10 Rallying Large-Caps With Strong Receivable Trends

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 |  Includes: BIIB, CNI, ECA, EIX, EW, HOG, KMB, LNKD, MJN, TDC
by: Kapitall

Do you consider a company's sales trends when evaluating stocks? For ideas on how to start your own sales analysis, we ran a screen you may be interested in.

We began by screening the large-cap sector for stocks rallying above their 20-day, 50-day, and 200-day moving averages, indicating that these stocks have strong upward momentum.

We then screened for those stocks with strong sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables the healthier the company's revenue.

We screened for stocks seeing faster growth in revenue than accounts receivable year-over-year, as well as accounts receivable comprising a smaller portion of current assets over the same time period.

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 stocks will continue to rally higher? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. LinkedIn Corporation (NYSE:LNKD): Operates an online professional network. Market cap at $10.15B, most recent closing price at $98.29. The stock is trading 8.15% above its 20-day moving average, 2.43% above its 50-day MA, and 22.57% above its 200-day MA. Revenue grew by 100.64% during the most recent quarter ($188.46M vs. $93.93M y/y). Accounts receivable grew by 91.25% during the same time period ($116.24M vs. $60.78M y/y). Receivables, as a percentage of current assets, decreased from 32.48% to 14.87% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

2. Teradata Corporation (NYSE:TDC): Provides enterprise data warehousing solutions, including enterprise analytic technologies and services, and integrated marketing software. Market cap at $11.69B, most recent closing price at $69.29. The stock is trading 5.86% above its 20-day moving average, 5.19% above its 50-day MA, and 22.07% above its 200-day MA. Revenue grew by 21.15% during the most recent quarter ($613M vs. $506M y/y). Accounts receivable grew by 6.85% during the same time period ($499M vs. $467M y/y). Receivables, as a percentage of current assets, decreased from 34.16% to 30.92% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

3. Harley-Davidson, Inc. (NYSE:HOG): Produces and sells heavyweight motorcycles, as well as offers motorcycle parts, accessories, and related services. Market cap at $11.44B, most recent closing price at $49.43. The stock is trading 5.19% above its 20-day moving average, 2.88% above its 50-day MA, and 18.25% above its 200-day MA. Revenue grew by 16.72% during the most recent quarter ($1,429.69M vs. $1,224.93M y/y). Accounts receivable grew by 1.84% during the same time period ($1,603.41M vs. $1,574.45M y/y). Receivables, as a percentage of current assets, decreased from 37.75% to 35.52% during the most recent quarter (comparing 3 months ending 2012-04-01 to 3 months ending 2011-03-27).

4. Edwards Lifesciences Corp. (NYSE:EW): Offers products and technologies designed to treat advanced cardiovascular disease worldwide. Market cap at $11.1B, most recent closing price at $96.88. The stock is trading 15.05% above its 20-day moving average, 22.85% above its 50-day MA, and 36.14% above its 200-day MA. Revenue grew by 13.52% during the most recent quarter ($459.2M vs. $404.5M y/y). Accounts receivable grew by -2.12% during the same time period ($346.7M vs. $354.2M y/y). Receivables, as a percentage of current assets, decreased from 30.79% to 29.18% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

5. Canadian National Railway Company (NYSE:CNI): Engages in the rail and related transportation business in North America. Market cap at $35.25B, most recent closing price at $80.81. The stock is trading 4.45% above its 20-day moving average, 4.34% above its 50-day MA, and 10.89% above its 200-day MA. Revenue grew by 12.57% during the most recent quarter ($2,346M vs. $2,084M y/y). Accounts receivable grew by -0.13% during the same time period ($769M vs. $770M y/y). Receivables, as a percentage of current assets, decreased from 44.92% to 40.62% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

6. Mead Johnson Nutrition Company (NYSE:MJN): Distributes, and sells infant formulas, children's nutritional products, and other nutritional products in Asia, Europe, Latin America, and North America. Market cap at $17.48B, most recent closing price at $85.72. The stock is trading 5.90% above its 20-day moving average, 4.80% above its 50-day MA, and 14.07% above its 200-day MA. Revenue grew by 9.65% during the most recent quarter ($986.6M vs. $899.8M y/y). Accounts receivable grew by 3.09% during the same time period ($384M vs. $372.5M y/y). Receivables, as a percentage of current assets, decreased from 23.27% to 21.8% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

7. Encana Corporation (NYSE:ECA): Engages in the exploration for, development, production, and marketing of natural gas and natural gas liquids primarily in Canada and the United States. Market cap at $15.38B, most recent closing price at $20.91. The stock is trading 11.39% above its 20-day moving average, 14.40% above its 50-day MA, and 15.50% above its 200-day MA. Revenue grew by 7.92% during the most recent quarter ($1,799M vs. $1,667M y/y). Accounts receivable grew by -2.83% during the same time period ($1,612M vs. $1,659M y/y). Receivables, as a percentage of current assets, decreased from 67.17% to 27.48% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

8. Biogen Idec Inc. (NASDAQ:BIIB): Develops, manufactures, and markets therapeutics in the areas of neurology, immunology, hemophilia, and oncology in the United States and internationally. Market cap at $33.22B, most recent closing price at $138.66. The stock is trading 7.40% above its 20-day moving average, 8.68% above its 50-day MA, and 22.67% above its 200-day MA. Revenue grew by 7.37% during the most recent quarter ($1,292.01M vs. $1,203.34M y/y). Accounts receivable grew by 1.22% during the same time period ($941.59M vs. $930.22M y/y). Receivables, as a percentage of current assets, decreased from 35.39% to 35.16% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

9. Kimberly-Clark Corporation (NYSE:KMB): Engages in the manufacture and marketing of health care products worldwide. Market cap at $32.38B, most recent closing price at $82.57. The stock is trading 4.31% above its 20-day moving average, 6.70% above its 50-day MA, and 15.79% above its 200-day MA. Revenue grew by 4.22% during the most recent quarter ($5,241M vs. $5,029M y/y). Accounts receivable grew by -8.34% during the same time period ($2,672M vs. $2,915M y/y). Receivables, as a percentage of current assets, decreased from 46.27% to 42.3% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

10. Edison International (NYSE:EIX): Engages in the supply of electric energy in central, coastal, and southern California. Market cap at $15.01B, most recent closing price at $46.06. The stock is trading 2.16% above its 20-day moving average, 4.99% above its 50-day MA, and 13.77% above its 200-day MA. Revenue grew by 2.66% during the most recent quarter ($2,856M vs. $2,782M y/y). Accounts receivable grew by -3.71% during the same time period ($753M vs. $782M y/y). Receivables, as a percentage of current assets, decreased from 18.04% to 15.97% 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.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.