Buy Hold Sell: 3 stocks with strong sales growth (and 2 from the managers)

Sales growth is one of the most important metrics when evaluating growth stocks. Let's face it: it's hard to be a growth company if you're not constantly selling more products and services to consumers.  

Companies with strong sales growth demonstrate market demand, expansion potential, and the ability to capture a larger share of the industry, and investors often rightly look at sales growth to identify companies that are scaling rapidly and gaining traction in their respective markets.

That said, sales growth alone is no panacea. If viewed in isolation, it can even be misleading. High sales growth does not necessarily equate to financial health or long-term profitability. 

Some companies may aggressively grow sales but struggle with rising costs, poor margins, or excessive debt. Without strong profitability and cash flow management, even a high-growth company can face financial instability.

With all that in mind, this episode sees our guests running the ruler over a handful of stocks that have exhibited strong sales growth. Are they all they are cracked up to be, or have investors been wrong-footed as share prices have departed from reality? 

To answer those questions, Livewire's Hans Lee was joined by David Wilson from First Sentier Investors and Joe McCarthy from Elston Asset Management. For good measure, they each share a stock with strong sales growth which also ticks all the other boxes. 

Note: This episode was recorded on Wednesday, 30 January 2024.