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Forget Profit, Bet on These 4 Stocks With Rising Cash Flows
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Key Takeaways
Shinhan Financial, Enova, National Energy Services and Marcus passed a screen for rising cash flows.
Each stock's latest quarterly cash flow per share matched or topped its five-year average.
Enova's 2026 earnings estimate rose 5.7, while Marcus' climbed 8.2% over the past 30 days.
It might seem appropriate to lay a wager on stocks based on profit numbers and earnings surprises in this stretch of the current reporting cycle. However, betting on stocks with a healthy cash level can be far more rewarding because although profit is a company’s goal, cash is its lifeblood and a measure of resiliency. This has become all the more important amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns.
In this regard, stocks like Shinhan Financial Group Co., Ltd. (SHG - Free Report) , Enova International, Inc. (ENVA - Free Report) , National Energy Services Reunited Corp. (NESR - Free Report) and The Marcus Corporation (MCS - Free Report) are worth buying.
Even a profit-making company can face a dearth of cash flow if its profits are not channeled in the right direction and end up filing for bankruptcy. However, 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.
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 five-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 four out of the seven stocks that qualified the screening:
Shinhan Financial Group is Korea's largest financial services company. Shinhan Bank is the Group's flagship subsidiary. Alongside banking, the Group operates subsidiaries in securities, credit cards, asset management, leasing, bancassurance and project finance.
The Zacks Consensus Estimate for Shinhan Financial Group’s 2026 earnings has moved upward by 4.5% to $8.53 per share over the past seven days. SHG’s earnings outpaced the Zacks Consensus Estimate in the last reported quarter by 7.30%. SHG currently has a VGM Score of B.
Enova International is a prominent financial technology company that provides online financial services to non-prime consumers and small businesses.
The Zacks Consensus Estimate for Enova International’s 2026 earnings has been revised upward by 5.7% to $17.36 per share in the past seven days. ENVA surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 8.01%. ENVA has a VGM Score of A.
National Energy Services is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. NESR helps its customers unlock the full potential of their reservoirs by providing Production Services such as Cementing, Coiled Tubing, Filtration, Completions, Stimulation and Fracturing, and Nitrogen Services.
The Zacks Consensus Estimate for National Energy Services’ 2026 earnings has improved 3.6% over the past 30 days to $1.74. NESR currently has a VGM Score of A.
The Marcus Corporation engages in the lodging and entertainment industries. It operates through two segments: Movie Theatres, and Hotels and Resorts. The company's movie theatre division owns or manages screens at locations in several states, as well as a family entertainment center. Marcus' lodging division owns or manages hotels and resorts in several states.
The Zacks Consensus Estimate for Marcus Corporation’s 2026 earnings has moved northward by 8.2% to 53 cents per share over the past 30 days. MCS has a VGM Score of B.
View the Zacks #1 Rank List
Image: Bigstock
Forget Profit, Bet on These 4 Stocks With Rising Cash Flows
Key Takeaways
It might seem appropriate to lay a wager on stocks based on profit numbers and earnings surprises in this stretch of the current reporting cycle. However, betting on stocks with a healthy cash level can be far more rewarding because although profit is a company’s goal, cash is its lifeblood and a measure of resiliency. This has become all the more important amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns.
In this regard, stocks like Shinhan Financial Group Co., Ltd. (SHG - Free Report) , Enova International, Inc. (ENVA - Free Report) , National Energy Services Reunited Corp. (NESR - Free Report) and The Marcus Corporation (MCS - Free Report) are worth buying.
Even a profit-making company can face a dearth of cash flow if its profits are not channeled in the right direction and end up filing for bankruptcy. However, 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.
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 five-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 four out of the seven stocks that qualified the screening:
Shinhan Financial Group is Korea's largest financial services company. Shinhan Bank is the Group's flagship subsidiary. Alongside banking, the Group operates subsidiaries in securities, credit cards, asset management, leasing, bancassurance and project finance.
The Zacks Consensus Estimate for Shinhan Financial Group’s 2026 earnings has moved upward by 4.5% to $8.53 per share over the past seven days. SHG’s earnings outpaced the Zacks Consensus Estimate in the last reported quarter by 7.30%. SHG currently has a VGM Score of B.
Enova International is a prominent financial technology company that provides online financial services to non-prime consumers and small businesses.
The Zacks Consensus Estimate for Enova International’s 2026 earnings has been revised upward by 5.7% to $17.36 per share in the past seven days. ENVA surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 8.01%. ENVA has a VGM Score of A.
National Energy Services is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. NESR helps its customers unlock the full potential of their reservoirs by providing Production Services such as Cementing, Coiled Tubing, Filtration, Completions, Stimulation and Fracturing, and Nitrogen Services.
The Zacks Consensus Estimate for National Energy Services’ 2026 earnings has improved 3.6% over the past 30 days to $1.74. NESR currently has a VGM Score of A.
The Marcus Corporation engages in the lodging and entertainment industries. It operates through two segments: Movie Theatres, and Hotels and Resorts. The company's movie theatre division owns or manages screens at locations in several states, as well as a family entertainment center. Marcus' lodging division owns or manages hotels and resorts in several states.
The Zacks Consensus Estimate for Marcus Corporation’s 2026 earnings has moved northward by 8.2% to 53 cents per share over the past 30 days. MCS has a VGM Score of B.