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Zacks.com featured highlights Publicis Groupe, Encore Wire, A-Mark Precious Metals and Bowman Consulting Group
Read MoreHide Full Article
For Immediate Release
Chicago, IL – December 16, 2022 – Stocks in this week’s article are Publicis Groupe S.A. (PUBGY - Free Report) , Encore Wire Corp. (WIRE - Free Report) , A-Mark Precious Metals, Inc. (AMRK - Free Report) and Bowman Consulting Group Ltd. (BWMN - Free Report) .
Forget Profit, Bet on 4 Companies with Increasing Cash Flows
Achieving profit is no doubt a company’s goal but having a healthy cash flow is imperative to its existence, development and success. And why not? Even a company generating profits succumbs to failure and faces bankruptcy while meeting its obligations, if it has a dearth of cash flow. However, one can efficiently tide over any market mayhem if it has the cash to shield it.
In this regard, stocks like Publicis Groupe S.A., Encore Wire Corp., A-Mark Precious Metals, Inc. and Bowman Consulting Group Ltd. are worth buying.
In fact, a healthy cash position indicates that profits are being efficiently channelized to the company’s reserves. This offers flexibility to make decisions, chase potential investments and fuel its growth engine. It is indeed a true indicator of a company’s financial health and a measure of resiliency.
Analyzing a company’s cash-generating efficiency has indeed become more relevant amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns resulting from geopolitical tensions or the pandemic.
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, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the 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.
Here are our four picks out of the 16 stocks that qualified the screening:
Publicis Groupe S.A. is a global advertising and communications organization, offering a range of services to companies in 100 countries, with particular strength in France, Germany, the United Kingdom, Spain, Italy and North America.
The Zacks Consensus Estimate for Publicis Groupe’s earnings for the current year has moved 3.9% north in the past two months. PUBGY currently has a VGM Score of A.
Encore Wire is a low-cost manufacturer of copper electrical building wire and cable. The company is a significant supplier of residential wire for interior electrical wiring in homes, apartments and manufactured housing, as well as building wire for electrical distribution in commercial and industrial buildings.
The Zacks Consensus Estimate for Encore Wire’s 2022 earnings has been revised 24.2% upward to $33.35 from $26.86 in the past two months. WIRE has a VGM Score of A.
A-Mark Precious Metals, a El Segundo, CA-based company, operates in the integrated precious metals space and offers a range of gold, silver, platinum, palladium, and copper bullion, numismatic coins, and related products to wholesale and retail customers through a portfolio of channels.
The Zacks Consensus Estimate for AMRK’s fiscal 2023 earnings has moved 35.7% north over the past two months. It also indicates 7.1% year-over-year earnings per share growth. AMRK has a VGM Score of A.
Bowman Consulting Group Ltd. provides planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement and other technical services to customers operating in a diverse set of regulated end markets. BWMN is headquartered in Reston, VA.
The Zacks Consensus Estimate for current-year earnings has improved 42.9% over the past month. BWMN has a VGM Score of A.
Get the rest of the stocks on the list and 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.
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
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 >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights Publicis Groupe, Encore Wire, A-Mark Precious Metals and Bowman Consulting Group
For Immediate Release
Chicago, IL – December 16, 2022 – Stocks in this week’s article are Publicis Groupe S.A. (PUBGY - Free Report) , Encore Wire Corp. (WIRE - Free Report) , A-Mark Precious Metals, Inc. (AMRK - Free Report) and Bowman Consulting Group Ltd. (BWMN - Free Report) .
Forget Profit, Bet on 4 Companies with Increasing Cash Flows
Achieving profit is no doubt a company’s goal but having a healthy cash flow is imperative to its existence, development and success. And why not? Even a company generating profits succumbs to failure and faces bankruptcy while meeting its obligations, if it has a dearth of cash flow. However, one can efficiently tide over any market mayhem if it has the cash to shield it.
In this regard, stocks like Publicis Groupe S.A., Encore Wire Corp., A-Mark Precious Metals, Inc. and Bowman Consulting Group Ltd. are worth buying.
In fact, a healthy cash position indicates that profits are being efficiently channelized to the company’s reserves. This offers flexibility to make decisions, chase potential investments and fuel its growth engine. It is indeed a true indicator of a company’s financial health and a measure of resiliency.
Analyzing a company’s cash-generating efficiency has indeed become more relevant amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns resulting from geopolitical tensions or the pandemic.
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, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the 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.
Here are our four picks out of the 16 stocks that qualified the screening:
Publicis Groupe S.A. is a global advertising and communications organization, offering a range of services to companies in 100 countries, with particular strength in France, Germany, the United Kingdom, Spain, Italy and North America.
The Zacks Consensus Estimate for Publicis Groupe’s earnings for the current year has moved 3.9% north in the past two months. PUBGY currently has a VGM Score of A.
Encore Wire is a low-cost manufacturer of copper electrical building wire and cable. The company is a significant supplier of residential wire for interior electrical wiring in homes, apartments and manufactured housing, as well as building wire for electrical distribution in commercial and industrial buildings.
The Zacks Consensus Estimate for Encore Wire’s 2022 earnings has been revised 24.2% upward to $33.35 from $26.86 in the past two months. WIRE has a VGM Score of A.
A-Mark Precious Metals, a El Segundo, CA-based company, operates in the integrated precious metals space and offers a range of gold, silver, platinum, palladium, and copper bullion, numismatic coins, and related products to wholesale and retail customers through a portfolio of channels.
The Zacks Consensus Estimate for AMRK’s fiscal 2023 earnings has moved 35.7% north over the past two months. It also indicates 7.1% year-over-year earnings per share growth. AMRK has a VGM Score of A.
Bowman Consulting Group Ltd. provides planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement and other technical services to customers operating in a diverse set of regulated end markets. BWMN is headquartered in Reston, VA.
The Zacks Consensus Estimate for current-year earnings has improved 42.9% over the past month. BWMN has a VGM Score of A.
Get the rest of the stocks on the list and 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.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2028997/forget-profit-bet-on-4-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
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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Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.