For Immediate Release
Chicago, IL – November 12, 2020 – Stocks in this week’s article are Delta Apparel, Inc. (
DLA Quick Quote DLA - Free Report) , Matson Inc. ( MATX Quick Quote MATX - Free Report) , Turtle Beach Corp. ( HEAR Quick Quote HEAR - Free Report) and Polymetal International plc ( AUCOY Quick Quote AUCOY - Free Report) . 4 Increasing Cash Flow Stocks You Can Pick Up Now
Investing one’s hard-earned money in stocks with high profits and impressive earnings surprise records is a trend during the final leg of a reporting cycle. However, rather than brooding too much on profit numbers, strategically judging a company’s resiliency by assessing its efficacy in generating cash flows can be far more rewarding.
This is because cash indicates a company’s true financial health. It offers the flexibility to make decisions, the means to make potential investments and 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. However, a sturdy cash balance can cushion these firms in case of any market turbulence.
Particularly, analyzing a company’s cash-generating efficiency holds more relevance in the current context as the coronavirus pandemic is giving rise to uncertainties in the global economy, market disruptions and dislocations, and liquidity concerns.
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.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1100055/4-increasing-cashflow-backed-stocks-you-can-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.
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Contact: Jim Giaquinto
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