Chicago, IL – March 7, 2025 – Stocks in this week’s article are — Darden Restaurants DRI, The Middleby Corp. MIDD, Intuit Inc. INTU, Cullen/Frost Bankers CFR and American Electric Power AEP.
Markets started 2025 on a strong note, but volatility has since taken hold. Earlier this week, the introduction of new tariffs on Canada, China and Mexico triggered a sharp selloff, and all three major indexes tanked, erasing the S&P 500’s post-Election Day gains. Although markets rebounded yesterday, concerns over the economic impact of these tariffs—along with potential retaliatory measures—are likely to keep investor sentiment cautious.
Against such a backdrop, the conventional method of selecting stocks is the need of the hour. One such way is choosing stocks with steady sales growth. In this regard, Darden Restaurants, The Middleby Corp., Intuit Inc., Cullen/Frost Bankers and American Electric Power are worth betting on.
When evaluating a company, revenue often receives more scrutiny than earnings. Investors focus on a business’s ability to generate increasing sales over time, as this indicates its potential to expand its customer base. In contrast, stagnant or declining sales growth may signal underlying challenges. While a company can still generate short-term profits, sustained growth is necessary to attract new investors.
Strong revenue growth is also essential for long-term profitability. Although earnings can be improved by cutting costs, consistent bottom-line expansion typically requires steady sales increases.
However, sales growth alone doesn’t provide a complete picture of a company’s financial health. Evaluating a company’s cash position alongside its revenues is a more effective investment strategy. A strong cash balance and steady cash flow provide flexibility for strategic decisions, operational stability and future investments.
Orlando, FL-based Darden is one of the largest casual dining restaurant operators worldwide. DRI, operating via its subsidiaries, oversees restaurants throughout the United States and Canada, excluding two joint venture restaurants, four managed locations operating under contractual agreements and 91 franchised restaurants.
Darden’s expected sales growth rate for fiscal 2025 is 6.3%. The stock carries a Zacks Rank #2 at present.
Middleby, based in Elgin, IL, provides cooking, warming, food preparation and packaging equipment to commercial, industrial processing and residential markets. MIDD has manufacturing and distribution operations in the United States, Canada, Asia, Europe, the Middle East and Latin America.
Middleby’s expected sales growth rate for 2025 is 3.4%. The stock currently carries a Zacks Rank #2.
Mountain View, CA-based Intuit is a business and financial software company that develops and sells financial, accounting and tax preparation software and related services globally. INTU has offices in the United States, Canada, India, the United Kingdom, Singapore, Australia and other locations.
Intuit’s sales are expected to rise 12.4% in 2025. The stock carries a Zacks Rank #2 at present.
Cullen/Frost, based in San Antonio, TX, is a financial holding company and a bank holding company. CFR provides a broad array of products and services throughout numerous Texas markets.
Cullen/Frost’s expected sales growth for 2025 is 4.1%. The company, at present, sports a Zacks Rank #1.
Columbus, OH-based American Electric Power is a public utility holding company that generates, transmits and distributes electricity, natural gas and other commodities. Approximately 37% of AEP’s power is generated from coal and lignite, 22% from nuclear energy, 22% from natural gas and oil and the remaining 19% from renewable sources.
American Electric Power’s sales are expected to increase 5% in 2025. The stock carries a Zacks Rank #2 at present.
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American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Cullen/Frost Bankers, Inc. (CFR) : Free Stock Analysis Report
The Middleby Corporation (MIDD) : Free Stock Analysis Report
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