Stock Analysis Report
Pepsico, Inc. (PEP): Free Stock Analysis Report
Raymond James Financial, Inc. (RJF): Free Stock Analysis Report
Fortive Corporation (FTV): Free Stock Analysis Report
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