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Do you consider a company's sales trends when choosing among stocks? For ideas on how to start your own sales analysis, we ran a screen.

We began by screening for stocks trading under $5 a share that have outperformed the market over the last quarter, with at least 10% quarterly return.

We then screened for strong sales trends by comparing their growth in revenue to growth in inventory over the last year. We screened for stocks with positive sales trends, with faster growth in revenue than inventory over the last year. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered an encouraging sign.

To screen for strengthening liquidity, we also only focused on those companies with inventory decreasing as a percent of current assets.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall.

Do you think these companies have strong sales trends? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. Xinyuan Real Estate Co., Ltd. (NYSE:XIN): Engages in residential real estate development in China. Market cap at $207.85M, most recent closing price at $2.85. Performance over the last quarter at 18.26%. Revenue grew by 45.62% during the most recent quarter ($199.77M vs. $137.19M y/y). Inventory grew by 7.95% during the same time period ($768.65M vs. $712.05M y/y). Inventory, as a percentage of current assets, decreased from 66.23% to 56.24% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

2. Builders FirstSource, Inc. (NASDAQ:BLDR): Engages in the manufacture and supply of structural and related building products for residential new construction primarily in the southern and eastern United States. Market cap at $342.25M, most recent closing price at $3.54. Performance over the last quarter at 11.32%. Revenue grew by 34.74% during the most recent quarter ($219.39M vs. $162.83M y/y). Inventory grew by 12.81% during the same time period ($82.08M vs. $72.76M y/y). Inventory, as a percentage of current assets, decreased from 31.65% to 25.06% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

3. Headwaters Inc. (NYSE:HW): Provides products, technologies, and services in the building products, construction material, and energy industries primarily in the United States and Canada. Market cap at $269.41M, most recent closing price at $4.41. Performance over the last quarter at 38.24%. Revenue grew by 14.51% during the most recent quarter ($129.63M vs. $113.2M y/y). Inventory grew by -16.02% during the same time period ($35.33M vs. $42.07M y/y). Inventory, as a percentage of current assets, decreased from 24.26% to 21.65% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

4. Mueller Water Products, Inc. (NYSE:MWA): Manufactures and markets a range of water infrastructure, flow control, and piping component system products for use in water distribution networks and water treatment facilities in the United States and Canada. Market cap at $543.64M, most recent closing price at $3.47. Performance over the last quarter at 22.18%. Revenue grew by 6.79% during the most recent quarter ($251.5M vs. $235.5M y/y). Inventory grew by -29.93% during the same time period ($190.8M vs. $272.3M y/y). Inventory, as a percentage of current assets, decreased from 44.46% to 31.84% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 4 Outperforming Stocks Under $5 With Strong Inventory Trends