For Immediate Release
Chicago, IL – March 30, 2020 - Stocks in this week’s article are The Clorox Co. CLX, Western Digital Corp. WDC, Leidos Holdings, Inc. LDOS, Cincinnati Financial Corp. CINF and New Residential Investment Corp. NRZ.
Buy Stocks with Solid Sales Growth Amidst Pandemic
In challenging times like these, it’s not an easy task to find stocks that are expected to report earnings growth in the near term. One reliable way is to choose stocks based on sales growth.
When companies incur loss, although briefly, they are valued based on their revenues and not earnings. Top-line growth (or decline) is usually an indicator of a company’s future earnings performance.
While price to earnings and price to book value ratios 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.
A company can improve earnings by resorting to cost-control measures, while maintaining stable revenues. However, superior profits can be achieved through steady revenue growth.
Earnings and book value are largely influenced by several factors. However, 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 and 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/838496/buy-stocks-with-solid-sales-growth-amid-coronavirus-pandemic
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Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report
Western Digital Corporation (WDC) : Free Stock Analysis Report
The Clorox Company (CLX) : Free Stock Analysis Report
Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report
New Residential Investment Corp. (NRZ) : Free Stock Analysis Report
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