Sales Growth – Higher Is Better

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SALES GROWTH – HIGHER IS BETTER

The “sales growth higher is better” signal aims to invest in the fastest growing companies in sales, thus gaining exposure to rapid growth companies.

Some investors want to include this signal as they see high growth as an indicator for the company’s future potential, and therefore future returns.

SALES GROWTH – HIGHER IS BETTER SIGNAL

This signal ranks stock according to their sales growth. This allows to identify and purchase stocks that are ranked with the highest sales growth and (if applicable) short-sell stocks that are ranked with the lowest sales growth.
Each day we calculate the sales growth by taking the company’s total revenues during the last four quarters (from the Income Statement) and dividing it by the previous four quarter before that (also from the Income statement). If the denominator is zero or negative, then this signal is NULL.
Later stocks are ranked with the score of 10 to 0, with 10 having the highest sales growth to 0 having the lowest sales growth.

DATA SCOPE & RANGE

Sales growth is calculated daily for over 6,000 stocks in the historical database.
TipRanks calculates sales growth as of January 2011 to present day.