U.S. equities recorded solid gains in the first half of 2026 despite a challenging investment backdrop. Market sentiment was periodically weighed down by escalating tensions in the Middle East, oil price volatility, tariff-related ambiguity, persistent inflation concerns and apprehension over elevated artificial intelligence (AI)-driven valuations. Nevertheless, resilient economic activity, robust corporate earnings, renewed enthusiasm for AI and easing geopolitical concerns supported investor confidence and helped sustain the broader market rally.
In such a situation, 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 Flowserve Corporation FLS, Micron Technology MU and Duke Energy Corporation DUK are worth considering.
Sales growth is one of the most dependable measures of a company’s underlying business momentum. Although earnings may be influenced by several factors, revenues provide a clearer indication of customer demand and the company’s capacity to sell more products or services. Sustained sales growth can reflect favorable end-market conditions, market-share gains, pricing power, successful product introductions, or expansion into new geographies and customer segments.
Sales growth can also establish a stronger foundation for improved profitability. As sales rise, companies may spread fixed costs across a broader revenue base, enhancing operating leverage and supporting margin expansion over time. Still, sales growth should not be evaluated in isolation. It is most informative when considered alongside industry trends, peer performance, pricing conditions, customer mix and the broader macroeconomic backdrop.
The quality and sustainability of sales growth are equally critical. Recurring revenues, repeat purchases, volume-led gains and durable demand are generally more valuable than growth driven by temporary factors. Companies that consistently achieve high-quality sales growth across market cycles are often better equipped to generate reliable cash flows, reinvest in operations, reinforce their competitive standing and deliver sustainable 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 Buy Now
Based in Irving, TX, Flowserve is a leading manufacturer and aftermarket service provider of comprehensive flow control systems globally. FLS develops and manufactures precision-engineered flow control equipment, such as pumps, valves and seals, for critical service applications that require high reliability.
Flowserve’s expected sales growth rate for 2026 is 3.4%. FLS carries a Zacks Rank #2 at present.
Based in Boise, ID, Micron is one of the leading worldwide providers of semiconductor memory solutions. Through global brands, namely Micron, Crucial and Ballistix, MU manufactures and markets high-performance memory and storage technologies.
MU’s expected sales growth rate for fiscal 2026 is 234.4%. Micron currently sports a Zacks Rank #1.
Charlotte, NC-based Duke Energy is a diversified energy company. DUK has a wide portfolio of domestic and international, natural gas and electric and regulated and unregulated businesses which supply, deliver and process energy in North America and selected international markets.
DUK’s sales are expected to rise 6.3% in 2026. Duke Energy carries a Zacks Rank #2 at present.
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Duke Energy Corporation (DUK): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).