6 Industrial Stocks Reporting Earnings Next Week With Troubling Sales Trends
Do you want to be pro-active during earnings season? We created a list for all industrial stocks reporting earnings next week. [More lists: 7 Rallying Services Stocks Undervalued By The Graham Number]
Do you focus on top-line growth when analyzing industrial companies? Given that the industrial sector is directly correlated to the strength of the economy, any improvement in the U.S. economy should trigger an improvement in the revenues for these companies.
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One idea is to compare trends in revenue to trends in accounts receivable. We screened for those with negative trends in revenue relative to accounts receivable, with slower growth in revenue year-over-year than growth in accounts receivable, as well as receivables comprising a larger portion of current assets.
Receivables represent the portion of revenue not yet collected, so the smaller the portion of revenue and current assets, the better.
We were left with 6 stocks on our list.
Interactive Chart: Press Play to compare changes in market cap over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
Do you think it's time to stay cautious of these stocks? Use the list below as a starting point for your analysis.