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4 Stocks with Rising Cash Flows to Enrich Your Portfolio
We are already into the second-quarter reporting cycle and stocks with top-line growth and increasing profit numbers might be popular choices. But choosing stocks based on a company's efficiency in generating cash flows can be far more rewarding.
In this regard, stocks like Ardmore Shipping Corp., TXO Partners, L.P., GeoPark Ltd. and biote Corp. are worth buying.
This is because even a profit-making company can have a dearth of cash flow and become bankrupt while meeting its obligations if its profits are not channeled in the right direction. But a company can effectively weather any market mayhem if it has a solid cash position as that lends a company the flexibility to make decisions, the means to invest and the fuel to run its growth engine. It is indeed the key to a company's existence, development and success, and reveals its true financial health.
Furthermore, with uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns, analyzing a company's cash-generating efficiency holds more relevance.
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 seven stocks that qualified the screening:
Ardmore Shipping, based in Pembroke, Bermuda, engages in the seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies.
The Zacks Consensus Estimate for ASC's 2024 earnings per share has moved up 1.2% over the past week to $3.29. Ardmore has a VGM Score of A.
TXO Partners, L.P., based in Fort Worth, TX, is a master limited partnership focused on the acquisition, development, optimization and exploitation of conventional oil, natural gas and natural gas liquid reserves principally in North America.
The Zacks Consensus Estimate for TXO Partners' 2024 earnings per share has been revised 27.3% upward to $1.63 in the past month. TXO has a VGM Score of A.
GeoPark Limited, based in Colombia, is an independent oil and gas explorer, operator and consolidator. 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 to $3.23 and indicates 50.9% year-over-year growth. GPRK has a VGM Score of A.
biote Corp. is a solutions provider in preventive health care through the delivery of personalized hormone optimization and therapeutic wellness.
The Zacks Consensus Estimate for biote Corp.'s 2024 earnings has been revised 17.4% upward to 27 cents per share over the past two months. BTMD 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.
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
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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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/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
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Zacks.com featured highlights include Ardmore Shipping, TXO Partners, GeoPark and biote
For Immediate Release
Chicago, IL – July 25, 2024 – Stocks in this week’s article are Ardmore Shipping Corp. (ASC - Free Report) , TXO Partners, L.P. (TXO - Free Report) , GeoPark Ltd. (GPRK - Free Report) and biote Corp. (BTMD - Free Report) .
4 Stocks with Rising Cash Flows to Enrich Your Portfolio
We are already into the second-quarter reporting cycle and stocks with top-line growth and increasing profit numbers might be popular choices. But choosing stocks based on a company's efficiency in generating cash flows can be far more rewarding.
In this regard, stocks like Ardmore Shipping Corp., TXO Partners, L.P., GeoPark Ltd. and biote Corp. are worth buying.
This is because even a profit-making company can have a dearth of cash flow and become bankrupt while meeting its obligations if its profits are not channeled in the right direction. But a company can effectively weather any market mayhem if it has a solid cash position as that lends a company the flexibility to make decisions, the means to invest and the fuel to run its growth engine. It is indeed the key to a company's existence, development and success, and reveals its true financial health.
Furthermore, with uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns, analyzing a company's cash-generating efficiency holds more relevance.
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 seven stocks that qualified the screening:
Ardmore Shipping, based in Pembroke, Bermuda, engages in the seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies.
The Zacks Consensus Estimate for ASC's 2024 earnings per share has moved up 1.2% over the past week to $3.29. Ardmore has a VGM Score of A.
TXO Partners, L.P., based in Fort Worth, TX, is a master limited partnership focused on the acquisition, development, optimization and exploitation of conventional oil, natural gas and natural gas liquid reserves principally in North America.
The Zacks Consensus Estimate for TXO Partners' 2024 earnings per share has been revised 27.3% upward to $1.63 in the past month. TXO has a VGM Score of A.
GeoPark Limited, based in Colombia, is an independent oil and gas explorer, operator and consolidator. 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 to $3.23 and indicates 50.9% year-over-year growth. GPRK has a VGM Score of A.
biote Corp. is a solutions provider in preventive health care through the delivery of personalized hormone optimization and therapeutic wellness.
The Zacks Consensus Estimate for biote Corp.'s 2024 earnings has been revised 17.4% upward to 27 cents per share over the past two months. BTMD 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/2307602/buy-4-stocks-with-rising-cash-flows-to-enrich-your-portfolio
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
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://www.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/performancefor information about the performance numbers displayed in this press release.