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Zacks.com featured highlights: Huntsman, Nova Measuring Instruments and Modine Manufacturing

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For Immediate Release

Chicago, IL – October 27, 2017 - Stocks in this week’s article include Huntsman Corporation (HUN - Free Report) , Nova Measuring Instruments Ltd. (NVMI - Free Report) and Modine Manufacturing Company (MOD - Free Report) .

Screen of the Week by Zacks Investment Research:

Look Beyond Earnings: 3 Stocks with Increasing Cash Flows

We are in one of the busiest weeks of the current-reporting cycle, and crunching profit numbers and evaluating surprises might seem appropriate right now for investors. However, looking beyond the profit numbers and figuring out a company’s efficiency in generating cash flows can be far more rewarding.

This is because even a profit-making company can face cash trouble and end up being bankrupt while meeting its obligations. But a company with solid cash flow can endure any market mayhem besides enjoying flexibility in decision making, chasing potential investments and fueling its growth engine. In fact, cash is indispensable factor for any company. It gives strength and vitality to a company and is the key to its existence, development and success.

To find out the efficiency of a company, one needs to consider its net cash flow. While, in any business, cash moves in and out, it is net cash flow that explains how much money the company is actually generating.

A positive cash flow indicates an increase in the company’s liquid assets, which provide the means to meet debt obligations, shell out for expenses, reinvest in business, endure downturns and finally return wealth to shareholders. On the other hand, negative cash flow indicates a decline in the company’s liquidity and in turn lowers its flexibility to support these moves.

However, positive cash flow alone is not sufficient to predict a company’s growth. A company can competently grow only when this positive cash flow is rising, because this improvement indicates management’s efficiency in regulating its cash movements and lesser dependency on external financing sources for running its business.

So, while picking stocks, look beyond profits and select companies with dependable and increasing cash flows.

Screening Parameters:

To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the 5-year average cash flow per common share. This implies a positive trend and increasing cash over a period of time.

In addition to this we chose:

For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/280333/look-beyond-earnings-3-stocks-with-increasing-cash-flows

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

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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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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Huntsman Corporation (HUN) - free report >>

Nova Ltd. (NVMI) - free report >>

Modine Manufacturing Company (MOD) - free report >>