5 Stocks With Solid Sales Growth As Markets Touch Record Highs

Core Insights - The article emphasizes the importance of sales growth over earnings when evaluating stocks, suggesting that steady sales growth indicates strong demand and a durable business model [2][3][10] - A selection of stocks with robust sales growth and high cash balances is recommended, including StoneCo, Garmin, Assurant, VICI Properties, and Duke Energy, all of which show promising sales growth for 2025 [10][11][12][13][14][15] Sales Growth and Cash Flow - Sales growth is preferred over earnings as it reflects actual demand and provides visibility into a company's business model [3][5] - Constant sales growth leads to predictable cash flows, allowing companies to reinvest, expand, or return capital to shareholders without excessive debt reliance [5] Stock Selection Criteria - Stocks are shortlisted based on criteria such as 5-Year Historical Sales Growth greater than industry average and Cash Flow exceeding $500 million [6] - Additional metrics include a Price/Sales (P/S) Ratio lower than the industry average, positive changes in sales estimate revisions, operating margins above 5%, and Return on Equity (ROE) greater than 5% [7][8][9] Recommended Stocks - StoneCo Ltd. (STNE): Expected sales growth of 9.8% for 2025, currently holds a Zacks Rank 1 [11] - Garmin Ltd. (GRMN): Anticipated sales growth of 12.3% for 2025, currently holds a Zacks Rank 2 [12] - Assurant Inc. (AIZ): Projected sales growth of 5.7% for 2025, currently holds a Zacks Rank 2 [13] - VICI Properties Inc. (VICI): Expected sales growth of 4% for 2025, currently holds a Zacks Rank 2 [14] - Duke Energy Corporation (DUK): Anticipated sales growth of 4.6% for 2025, currently holds a Zacks Rank 2 [15]