Back to top

Press Releases

Zacks Equity Research

Zacks.com featured highlights: Argan, BayerischeMotorenWerke AG, Gibraltar Industries and Hallador Energy Company

AGX BAMXF ROCK HNRG

Trades from $3

For Immediate Release

Chicago, IL – November 04, 2016 - Stocks in this week’s article include: Argan, Inc. (NYSE: (AGX - Free Report) -Free Report ), BayerischeMotorenWerke AG (OTCMKTS: (BAMXF - Free Report) -Free Report ), Gibraltar Industries, Inc. (NASDAQ: (ROCK - Free Report) -Free Report ) and Hallador Energy Company (NASDAQ: (HNRG - Free Report) -Free Report ).

Screen of the Week of Zacks Investment Research:

Bet on 4 Stocks with Rising Cash Flow to Scoop Big Gains

Investing in stocks with big profits and solid earnings surprises might appear a popular strategy in the ongoing reporting cycle. However, betting on stocks with a healthy cash level might be far more rewarding. This is because even though profit is a company’s goal, cash is the lifeblood for its existence.

In fact, even a profit-making company can face a dearth of cash flow if its profits are not channelized in the right direction and finally end up filing for bankruptcy. But a company with a healthy cash level not only enjoys the flexibility to make decisions, chase potential investments and run its growth engine but also weathers any market mayhem.

Obviously, in any business, cash moves in and out, but it is net cash flow that explains how much money that 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 alone is not sufficient to predict a company’s growth. In fact, consistent growth can only be achieved by a company when this positive cash flow is increasing because this improvement indicates management’s efficiency in regulating its cash movements and lesser dependency on external financing sources for running its business. Ultimately, it reflects a company’s true financial health.

Therefore, in the thick of the current earnings season, brace yourself with the following screen to bet on stocks with increasing cash flows.

Screening Parameters:

To find out 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 the winning stocks in their individual industry categories.

Here are four stocks that made it through the screen:

Argan, Inc. (NYSE: (AGX - Free Report) -Free Report ), headquartered in Rockville, MD, through its subsidiaries, offers a full range of services to the power industry including engineering, procurement and construction, commissioning, operations management, maintenance, project development and consulting services. Also, the company provides telecommunications infrastructure services, integrated fabrication, construction and plant services through its subsidiaries.

Argan has a VGM score of A. It came up with an earnings surprise of 84.29% in the fiscal second quarter ended Jul 31, 2016, and its estimates for the current fiscal year moved north in the past two months.

BayerischeMotorenWerke AG (OTCMKTS: (BAMXF - Free Report) -Free Report ) is a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets. It has three brands: BMW, MINI and Rolls-Royce. The company is headquartered in Munich, Germany and has a VGM score of B. It experienced a rise in estimates over the past 30 days.

Gibraltar Industries, Inc. (NASDAQ: (ROCK - Free Report) -Free Report ), with a VGM score of A, is a leading manufacturer, processor and distributor of metals and other engineered materials for building products, vehicular and other industrial markets. The company is headquartered in Buffalo, NY. With a decent earnings surprise history, the company remains a solid pick. It exceeded estimates in each of the past four quarters, with an average surprise of 67.30%.

Hallador Energy Company (NASDAQ: (HNRG - Free Report) -Free Report ) is engaged in the production of steam coal. The company is headquartered in Denver, CO and has a VGM score of A. It experienced a rise in estimates over the past 30 days.

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.

Zacks Restaurant Recommendations : In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

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. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.

Get the full Report on AGX - FREE

Get the full Report on BAMXF - FREE

Get the full Report on ROCK - FREE

Get the full Report on HNRG - FREE

Follow us on Twitter: https://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/performance for information about the performance numbers displayed in this press release.