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Zacks.com featured highlights Modine Manufacturing, H&E Equipment, HNI and Willdan
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For Immediate Release
Chicago, IL – April 3, 2024 – Stocks in this week’s article are Modine Manufacturing Co. (MOD - Free Report) , H&E Equipment Services, Inc. (HEES - Free Report) , HNI Corp. (HNI - Free Report) and Willdan Group, Inc. (WLDN - Free Report) .
Look Beyond Profit: Buy These 4 Stocks with Solid Cash Flows
Investors mostly flock to companies that earn profits, but 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 flow. This is because cash not only shields it from any market mayhem, but also indicates that its profits are being channeled in the right direction.
In this regard, stocks like Modine Manufacturing Co., H&E Equipment Services, Inc., HNI Corp. and Willdan Group, Inc. are worth buying.
In fact, if achieving profit is a company’s goal, then having a healthy cash flow is highly 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, in fact, indicates a company’s true financial health. This holds more relevance in the current context amid 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, 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 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 a cent north in the past month to $3.27 per share. MOD has a VGM Score of B.
H&E Equipment Services is one of the largest integrated equipment services companies in the United States. The company is focused on heavy construction and industrial equipment, as well as rents, sells, and provides parts and service support to the four core categories of specialized equipment. These are hi-lift or aerial platform equipment, cranes, earthmoving equipment and industrial lift trucks.
The Zacks Consensus Estimate for H&E Equipment Services’ current-year earnings has been revised upward by 3.1% in the past two months to $5.02 per share. HEES currently 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 two months. HNI has a VGM Score of A.
Willdan Group is a provider of professional technical and consulting services to utilities, private industry and public agencies at all levels of government. WLDN enables its clients to realize cost and energy savings by providing a wide range of specialized services.
The Zacks Consensus Estimate for its current-year earnings has improved 16.8% over the past month to $1.81. WLDN 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.
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 Modine Manufacturing, H&E Equipment, HNI and Willdan
For Immediate Release
Chicago, IL – April 3, 2024 – Stocks in this week’s article are Modine Manufacturing Co. (MOD - Free Report) , H&E Equipment Services, Inc. (HEES - Free Report) , HNI Corp. (HNI - Free Report) and Willdan Group, Inc. (WLDN - Free Report) .
Look Beyond Profit: Buy These 4 Stocks with Solid Cash Flows
Investors mostly flock to companies that earn profits, but 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 flow. This is because cash not only shields it from any market mayhem, but also indicates that its profits are being channeled in the right direction.
In this regard, stocks like Modine Manufacturing Co., H&E Equipment Services, Inc., HNI Corp. and Willdan Group, Inc. are worth buying.
In fact, if achieving profit is a company’s goal, then having a healthy cash flow is highly 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, in fact, indicates a company’s true financial health. This holds more relevance in the current context amid 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, 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 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 a cent north in the past month to $3.27 per share. MOD has a VGM Score of B.
H&E Equipment Services is one of the largest integrated equipment services companies in the United States. The company is focused on heavy construction and industrial equipment, as well as rents, sells, and provides parts and service support to the four core categories of specialized equipment. These are hi-lift or aerial platform equipment, cranes, earthmoving equipment and industrial lift trucks.
The Zacks Consensus Estimate for H&E Equipment Services’ current-year earnings has been revised upward by 3.1% in the past two months to $5.02 per share. HEES currently 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 two months. HNI has a VGM Score of A.
Willdan Group is a provider of professional technical and consulting services to utilities, private industry and public agencies at all levels of government. WLDN enables its clients to realize cost and energy savings by providing a wide range of specialized services.
The Zacks Consensus Estimate for its current-year earnings has improved 16.8% over the past month to $1.81. WLDN 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/2248946/look-beyond-profit-buy-these-4-stocks-with-solid-cash-flows
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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.