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Zacks.com featured highlights include PDC Energy, Louisiana-Pacific, Encore Wire, Arcos Dorados Holdings, and GeoPark
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For Immediate Release
Chicago, IL – May 10, 2022 – Stocks in this week’s article are PDC Energy, Inc. , Louisiana-Pacific Corp. (LPX - Free Report) , Encore Wire Corp. (WIRE - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) , and GeoPark Ltd. (GPRK - Free Report) .
5 Increasing-Cash-Flow-Backed Stocks You Should Buy Now
Investing one's hard-earned money in stocks with high profits and impressive earnings surprise records is a common practice during the final leg of a reporting cycle. Rather than brooding too much on profit numbers, judging a company's resiliency by assessing its efficacy in generating cash flow can be far more rewarding.
In this regard, stocks like PDC Energy, Inc., Louisiana-Pacific Corp., Encore Wire Corp., Arcos Dorados Holdings Inc., and GeoPark Ltd. are worth buying.
This is because cash indicates a company's true financial health. It offers the flexibility to make decisions, the means to make potential investments as well as the fuel to run its growth engine. In fact, even a profit-generating company might face bankruptcy while meeting obligations, if it is low on cash flow. Nevertheless, a sturdy cash balance can cushion these firms in case of any market turbulence.
Moreover, analyzing a company's cash-generating efficiency holds more relevance in the current context with uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns resulting from geopolitical tensions or the pandemic.
To figure out this efficiency, one needs to consider a company's net cash flow. While in any business cash moves in and out, it is net cash flow that explains how much money a company is actually generating.
If a company is experiencing a positive cash flow, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the business, endure downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decline in the company's liquidity, which in turn lowers its flexibility to support these moves.
However, having a positive cash flow merely does not secure a company's future growth. To ride on the growth curve, a company must have its cash flow increasing because that indicates management's efficiency in regulating its cash movements and less dependency on outside financing for running its business.
Therefore, keep yourself abreast with the following screen to bet on stocks with rising cash flows.
Here are our five picks out of the 13 stocks that qualified the screening:
PDC Energy, Inc., headquartered in Denver, CO, is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids.
The Zacks Consensus Estimate for PDC Energy's 2022 earnings has moved 6.4% north to $17.31 over the past week. PDCE currently carries a VGM Score of A.
Louisiana-Pacific Corporation is a leading manufacturer of sustainable, quality engineered wood building materials, structural framing products as well as exterior siding for use in residential, industrial and light commercial construction.
The Zacks Consensus Estimate for Louisiana-Pacific's 2022 earnings has been revised 14.2% upward to $14.87 per share in a week. LPX currently has a VGM Score of A.
Encore Wire is a low-cost manufacturer of copper electrical building wire and cable. The company is a significant supplier of both residential wire for interior electrical wiring in homes, apartments and manufactured housing, as well as building wire for electrical distribution in commercial and industrial buildings.
The Zacks Consensus Estimate for Encore Wire's 2022 earnings has been revised upward to $19.18 from $10.74 in a week. WIRE has a VGM Score of A.
Arcos Dorados operates as a franchisee of McDonald's, with its operations divided in Brazil, the North Latin America division, South Latin America and the Caribbean division. It also runs quick-service restaurants in Latin America and the Caribbean.
The Zacks Consensus Estimate for Arcos Dorados' 2022 earnings has been revised upward by a penny to 40 cents per share in the past month. ARCO currently sports a VGM Score of A.
GeoPark Limited is an explorer, operator and consolidator of oil and gas. The company operates primarily in Chile, Colombia, Brazil and Argentina. GeoPark Ltd is based in Hamilton, Bermuda.
The Zacks Consensus Estimate for GeoPark's 2022 earnings has moved up 2.8% over the past month. GPRK currently has a VGM Score of A.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include PDC Energy, Louisiana-Pacific, Encore Wire, Arcos Dorados Holdings, and GeoPark
For Immediate Release
Chicago, IL – May 10, 2022 – Stocks in this week’s article are PDC Energy, Inc. , Louisiana-Pacific Corp. (LPX - Free Report) , Encore Wire Corp. (WIRE - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) , and GeoPark Ltd. (GPRK - Free Report) .
5 Increasing-Cash-Flow-Backed Stocks You Should Buy Now
Investing one's hard-earned money in stocks with high profits and impressive earnings surprise records is a common practice during the final leg of a reporting cycle. Rather than brooding too much on profit numbers, judging a company's resiliency by assessing its efficacy in generating cash flow can be far more rewarding.
In this regard, stocks like PDC Energy, Inc., Louisiana-Pacific Corp., Encore Wire Corp., Arcos Dorados Holdings Inc., and GeoPark Ltd. are worth buying.
This is because cash indicates a company's true financial health. It offers the flexibility to make decisions, the means to make potential investments as well as the fuel to run its growth engine. In fact, even a profit-generating company might face bankruptcy while meeting obligations, if it is low on cash flow. Nevertheless, a sturdy cash balance can cushion these firms in case of any market turbulence.
Moreover, analyzing a company's cash-generating efficiency holds more relevance in the current context with uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns resulting from geopolitical tensions or the pandemic.
To figure out this efficiency, one needs to consider a company's net cash flow. While in any business cash moves in and out, it is net cash flow that explains how much money a company is actually generating.
If a company is experiencing a positive cash flow, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the business, endure downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decline in the company's liquidity, which in turn lowers its flexibility to support these moves.
However, having a positive cash flow merely does not secure a company's future growth. To ride on the growth curve, a company must have its cash flow increasing because that indicates management's efficiency in regulating its cash movements and less dependency on outside financing for running its business.
Therefore, keep yourself abreast with the following screen to bet on stocks with rising cash flows.
Here are our five picks out of the 13 stocks that qualified the screening:
PDC Energy, Inc., headquartered in Denver, CO, is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids.
The Zacks Consensus Estimate for PDC Energy's 2022 earnings has moved 6.4% north to $17.31 over the past week. PDCE currently carries a VGM Score of A.
Louisiana-Pacific Corporation is a leading manufacturer of sustainable, quality engineered wood building materials, structural framing products as well as exterior siding for use in residential, industrial and light commercial construction.
The Zacks Consensus Estimate for Louisiana-Pacific's 2022 earnings has been revised 14.2% upward to $14.87 per share in a week. LPX currently has a VGM Score of A.
Encore Wire is a low-cost manufacturer of copper electrical building wire and cable. The company is a significant supplier of both residential wire for interior electrical wiring in homes, apartments and manufactured housing, as well as building wire for electrical distribution in commercial and industrial buildings.
The Zacks Consensus Estimate for Encore Wire's 2022 earnings has been revised upward to $19.18 from $10.74 in a week. WIRE has a VGM Score of A.
Arcos Dorados operates as a franchisee of McDonald's, with its operations divided in Brazil, the North Latin America division, South Latin America and the Caribbean division. It also runs quick-service restaurants in Latin America and the Caribbean.
The Zacks Consensus Estimate for Arcos Dorados' 2022 earnings has been revised upward by a penny to 40 cents per share in the past month. ARCO currently sports a VGM Score of A.
GeoPark Limited is an explorer, operator and consolidator of oil and gas. The company operates primarily in Chile, Colombia, Brazil and Argentina. GeoPark Ltd is based in Hamilton, Bermuda.
The Zacks Consensus Estimate for GeoPark's 2022 earnings has moved up 2.8% over the past month. GPRK currently has a VGM Score of A.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1918464/5-increasing-cash-flow-backed-stocks-you-should-pick-now
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.