Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Do you consider a company's sales trends when choosing among names? We ran a screen to illustrate how to start your own sales analysis. We began by screening for stocks with multiple "buy" or "outperform" ratings from top analysts, including from Argus, Barclays, Canaccord Genuity, Collins Stewart, Deutsche, Needham, Oppenheimer, Robert W Baird, UBS, and Wedbush.

We took names with at least two bullish ratings and then looked for stocks with strong sales trends. We did this 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.

On average, analysts are not in agreement, especially when it comes to MEMC Electronic Materials Inc. (WFR). For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Click to enlarge

Tool provided by Kapitall (www.kapitall.com)

Do you think these buy rated stocks will continue to see strong sales trends? Use this list as a starting point for your own analysis.

1. Foot Locker, Inc. (NYSE:FL): Foot Locker operates as a retailer of athletic footwear and apparel. Market cap at $5.56B, most recent closing price at $36.83. Revenue grew by 7.22% during the most recent quarter ($1,367M vs. $1,275M y/y). Inventory grew by -2.99% during the same time period ($1,231M vs. $1,269M y/y). Inventory, as a percentage of current assets, decreased from 59.33% to 54.71% during the most recent quarter (comparing 13 weeks ending 2012-07-28 to 13 weeks ending 2011-07-30). On 05/29/2012, Deutsche Bank had a Buy rating on the stock. On 09/07/2011, Canaccord Genuity had a Buy rating on the stock.

2. RDA Microelectronics, Inc. (NASDAQ:RDA): RDA Microelectronics designs, develops, and markets radio-frequency and mixed-signal semiconductors for cellular, broadcast, and connectivity applications. Market cap at $422.9M, most recent closing price at $9.96. Revenue grew by 39.97% during the most recent quarter ($94.37M vs. $67.42M y/y). Inventory grew by 10.68% during the same time period ($44.56M vs. $40.26M y/y). Inventory, as a percentage of current assets, decreased from 20.54% to 19.24% during the most recent quarter (comparing the three months ending 2012-06-30 to the three months ending 2011-06-30). On 08/06/2012, Needham had a Strong Buy rating on the stock. On 08/10/2012, Canaccord Genuity had a Buy rating on the stock.

3. Under Armour, Inc. (NYSE:UA): Under Armour designs, develops, markets, and distributes a range of apparel and accessories using synthetic microfiber fabrications in the US. Market cap at $6.23B, most recent closing price at $59.60. Revenue grew by 26.82% during the most recent quarter ($369.47M vs. $291.34M y/y). Inventory grew by 22.45% during the same time period ($380.89M vs. $311.07M y/y). Inventory, as a percentage of current assets, decreased from 50.07% to 49.% during the most recent quarter (comparing 3 months ending 2012-06-30 to the three months ending 2011-06-30). On 01/03/2012, Robert W. Baird had a Outperform rating on the stock. On 01/31/2012, Needham had a Buy rating on the stock. On 09/23/2011, Argus had a Buy rating on the stock.

4. MEMC Electronic Materials Inc. (WFR): MEMC Electronic Materials engages in the development, manufacture, and sale of silicon wafers for the semiconductor industry worldwide. Market cap at $718.16M, most recent closing price at $3.11. Revenue grew by 8.42% during the most recent quarter ($808.4M vs. $745.6M y/y). Inventory grew by -22.66% during the same time period ($259.4M vs. $335.4M y/y). Inventory, as a percentage of current assets, decreased from 18.43% to 17.86% during the most recent quarter (comparing the three months ending 2012-06-30 to the three months ending 2011-06-30). On 09/16/2011, Deutsche Bank had a Buy rating on the stock. On 12/09/2011, Collins Stewart had a Buy rating on the stock.

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

Source: Analysts Love These 4 Stocks With Encouraging Inventory Trends