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Bet on These 4 High-Flying Stocks With Increasing Cash Flows
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Cash is the lifeblood of any business. It offers the flexibility to make decisions, the means to make potential investments and the fuel to run the growth engine. In fact, it holds the key to a company’s existence, development and success, and indicates its true financial health.
Before investing in the right stocks, one must go beyond profit numbers and look at a company’s efficiency in generating cash flows. This is because even a profitable business can succumb to failure if its cash flow is uneven and eventually file for bankruptcy. However, 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 channeled in the right direction.
In this regard, stocks like Modine Manufacturing Company (MOD - Free Report) , Griffon Corporation (GFF - Free Report) , HNI Corporation (HNI - Free Report) and Betterware de México, S.A.P.I. de C.V. (BWMX - Free Report) are worth buying.
Moreover, analyzing a company’s cash-generating efficiency has indeed gained more relevance amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns in recent years 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.
Screening Parameters:
To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the 5-year average cash flow per common share. This implies a positive trend and increasing cash over a period of time.
In addition to this we chose:
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1: This indicates that brokers are also highly hopeful about the company’s future performance.
Current Price greater than or equal to $5: This sieves out low-priced stocks.
VGM Score of B or better: This score is also of great assistance in selecting stocks. Importantly, this scoring system helps in picking winning stocks in their industry categories.
Here are our four picks out of the eight stocks that qualified the screening:
Modine Manufacturing operates primarily in a single industry consisting of the manufacturing and sale of heat transfer equipment. These include heat exchangers for cooling all types of engines, transmissions, auxiliary hydraulic equipment, air conditioning components used in cars, trucks, farm and construction machinery and equipment, and heating and cooling equipment for residential and commercial building heating, ventilating, air conditioning and refrigeration equipment.
The Zacks Consensus Estimate for Modine Manufacturing’s fiscal 2024 earnings has moved 7.2% north in the past two months to $3.26 per share. MOD has a VGM Score of B.
Griffon Corp., a diversified management and holding company, operates through wholly-owned subsidiaries. It provides consumer and professional, as well as home and building products.
The Zacks Consensus Estimate for Griffon Corp.’s fiscal 2024 earnings per share has been revised 3.9% upward to $4.80 in the past two months. GFF has a VGM Score of A.
HNI Corp. provides products and solutions for home and workplace environments. HNI is a leading global provider and designer of office furniture and the leading manufacturer and marketer of hearth products.
The Zacks Consensus Estimate for HNI Corp.’s 2024 earnings per share has been revised 6.5% upward to $2.93 in the past month. HNI has a VGM Score of A.
Betterware de México, S.A.P.I. de C.V. is a direct-to-consumer selling company principally in Mexico. It is primarily focused on the home organization and solutions segment.
The Zacks Consensus Estimate for its current-year earnings has improved 26.3% over the past month to $2.02. BWMX 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.
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Bet on These 4 High-Flying Stocks With Increasing Cash Flows
Cash is the lifeblood of any business. It offers the flexibility to make decisions, the means to make potential investments and the fuel to run the growth engine. In fact, it holds the key to a company’s existence, development and success, and indicates its true financial health.
Before investing in the right stocks, one must go beyond profit numbers and look at a company’s efficiency in generating cash flows. This is because even a profitable business can succumb to failure if its cash flow is uneven and eventually file for bankruptcy. However, 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 channeled in the right direction.
In this regard, stocks like Modine Manufacturing Company (MOD - Free Report) , Griffon Corporation (GFF - Free Report) , HNI Corporation (HNI - Free Report) and Betterware de México, S.A.P.I. de C.V. (BWMX - Free Report) are worth buying.
Moreover, analyzing a company’s cash-generating efficiency has indeed gained more relevance amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns in recent years 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.
Screening Parameters:
To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the 5-year average cash flow per common share. This implies a positive trend and increasing cash over a period of time.
In addition to this we chose:
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1: This indicates that brokers are also highly hopeful about the company’s future performance.
Current Price greater than or equal to $5: This sieves out low-priced stocks.
VGM Score of B or better: This score is also of great assistance in selecting stocks. Importantly, this scoring system helps in picking winning stocks in their industry categories.
Here are our four picks out of the eight stocks that qualified the screening:
Modine Manufacturing operates primarily in a single industry consisting of the manufacturing and sale of heat transfer equipment. These include heat exchangers for cooling all types of engines, transmissions, auxiliary hydraulic equipment, air conditioning components used in cars, trucks, farm and construction machinery and equipment, and heating and cooling equipment for residential and commercial building heating, ventilating, air conditioning and refrigeration equipment.
The Zacks Consensus Estimate for Modine Manufacturing’s fiscal 2024 earnings has moved 7.2% north in the past two months to $3.26 per share. MOD has a VGM Score of B.
Griffon Corp., a diversified management and holding company, operates through wholly-owned subsidiaries. It provides consumer and professional, as well as home and building products.
The Zacks Consensus Estimate for Griffon Corp.’s fiscal 2024 earnings per share has been revised 3.9% upward to $4.80 in the past two months. GFF has a VGM Score of A.
HNI Corp. provides products and solutions for home and workplace environments. HNI is a leading global provider and designer of office furniture and the leading manufacturer and marketer of hearth products.
The Zacks Consensus Estimate for HNI Corp.’s 2024 earnings per share has been revised 6.5% upward to $2.93 in the past month. HNI has a VGM Score of A.
Betterware de México, S.A.P.I. de C.V. is a direct-to-consumer selling company principally in Mexico. It is primarily focused on the home organization and solutions segment.
The Zacks Consensus Estimate for its current-year earnings has improved 26.3% over the past month to $2.02. BWMX 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.
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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.