Growing sales is an essential catalyst for stocks because they can be key in share price movements.
The S&P 500’s total sales grew 4% over the past five years through Jan. 30, and its share price gained 59.3% up to $3,283.66 over the same time frame.
The following stocks outperformed the benchmark for the U.S. market in terms of higher sales growth in the observed time period, delivering large share price returns in the range of 75% to 360%.
The past is no guarantee of future performance, but it is undeniable that stocks that have already demonstrated their ability to grow their sales more than the U.S. market have a good foundation to continue producing a positive impact on their share prices.
Wall Street sell-side analysts have also issued recommendation ratings for these stocks that range between hold and overweight.
Church & Dwight
The first company to consider is Church & Dwight Co Inc CHD.
The Ewing, New Jersey-based manufacturer and marketer of household and personal care products has grown its total revenue by 5.1% in the past five years, resulting in an almost 77.3% rise in the share price.
The stock closed at a price of $72.78 per share on Jan. 30 for a market capitalization of $17.9 billion, a price-earnings ratio of 29.8 and a price-sales ratio of 4.3.
According to the Peter Lynch chart, this stock is not cheap.
Wall Street sell-side analysts recommend holding this stock with an average target price of $72.75 per share.
GuruFocus assigned the company a moderate rating of 5 out of 10 for its financial strength and a very high rating of 9 out of 10 for profitability.
Chemed
The second company to consider is Chemed Corporation CHE.
The Cincinnati, Ohio-based company provides hospice and palliative care services to U.S. patients through an ad hoc network of physicians and other professionals. It has grown its total revenue by 4.6% in the past five years, producing an impressive 362.6% gain in the share price.
The stock traded at a price of $481.90 per share at close on Jan. 30 for a market capitalization of $7.7 billion, a price-earnings ratio of 38.2 and a price-sales ratio of 4.3.
The Peter Lynch chart indicates that the stock is not cheap.
Wall Street recommends an overweight rating for this stock with an average target price of $484.75 per share.
GuruFocus assigned the company a very positive financial strength rating of 7 out of 10 and a very high rating of 8 out of 10 for its profitability.
LogMeIn
The third company to consider is LogMeIn Inc LOGM.
Based in Boston, LogMeIn is a provider of a portfolio of cloud-based remote connectivity and software as a service for communication and collaboration, IT management and customer engagement.
The stock has increased its total revenue by almost 52% in the past five years, which determined a 78.8% rise in the share price.
The stock closed at a price of $86.10 per share on Jan. 30 with a market capitalization of $4.2 billion, a price-earnings ratio of 307.4 and a price-sales ratio of 3.47.
The Peter Lynch chart shows that the stock is not cheap.
Wall Street sell-side analysts issued a hold recommendation rating for this stock with an average target price of $81.01 per share.
Disclosure: I have no positions in any securities mentioned in this article.
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