5 Stocks With Robust Sales Growth to Buy Amid Tariff Headwinds

Core Viewpoint - The current market environment is characterized by heightened volatility due to the recent announcement of "Liberation Day" tariffs by President Donald Trump, which has initiated a new trade war and created uncertainty regarding its impact on the U.S. economy and Federal Reserve policy [1] Group 1: Stock Selection Criteria - The conventional method of selecting stocks emphasizes the importance of steady sales growth, with companies like Meritage Homes Corporation, Zoom Communications Inc., Edison International, Super Micro Computer Inc., and Coherent Corp. identified as potential investment opportunities [2] - Evaluating a company's revenue growth is crucial, as increasing sales indicate potential for expanding the customer base, while stagnant or declining sales may signal underlying challenges [3] - Robust revenue growth is essential for long-term profitability, as consistent sales increases are necessary for sustained bottom-line expansion [4] Group 2: Financial Health Assessment - Sales growth alone does not provide a complete picture of a company's financial health; assessing cash position alongside revenues is a more effective investment strategy [5] - A strong cash balance and steady cash flow offer flexibility for strategic decisions, operational stability, and future investments [5] Group 3: Stock Screening Parameters - Stocks are shortlisted based on criteria such as 5-Year Historical Sales Growth (%) greater than the industry average and Cash Flow exceeding $500 million [6] - Additional factors include a Price-to-Sales (P/S) Ratio lower than the industry average, and positive changes in sales estimate revisions compared to the industry [7] - Operating Margin (average over the last five years) greater than 5% and Return on Equity (ROE) greater than 5% are also important metrics for evaluating stock potential [8][9] Group 4: Featured Stocks with Sales Growth - Meritage Homes is expected to have a sales growth rate of 5% for 2025 and currently holds a Zacks Rank of 2 [10] - Zoom Communications anticipates a sales growth rate of 2.7% for 2025, also holding a Zacks Rank of 2 [11] - Edison International's sales are projected to rise by 2.2% in 2025, with a Zacks Rank of 2 [12] - Super Micro Computer is expected to see a significant sales growth of 59.2% for 2025, maintaining a Zacks Rank of 2 [13] - Coherent is projected to experience a 21% increase in sales for fiscal 2025, currently holding a Zacks Rank of 2 [14]