With profits over the last two quarters characterized by cost cutting and layoffs, investors are now keen to see if companies can generate returns from stronger sales.
In other words this earnings season they’re saying show me the revenue beef!
Johnson and Johnson, a bellwether drug maker couldn’t and investors punished the stock, as a result.
While JNJ third-quarter profit topped analyst forecasts, gains largely came from cost cuts and lower taxes – bottom line growth. Sales, however, fell 5.3% to $15.08 billion, shy of the analysts' forecast and the stock was ‘taken out to the woodshed,' as Guy Adami would say.
And that leads us to ask, which companies are going to show us the money? That is which companies are looking at top line profit from sales growth.
For insights we turned to Louis Navellier, CEO Of Navellier. He uses a series of criteria to screen stocks. They follow:
Navellier's Earnings Screen
*Return on Equity
As a result he likes 3 stocks in particular:
Here's The Beef: Navellier's Picks For Strong Sales Growth
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Trader disclosure: On Oct. 13th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (BTU), (MSFT), (NUE); Finerman's Firm Is Short (IJR); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (UNG); Finerman's Firm Is Short (USO); Finerman's Firm Is Long Puts & Calls (MDY); Finerman's Firm Owns (BAC), (BAC) Calls, (BAC) Call Spreads, (BAC) Preferred; Finerman Owns (RIG), (PDE); Finerman Owns (BAC), (BAC) Preferred; Finerman's Firm Owns (MSFT), (TGT), (PDE), (BRCM), (WMT), (RIG); Finerman's Firm Owns (WLP) Calls; Finerman's Firm Owns (UNH) Calls; Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (WLP) Calls; Terranova Owns (JPM), (JOYG), (NOV), (GS); Terranova Is Short (GRMN), (CCL); Terranova Owns Dec. 2009 Gold Futures; Terranova Owns Dec. 2009 Crude Oil Futures; Terranova Owns Dec. 2010 Crude Oil Futures; Terranova Works For (VRTS); Najarian Owns (BRCD) Calls; Najarian Owns (C) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (INTC), Is Short (INTC) Calls; Najarian Owns (GE) Calls; Najarian Owns (JPM) Calls; Najarian Is Short (JOYG) Calls; Najarian Owns (LAZ) & Short (LAZ) Calls; Najarian Owns (MYL) Puts; Najarian Owns (TEVA); Najarian Owns (YHOO) Call Spread
For Zack Karabell
Karabell Owns (FCX)
Karabell Owns (UTX)
Karabell Owns (HON)
Karabell Owns (SINA)
Karabell Owns (EDU)
For Brad Hintz
Hintz owns an Equity Position in (MS)
Bernstein Owns (GS)
(GS) Has Been A Client of Bernstein In Past 12 Months
Bernstein Owns (MS)
(MS) Has Been A Client of Bernstein In Past 12 Months