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Zacks.com featured highlights include: Matson, Aviat Networks, Nautilus and Herbalife Nutrition

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For Immediate Release

Chicago, IL – December 31, 2020 – Stocks in this week’s article are Matson, Inc. (MATX - Free Report) , Aviat Networks, Inc. (AVNW - Free Report) , Nautilus, Inc. (NLS - Free Report) and Herbalife Nutrition Ltd. (HLF - Free Report) .

4 Stocks to Buy Now, Riding High on Increasing Cash Flow

The year 2020 has seen unprecedented disruptions thanks to the coronavirus pandemic. After facing significant setbacks at the onset of the pandemic, markets have not only picked up but also touched fresh all-time highs. The Covid-19 relief bill is already signed and the rollout of vaccines is underway. However, the pace of immunizing Americans seems to be slower than expected and this could lead to a drag on the overall economic recovery.

Amid these, laying a wager on stocks based on profit numbers appears a popular strategy. But looking beyond profits and figuring out a company's efficiency in generating cash flows can be far more rewarding. This is because cash is the most indispensable factor for any company. It gives strength and vitality, and is the key for its existence, development and success.

Cash is, in fact, the lifeblood of any business and is reflective of a company's true financial health. And why not? Even a company generating profits succumbs to failure and faces bankruptcy while meeting obligations if it has a dearth of cash flow. But one can efficiently tide over any market mayhem if it has the cash to shield it.

In fact, analyzing a company's cash-generating efficiency has indeed become more relevant amid the health crisis that has given rise to uncertainties in the global economy, market disruptions and dislocations, as well as 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.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1235117/4-stocks-riding-high-on-increasing-cash-flow-to-buy-now?art_rec=quote-stock_overview-zacks_news-ID01-txt-1235117

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.

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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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