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Buy These 4 Stocks with Rising Cash Flows Ahead of Q2 Earnings
Crunching profit numbers and evaluating surprises might be a preferred method for scooping up big gains in the impending Q2 earnings season. However, looking beyond profits and assessing a company’s cash position can be far more rewarding because it indicates its true financial health.
In this regard, stocks like Steelcase Inc., GigaCloud Technology Inc., GeoPark Ltd. and Virco Mfg. Corp. are worth buying.
Even a profitable business can fail if its cash flow is uneven and eventually file for bankruptcy. Nevertheless, a company with a healthy cash position has the capability to effectively tide over any market mayhem and still be on its growth curve, besides enjoying the flexibility to make decisions, chase potential investments and run its growth engine.
Moreover, analyzing a company’s cash-generating efficiency 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 four out of eight stocks that qualified the screening:
Steelcase, headquartered in Grand Rapids, MI, is a designer and manufacturer of products used to create high-performance work environments. Its product portfolio includes furniture systems, seating, storage, desks, casegoods, interior architectural products, technology products and related products and services.
The Zacks Consensus Estimate for Steelcase’s fiscal 2025 earnings per share has been revised 8.7% upward to $1.00 in the past month. SCS has a VGM Score of B.
GigaCloud, headquartered in El Monte, CA, is a pioneer of global end-to-end B2B e-commerce solutions for large parcel merchandise. Its platform integrates various aspects of e-commerce, including product discovery, payment processing and logistics, to streamline the buying and selling process for large items.
The Zacks Consensus Estimate for GCT’s 2024 earnings per share has moved up 9.1% over the past two months to $3.25. GigaCloud has a VGM Score of B.
GeoPark Ltd, based in Colombia, is an oil and gas explorer and producer. It has operations across Latin America.
The Zacks Consensus Estimate for GeoPark’s 2024 earnings per share has been revised 2.2% north over the past two months and indicates 50.9% year-over-year growth. GPRK has a VGM Score of A.
Virco Manufacturing designs, produces and distributes quality furniture for the contract and education markets worldwide.
The Zacks Consensus Estimate for Virco Manufacturing’s fiscal 2025 earnings has been revised upward 16.3% to $1.86 per share over the past month. VIRC has a VGM Score of A.
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 Steelcase, GigaCloud, GeoPark and Virco
For Immediate Release
Chicago, IL – July 10, 2024 – Stocks in this week’s article are Steelcase Inc. (SCS - Free Report) , GigaCloud Technology Inc. (GCT - Free Report) , GeoPark Ltd. (GPRK - Free Report) and Virco Mfg. Corp. (VIRC - Free Report) .
Buy These 4 Stocks with Rising Cash Flows Ahead of Q2 Earnings
Crunching profit numbers and evaluating surprises might be a preferred method for scooping up big gains in the impending Q2 earnings season. However, looking beyond profits and assessing a company’s cash position can be far more rewarding because it indicates its true financial health.
In this regard, stocks like Steelcase Inc., GigaCloud Technology Inc., GeoPark Ltd. and Virco Mfg. Corp. are worth buying.
Even a profitable business can fail if its cash flow is uneven and eventually file for bankruptcy. Nevertheless, a company with a healthy cash position has the capability to effectively tide over any market mayhem and still be on its growth curve, besides enjoying the flexibility to make decisions, chase potential investments and run its growth engine.
Moreover, analyzing a company’s cash-generating efficiency 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 four out of eight stocks that qualified the screening:
Steelcase, headquartered in Grand Rapids, MI, is a designer and manufacturer of products used to create high-performance work environments. Its product portfolio includes furniture systems, seating, storage, desks, casegoods, interior architectural products, technology products and related products and services.
The Zacks Consensus Estimate for Steelcase’s fiscal 2025 earnings per share has been revised 8.7% upward to $1.00 in the past month. SCS has a VGM Score of B.
GigaCloud, headquartered in El Monte, CA, is a pioneer of global end-to-end B2B e-commerce solutions for large parcel merchandise. Its platform integrates various aspects of e-commerce, including product discovery, payment processing and logistics, to streamline the buying and selling process for large items.
The Zacks Consensus Estimate for GCT’s 2024 earnings per share has moved up 9.1% over the past two months to $3.25. GigaCloud has a VGM Score of B.
GeoPark Ltd, based in Colombia, is an oil and gas explorer and producer. It has operations across Latin America.
The Zacks Consensus Estimate for GeoPark’s 2024 earnings per share has been revised 2.2% north over the past two months and indicates 50.9% year-over-year growth. GPRK has a VGM Score of A.
Virco Manufacturing designs, produces and distributes quality furniture for the contract and education markets worldwide.
The Zacks Consensus Estimate for Virco Manufacturing’s fiscal 2025 earnings has been revised upward 16.3% to $1.86 per share over the past month. VIRC has a VGM Score of A.
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/2298353/buy-these-4-stocks-with-rising-cash-flows-ahead-of-q2-earnings
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.