One of the recurring stories of these past two earnings seasons was the lack of sales growth. Or maybe it was just the lack of guidance. Either way those reasons were enough to send more than a few stocks down the market garbage chute in the short term. Now I want to take a look at the last 6 months and see if there are any bargains out there with real, growing sales.
First I use the Aqumin (www.aqumin.com)AlphaVision Landscape to indentify relative 6 month Total Returns. The bigger the spike the bigger the 6 month total return, and there are plenty of tall spikes out there the last 6 months. Also, I used the soft sorting of the AlphaVision ColorBar to highlight 5 year Geometric Sales Growth of 15 Percent or more (in Dark Green). The sales shrinkers are in red. (Even most of those are up the last 6 months)
My simple little sort left me with Southwestern Energy Co. (SWN). SWN leads the Energy sector in Sales Growth (5 year compounded Sales Growth) and what I thought was interesting is that the sales numbers are back up to the 2008 highs. The stock is not. In a day of massive rallying, using AlphaVision, it is not too hard to find a name that is not yet ahead of itself.
Andrew Giovinazzi
For AV for Bloomberg users, just click in the View Library to interact with this view live (Geometric Growth Sales per Diluted Share). If you are not an AlphaVision for Bloomberg Subscriber please follow the download link here: Download AV for Bloomberg
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