Buy These 5 Stocks With Solid Sales Growth to Counter Uncertainty

Markets started 2025 on a positive note but have since faced considerable volatility. Tariff-related headwinds and geopolitical uncertainty persist, yet expectations for a September rate cut have been gaining momentum amid a softening labor market and the inflationary effects of trade policies. While investors are re-entering the market, identifying the right stocks in this environment remains challenging.

Amid such an operating environment, sales growth provides a more dependable lens for evaluating stocks than traditional earnings-focused metrics. In this context, Vertiv Holdings Co VRT, The Progressive Corporation PGR, Bank OZK OZK, TransUnion TRU and The Mosaic Company MOS are worth investing in.

When evaluating a company, investors often give preference to revenue over earnings. Sales growth points directly to demand for a company’s products and services, signaling market relevance, pricing power and competitive positioning. In an environment where inflation, interest rates and consumer sentiment remain fluid, revenue expansion demonstrates that a business can adapt and still capture incremental market share. On the other hand, earnings can often be influenced by temporary cost-cutting, share buyback, or accounting adjustments, which may not reflect the sustainability of a company’s performance. 

Moreover, strong revenue trajectories typically translate into healthier cash flows, which give management the flexibility to reinvest in innovation, pursue strategic acquisitions or return capital to shareholders without overreliance on debt. Strong cash reserves and healthy cash flow offer the flexibility to navigate challenges, invest in growth opportunities and maintain operational stability.

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%: 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.

5 Stocks With Strong Sales Growth to Bet on Now

Westerville, OH-based Vertiv is a leading global provider of critical digital infrastructure and services for data centers, communication networks and commercial and industrial environments. VRT designs, manufactures, installs, maintains and services a broad portfolio of hardware, software and integrated solutions.

VRT’s expected sales growth rate for 2025 is 24.5%. Vertiv carries a Zacks Rank #2 at present.

Progressive, headquartered in Mayfield Village, OH, is a leading independent agency writer of private passenger auto coverage and the market share leader for motorcycle products since 1998. PGR employs more than 40,000 people globally and has offices across six continents.

Progressive’s expected sales growth rate for 2025 is 16.4%. PGR currently carries a Zacks Rank #2.

Headquartered in Little Rock, AR, Bank OZK is a bank holding company registered under the Bank Holding Company Act of 1956. OZK conducts operations through 250 offices in nine states. 

Bank OZK’s sales are expected to rise 4.2% in 2025. OZK carries a Zacks Rank #2 at present.

Chicago, IL-based TransUnion is one of the leading global providers of risk and information solutions to businesses and consumers. TRU provides consumer reports, risk scores, analytical services and decision-making capabilities to businesses. 

TransUnion’s expected sales growth for 2025 is 6.9%. TRU, at present, carries a Zacks Rank #2.

Tampa, FL-based Mosaic Company is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry. MOS is the biggest integrated phosphate producer globally and is among the four largest potash producers in the world.

Mosaic Company’s sales are expected to rise 16.4% in 2025. MOS sports a Zacks Rank #1 at present.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance

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