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Zacks.com featured highlights Methanex, Carlisle Companies, Huntington Ingalls Industries, Cheniere Energy and Vistra
Zacks Equity Research
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For Immediate Release

Chicago, IL – May 27, 2022 – Stocks in this week’s article are Methanex Corp. MEOH, Carlisle Companies CSL, Huntington Ingalls Industries, Inc. HII, Cheniere Energy Inc. LNG and Vistra Corp. VST.

5 Stocks with Robust Sales Growth to Counter Volatile Markets

Given the extremely volatile markets, it has become increasingly difficult for investors to select stocks and generate robust returns. Markets are currently bearing the brunt of the ongoing Russia-Ukraine conflict and unprecedented inflation numbers.

Thus, amid such a scenario, a conventional stock picking strategy is useful. One such method is selecting stocks with steady sales growth. In this regard, stocks like Methanex Corp., Carlisle Companies, Huntington Ingalls Industries, Inc., Cheniere Energy Inc. and Vistra Corp. are worthy bets.

Steady sales growth holds the key to survival in an ever-changing and highly competitive business environment. It is worth keeping in mind that when companies incur losses, although temporarily, they are valued based on their revenues, as top-line growth (or decline) is usually an indicator of a company's future earnings performance.

A company can improve earnings by resorting to expense control measures while maintaining stable revenues. However, sustainable bottom-line growth invariably requires higher revenues. Hence, the Price-to-Sales (P/S) ratio can be an apt metric for stock valuation. The importance of this metric lies in the fact that management has limited scope to manipulate revenues, unlike earnings.

While sales growth provides investors an understanding of product demand and pricing power, it doesn't reflect whether the company is operating efficiently. A huge sales number does not necessarily convert into profits.

Hence, considering a company's cash position and its sales can be a more dependable strategy. Significant cash in hand and steady cash flow give a company more flexibility with respect to business decisions and investments.

Here are five of the 13 stocks that qualified the screening:

Vancouver, BC-based Methanex is the world's largest supplier of methanol. MEOH currently operates production sites in New Zealand, the United States, Trinidad and Tobago, Egypt, Canada and Chile.

Methanex's expected sales growth rate for 2022 is 5.8%. The stock currently carries a Zacks Rank #2.

Scottsdale, AZ -based Carlisle is a diversified, global portfolio of niche brands and businesses with highly engineered and high-margin products. CSL is engaged in the design, manufacture and sale of a wide range of roofing and waterproofing products, engineered products and finishing equipment.

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