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

We screened the utilities sector for stocks with strong sales trends by comparing 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.‬

click for interactive chart

Tool provided by Kapitall (www.kapitall.com).

Do you think these stocks are poised to move higher? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. AGL Resources Inc. (GAS): Engages in natural gas distribution business in the United States. Market cap at $4.71B, most recent closing price at $40.11. Revenue grew by 82.93% during the most recent quarter ($686M vs. $375M y/y). Inventory grew by 0.92% during the same time period ($549M vs. $544M y/y). Inventory, as a percentage of current assets, decreased from 33.94% to 29.2% during the most recent quarter (comparing 3 months ending 2012-06-30 to 3 months ending 2011-06-30).

2. ITC Holdings Corp. (ITC): Engages in the transmission of electricity in the United States. Market cap at $3.69B, most recent closing price at $71.74. Revenue grew by 6.63% during the most recent quarter ($197.38M vs. $185.1M y/y). Inventory grew by -11.82% during the same time period ($35.05M vs. $39.75M y/y). Inventory, as a percentage of current assets, decreased from 16.1% to 15.17% during the most recent quarter (comparing 3 months ending 2012-06-30 to 3 months ending 2011-06-30).

3. Edison International (EIX): Engages in the supply of electric energy in central, coastal, and southern California. Market cap at $14.77B, most recent closing price at $45.32. Revenue grew by 2.48% during the most recent quarter ($3,057M vs. $2,983M y/y). Inventory grew by -3.74% during the same time period ($567M vs. $589M y/y). Inventory, as a percentage of current assets, decreased from 13.58% to 12.78% during the most recent quarter (comparing 3 months ending 2012-06-30 to 3 months ending 2011-06-30).

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

Source: 3 Utilities Stocks With Encouraging Inventory Trends