All posts from Zacks
Zacks in Our Research. Your Success., featured highlights: Hasbro, American Airlines Group, Intercontinental Exchange, Lam Research and Stryker

For Immediate Release

Chicago, IL – July 18, 2017 - Stocks in this week’s article include Hasbro, Inc. (NASDAQ: HAS Free Report ), American Airlines Group Inc. (NASDAQ: AAL Free Report ), Intercontinental Exchange, Inc. (NYSE: ICE Free Report ), Lam Research Corporation (NASDAQ: LRCX Free Report ) and Stryker Corporation (NYSE: SYK Free Report ).

Screen of the Week of Zacks Investment Research:

5 Stocks with Impressive Sales Growth Worth Investing In

A number of factors influence investment decisions, particularly when it comes to choosing stocks. While investors with a high-risk appetite looking for higher returns seek sophisticated and complex strategies, those with a low-risk appetite prefer conventional investment strategies based on solid fundamentals.

Conventional strategies can be banked upon in bearish markets as well. We have picked one such strategy that is focused on the sales growth of a company.

Sales Growth – A Key Financial Indicator

In the current market scenario, characterized by changing customer preferences and habits, evolving needs, demographic changes and an extremely competitive environment, continued sales growth is crucial for the survival of any business. Companies are always looking out for ways to boost their marketing initiatives to boost sales.

Sales are often more closely monitored than earnings when assessing the growth of a business. It’s worth keeping in mind that in cases where companies incur a loss, albeit temporarily, they are valued on their revenues, as top-line growth (or decline) is usually an indicator of a company’s future earnings performance.

Hence, the Price-to-Sales (P/S) ratio can turn out to be a suitable metric for stock valuation. It remains a key stock selection criteria keeping in mind that management usually has limited opportunities to tamper with revenues as they can with earnings. Thus, the P/S ratio is subject to lesser manipulation than the Price-to-Earnings ratio.

Sales growth alone, however, cannot ensure success. Consideration of a company’s cash position along with its sales number can be a more reliable strategy. Substantial cash in hand and a steady cash flow give a company more flexibility with respect to business decisions and investments.

Choosing the Winning Stocks

In order to shortlist stocks that have witnessed impressive sales growth along with a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow greater than $500 million as our main screening parameters.

But sales growth and cash strength are not the absolute criteria for selecting stocks. So, we added certain other factors to arrive at a winning strategy.

Price-to-Sales (P/S) Ratio less than X-Industry: This metric determines the value placed on each dollar of a company’s revenues. The lower the ratio, the better it is for picking a stock since the investor is paying less for each unit of sales.

% Change F1 Sales Estimate Revisions (4 Weeks) greater than X-Industry: Better-than-industry estimate revision has often been seen to trigger an increase in the stock price.

Operating Margin (Average Last 5 years) greater than 5%: Operating margin measures how much every dollar of a company's sales translates into profits. A high ratio indicates that the company has good cost control and sales are increasing faster than costs, an optimal situation for the company.

Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is being translated into profits and the company is not hoarding cash. A high ROE means the company is spending wisely and is in all likelihood profitable.

Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.

Here are five of the 16 stocks that qualified the screening:

Hasbro, Inc. (NASDAQ:HAS Free Report ) operates as a play and entertainment company. This Pawtucket, RI-based company currently has long-term expected EPS growth rate of 11.7% and carries a Zacks Rank #2.

American Airlines Group Inc. (NASDAQ:AAL Free Report ), based in Fort Worth, TX, operates as a network air carrier. It has long-term expected earnings per share (EPS) growth rate of 2.8%. The company sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here .

Based in Atlanta, GA, Intercontinental Exchange, Inc. (NYSE:ICE Free Report ) operates regulated exchanges, clearing houses, and listings venues for financial and commodity markets. The company has a long-term expected EPS growth rate of 11.2% and carries a Zacks Rank #2.

Lam Research Corporation (NASDAQ:LRCX Free Report ) designs, manufactures, markets, refurbishes, and services semiconductor processing systems used in the fabrication of integrated circuits. This Fremont, CA-based company has a long-term expected EPS growth rate of 16.4% and a Zacks Rank #1.

Headquartered in Kalamazoo, MI, Stryker Corporation (NYSE: SYK Free Report ) operates as a medical technology company. The company currently has a long-term expected EPS growth rate of 9.6% and a Zacks Rank #2.

Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today .

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: .

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don’t wait for the market to get better before you decide to do better. Start learning how to be a better trader today:

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .

Get the full Report on HAS - FREE

Get the full Report on AAL - FREE

Get the full Report on ICE - FREE

Get the full Report on LRCX - FREE

Get the full Report on SYK - FREE

Follow us on Twitter:

Join us on Facebook:">

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Contact: Jim Giaquinto


Phone: 312-265-9268


Visit: provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. .

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Hasbro, Inc. (HAS): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE): Free Stock Analysis Report
Lam Research Corporation (LRCX): Free Stock Analysis Report
Stryker Corporation (SYK): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research