For Immediate Release
Chicago, IL – February 26, 2019– Stocks in this week’s article include Shoe Carnival, Inc. (SCVL - Free Report) , SYNNEX Corp. (SNX - Free Report) , SkyWest, Inc. (SKYW - Free Report) , Middlefield Banc Corp. (MBCN - Free Report) and SP Plus Corp. (SP - Free Report) . Kevin Matras screens for companies showing their 'first' profit and explains why they are ones to watch.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
5 Stocks with Swelling Cash Flows to Add to Your Portfolio
Cash is the lifeblood for a company’s existence, development and success. It gives strength and vitality to a company, the flexibility to make decisions, the means to make potential investments and the fuel to run its growth engine, thereby indicating a company’s true financial health.
Obviously, investors 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. But one can effectively judge a company’s resilience by evaluating its power of generating cash flows. This is because cash not only guards a company from market mayhem, but also indicates that profits are being channelized in the right direction.
To find this efficiency, one needs to consider a company’s net cash flow figure. 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 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 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.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/356742/5-stocks-with-swelling-cash-flows-to-add-to-your-portfolio
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