The sales growth rate for a stock is a measure of how the stock’s sales per share (SPS) has grown over the last five years.
For portfolios, this data point is the share-weighted collective sales growth for all stocks in the current portfolio. (The share-weighted average is more accurate than an asset-weighted average for this type of calculation.)
Note: Sales growth is one of the five growth factors used to calculate the Morningstar Investment Style Box.
Benefits
Sales growth tells an investor how quickly a company is increasing its revenues. The sales growth rate helps Morningstar determine how strong the overall growth-orientation is for a stock or portfolio.
Origin
Morningstar generates this figure in-house based on stock statistics from our internal equities databases. For stocks, this figure is calculated monthly. For funds and portfolios, Morningstar updates this figure upon receipt of the most-recent portfolio holdings from the asset manager.