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Zacks.com featured highlights include ASE Technology Holding, Weatherford International, Encore Wire and Tecnoglass
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For Immediate Release
Chicago, IL – March 24, 2023 – Stocks in this week’s article are ASE Technology Holding Co., Ltd. (ASX - Free Report) , Weatherford International plc (WFRD - Free Report) , Encore Wire Corp. (WIRE - Free Report) and Tecnoglass Inc. (TGLS - Free Report) .
Look Beyond Profits: Bet on 4 Stocks with Swelling Cash Flows
Investors mostly flock to companies that earn profits. However, even a profitable business can succumb to failure if its cash flow is uneven and it can eventually file for bankruptcy. One can effectively judge a company's resilience by looking at its efficiency in generating cash flows. This is because cash not only shields it from market mayhem but also indicates that profits are being channelized in the right direction.
In this regard, stocks like ASE Technology Holding Co., Ltd., Weatherford International plc, Encore Wire Corp. and Tecnoglass Inc. are worth buying.
If achieving profit is a company's goal, then having a healthy cash flow is essential for its existence, development and success. This is because cash gives a company more flexibility with respect to business decisions and potential investments, as well as the fuel to run its growth engine. Cash indicates a company's true financial health.
Analyzing a company's cash-generating efficiency has become more relevant amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns resulting from geopolitical tensions or the health crisis.
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 17 stocks that qualified the screening:
ASE Technology is a provider of semiconductor manufacturing services in assembly and testing. The company develops and offers complete turnkey solutions covering front-end engineering testing, wafer probing and final testing, as well as IC packaging, materials and electronic manufacturing services.
The Zacks Consensus Estimate for ASE Technology's 2023 earnings has been revised 5.1% upward over the past two months. Currently, ASX has a VGM Score of A.
Weatherford International provides oil field services and equipment. The company offers drilling solutions, gas well unloading, restoration and other related activities.
The Zacks Consensus Estimate for 2023 earnings has improved 44.6% over the past two months. Currently, WFRD carries 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 2023 earnings has been revised 28.1% upward in the past two months. WIRE has a VGM Score of A.
Tecnoglass is a leading manufacturer of architectural glass, windows and associated aluminum products serving the global residential and commercial end markets.
The Zacks Consensus Estimate for Tecnoglass' 2023 earnings has been revised 10.7% upward in the past month. TGLS has a VGM Score of B.
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/performancefor information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include ASE Technology Holding, Weatherford International, Encore Wire and Tecnoglass
For Immediate Release
Chicago, IL – March 24, 2023 – Stocks in this week’s article are ASE Technology Holding Co., Ltd. (ASX - Free Report) , Weatherford International plc (WFRD - Free Report) , Encore Wire Corp. (WIRE - Free Report) and Tecnoglass Inc. (TGLS - Free Report) .
Look Beyond Profits: Bet on 4 Stocks with Swelling Cash Flows
Investors mostly flock to companies that earn profits. However, even a profitable business can succumb to failure if its cash flow is uneven and it can eventually file for bankruptcy. One can effectively judge a company's resilience by looking at its efficiency in generating cash flows. This is because cash not only shields it from market mayhem but also indicates that profits are being channelized in the right direction.
In this regard, stocks like ASE Technology Holding Co., Ltd., Weatherford International plc, Encore Wire Corp. and Tecnoglass Inc. are worth buying.
If achieving profit is a company's goal, then having a healthy cash flow is essential for its existence, development and success. This is because cash gives a company more flexibility with respect to business decisions and potential investments, as well as the fuel to run its growth engine. Cash indicates a company's true financial health.
Analyzing a company's cash-generating efficiency has become more relevant amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns resulting from geopolitical tensions or the health crisis.
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 17 stocks that qualified the screening:
ASE Technology is a provider of semiconductor manufacturing services in assembly and testing. The company develops and offers complete turnkey solutions covering front-end engineering testing, wafer probing and final testing, as well as IC packaging, materials and electronic manufacturing services.
The Zacks Consensus Estimate for ASE Technology's 2023 earnings has been revised 5.1% upward over the past two months. Currently, ASX has a VGM Score of A.
Weatherford International provides oil field services and equipment. The company offers drilling solutions, gas well unloading, restoration and other related activities.
The Zacks Consensus Estimate for 2023 earnings has improved 44.6% over the past two months. Currently, WFRD carries 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 2023 earnings has been revised 28.1% upward in the past two months. WIRE has a VGM Score of A.
Tecnoglass is a leading manufacturer of architectural glass, windows and associated aluminum products serving the global residential and commercial end markets.
The Zacks Consensus Estimate for Tecnoglass' 2023 earnings has been revised 10.7% upward in the past month. TGLS has a VGM Score of B.
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/2069458/look-beyond-profit-bet-on-4-stocks-with-swelling-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 >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
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.
Contact: Jim Giaquinto
Company: Zacks.com
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/performancefor information about the performance numbers displayed in this press release.