We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 High-Flying Stocks With Increasing Cash Flows to Buy Now
Read MoreHide Full Article
Cash is the lifeblood for a company’s existence, development and success. It gives strength and vitality to a company, the flexibility to make decisions, the means to make potential investments and the fuel to run its growth engine, thus reflecting its true financial health.
Though investors flock to companies that earn profits, even a profitable business can succumb to failure if its cash flow is uneven, and eventually file for bankruptcy. Nonetheless, one can effectively judge a company’s resilience by evaluating its power of generating cash flows, as cash not only guards from market mayhem, but also indicates that profits are being channelized in the right direction.This has become all the more important as the coronavirus pandemic has resulted in unprecedented uncertainties in the global economy, market disruptions and dislocations, and affected liquidity.
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 then it denotes an increase in its liquid assets, which gives it 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, 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.
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:
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1: This indicates that brokers are also highly hopeful about the company’s future performance.
Current Price greater than or equal to $5: This sieves out low-priced stocks.
VGM Score of B or better: This score is also of great assistance in selecting stocks. Importantly, this scoring system helps in picking winning stocks in their individual industry categories.
Here are the three stocks that qualified the screening:
Primoris Services Corporation (PRIM - Free Report) is a Dallas, TX-based specialty contractor and infrastructure company. At present, the stock has a VGM Score of A.The Zacks Consensus Estimate of $1.70 for the current-year earnings moved 39.3% north over the past 30 days.
Griffon Corporation (GFF - Free Report) is a diversified management and holding company conducting business through wholly-owned subsidiaries. Currently, the stock has a VGM Score of A. The Zacks Consensus Estimate for fiscal 2020 earnings has been revised upward by 76.7% to $1.52 in 30 days’ time.
PEUGEOT SA manufactures and sells passenger cars and light commercial vehicles under the Peugeot, Citroën and DS brands; automotive equipment including interior systems, automotive seating, automotive exteriors and emission-control technologies; retail financing to car customers and wholesale financing to dealer networks. Currently, the stock has a VGM Score of A. The Zacks Consensus Estimate for its ongoing-year earnings has moved up significantly to $2.30 from 68 cents in the past month.
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.
Image: Bigstock
3 High-Flying Stocks With Increasing Cash Flows to Buy Now
Cash is the lifeblood for a company’s existence, development and success. It gives strength and vitality to a company, the flexibility to make decisions, the means to make potential investments and the fuel to run its growth engine, thus reflecting its true financial health.
Though investors flock to companies that earn profits, even a profitable business can succumb to failure if its cash flow is uneven, and eventually file for bankruptcy. Nonetheless, one can effectively judge a company’s resilience by evaluating its power of generating cash flows, as cash not only guards from market mayhem, but also indicates that profits are being channelized in the right direction.This has become all the more important as the coronavirus pandemic has resulted in unprecedented uncertainties in the global economy, market disruptions and dislocations, and affected liquidity.
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 then it denotes an increase in its liquid assets, which gives it 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, 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.
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:
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1: This indicates that brokers are also highly hopeful about the company’s future performance.
Current Price greater than or equal to $5: This sieves out low-priced stocks.
VGM Score of B or better: This score is also of great assistance in selecting stocks. Importantly, this scoring system helps in picking winning stocks in their individual industry categories.
Here are the three stocks that qualified the screening:
Primoris Services Corporation (PRIM - Free Report) is a Dallas, TX-based specialty contractor and infrastructure company. At present, the stock has a VGM Score of A.The Zacks Consensus Estimate of $1.70 for the current-year earnings moved 39.3% north over the past 30 days.
Griffon Corporation (GFF - Free Report) is a diversified management and holding company conducting business through wholly-owned subsidiaries. Currently, the stock has a VGM Score of A. The Zacks Consensus Estimate for fiscal 2020 earnings has been revised upward by 76.7% to $1.52 in 30 days’ time.
PEUGEOT SA manufactures and sells passenger cars and light commercial vehicles under the Peugeot, Citroën and DS brands; automotive equipment including interior systems, automotive seating, automotive exteriors and emission-control technologies; retail financing to car customers and wholesale financing to dealer networks. Currently, the stock has a VGM Score of A. The Zacks Consensus Estimate for its ongoing-year earnings has moved up significantly to $2.30 from 68 cents in the past month.
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.
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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.