For Immediate Release
Chicago, IL – January 31, 2020 – Stocks in this week’s article are SYNNEX Corp. (
SNX Quick Quote SNX - Free Report) , Air Transport Services Group, Inc. ( ATSG Quick Quote ATSG - Free Report) , Everi Holdings Inc. ( EVRI Quick Quote EVRI - Free Report) , Great Lakes Dredge & Dock Corp. ( GLDD Quick Quote GLDD - Free Report) and Anhui Conch Cement Company Ltd. ( AHCHY Quick Quote AHCHY - Free Report) . Look Beyond Profits: Buy 5 Stocks with Increasing Cash Flows
Putting your hard-earned money in stocks with high profits and earnings surprises is in the trend this reporting cycle. However, betting on stocks with a healthy cash level can be far more rewarding because even though profit is a company’s goal, cash is its lifeblood for existence and a measure of resiliency.
This is because even a profit-making company can have a dearth of cash flows and struggle to meet its obligations if its profits are not channelized in the right direction to fund future growth. However, a company with adequate cash flows can effectively tide over any market mayhem besides enjoying flexibility to make decisions, chase potential investments and run its growth engine.
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/740644/look-beyond-profit-buy-5-stocks-with-increasing-cash-flows 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. 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.
Strong Stocks that Should Be in the News
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Contact: Jim Giaquinto
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