U.S. equities have remained resilient so far this year, although performance has been highly uneven. After rebounding from early-period volatility, markets have pushed higher, backed by solid corporate earnings, AI-led optimism and a still-supportive economic backdrop. Offsetting these are broader geopolitical and macroeconomic concerns like the Federal Reserve’s hawkish stance, Treasury-yield swings, oil-price volatility, geopolitical risks, particularly tensions in the Middle East, and evolving trade policies.
Amid such an operating environment, the traditional way of selecting stocks is a good idea. Sales growth provides a more reliable view for evaluating stocks compared with earnings-focused metrics. In this regard, stocks like CACI International Inc. CACI, Globe Life Inc. GL and Knight-Swift Transportation Holdings Inc. KNX are worth buying.
Sales growth is among the most reliable indicators of a company’s underlying business momentum. While earnings can be affected by cost structures, accounting items and other non-operating factors, revenues offer a clearer view of customer demand and the company’s ability to sell more products or services. Sustained sales growth may signal healthy end-market conditions, market-share gains, pricing power, successful product launches, or expansion into new geographies and customer segments.
Revenue growth can also provide a foundation for stronger profitability. As sales increase, companies may be able to spread fixed costs across a larger revenue base, improving operating leverage and supporting margin expansion over time. Yet, sales growth should not be assessed in isolation. It is most meaningful when viewed alongside industry trends, peer performance, pricing dynamics, customer mix and the broader macroeconomic environment.
The quality and durability of sales growth are equally important. Recurring revenues, repeat purchases, volume-driven gains and sustainable demand are generally more valuable than growth fueled by temporary factors. Companies that consistently deliver high-quality sales growth across market cycles are often better positioned to generate dependable cash flows, reinvest in the business, strengthen their competitive position and create long-term shareholder value.
Selecting the Potential Winning Stocks
To shortlist stocks with impressive sales growth and a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow of more than $500 million as our main screening parameters.
But sales growth and cash strength are not the absolute criteria for selecting stocks. Hence, we have added other factors to arrive at a winning strategy.
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 (four weeks) greater than X-Industry: Estimate revisions, better than the industry, are often seen to trigger an increase in stock price.
Operating Margin (average last five years) greater than 5%: The 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.
Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is translated into profits and the company is not hoarding cash. A high ROE means that 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 Stocks With Solid Sales Growth to Invest In
Based in Reston, VA, CACI International delivers IT applications and infrastructure to improve communications and secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. CACI earns its revenues through four customer groups: Department of Defense, Intelligence Community, Federal Civilian Agencies and Commercial and Other.
CACI’s expected sales growth rate for fiscal 2027 is 10.6%. CACI International carries a Zacks Rank #2 at present.
Based in McKinney, TX, Globe Life is an insurance holding company for a group of insurance companies that market primarily individual life and supplemental health insurance to lower-middle to middle-income households throughout the United States. GL’s business is organized into four segments: Life Insurance, Supplemental Health Insurance, Annuities and Investments.
Globe Life's expected sales growth rate for 2026 is 6.3%. GL currently carries a Zacks Rank #2.
Phoenix, AZ-based Knight-Swift Transportation is one of North America's largest and most diversified freight transportation companies, providing multiple full truckload, LTL, intermodal and other complementary services. KNX utilizes a nationwide network of business units and terminals across the United States and Mexico to serve customers throughout North America.
KNX’s sales are expected to rise 7.1% in 2026. Knight-Swift Transportation carries a Zacks Rank #2 at present.
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Knight-Swift Transportation Holdings Inc. (KNX): Free Stock Analysis Report
CACI International, Inc. (CACI): Free Stock Analysis Report
Globe Life Inc. (GL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).