For Immediate Release
Chicago, IL – February 3, 2021 – Stocks in this week’s article are Matson Inc. (
MATX Quick Quote MATX - Free Report) , Mueller Industries Inc. ( MLI Quick Quote MLI - Free Report) , PEUGEOT SA and Herc Holdings, Inc. ( HRI Quick Quote HRI - Free Report) . Look Beyond Profits, Bet on These 4 Stocks with Solid Cash Flows
Crunching profit numbers and evaluating surprises might appear a good option in the ongoing reporting cycle but these do not ensure that the profits are being efficiently channeled to the reserves for funding growth. This is because even a profit-making company can have a deficiency of cash flow and might go bankrupt while meeting its obligations.
Therefore, one must look at a company’s proficiency in generating cash flows in order to ensure investing in the right stocks. 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.
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.
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/1255962/look-beyond-profit-bet-on-these-4-stocks-with-solid-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
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