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4 High-Rising Stocks with Rising Cash Flows to Buy Now
As the Federal Reserve gears up to cut interest rates ahead, investors might be tempted to park their hard-earned money in stocks based on profit numbers. However, if achieving profit is a company’s goal, then having a healthy cash flow is the most essential for its existence, development and success. This is because cash offers a company the flexibility to make decisions, the means to make investments, the fuel to run its growth engine and can, indeed, be called the lifeblood of any business.
Often, investors flock to companies with solid top-line growth and increasing profit numbers. However, even a profit-making company can have a scarcity of cash flow and face bankruptcy while meeting its obligations. Therefore, to invest in the right stocks, one must go beyond profit numbers and look at a company’s efficiency in generating cash flows because cash not only guards it from market mayhem but also suggests that profits are being channeled in the right direction. In fact, cash indicates a company’s true financial health.
In this regard, stocks like Willdan Group, Inc., Euroseas Ltd., Lifeway Foods, Inc. and RCM Technologies, Inc. are worth buying.
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:
Willdan Group is a provider of professional technical and consulting services to utilities, private industry and public agencies at all levels of government. WLDN enables its clients to realize cost and energy savings by providing a wide range of specialized services.
The Zacks Consensus Estimate for its current-year earnings has improved 5.9% over the past month to $1.97. WLDN has a VGM Score of A.
Euroseas was formed under the laws of the Republic of the Marshall Islands to consolidate the ship-owning interests of the Pittas family of Athens, Greece, which has been in the shipping business for the last 136 years. It operates in the dry cargo, dry bulk and container shipping markets.
The Zacks Consensus Estimate for Euroseas’ current-year earnings has moved 36.5% north in the past month. ESEA currently has a VGM Score of A.
Lifeway Foods produces Kefir, a drinkable product similar to, but distinct from, yogurt. LWAY currently has a VGM Score of A.
The Zacks Consensus Estimate for Lifeway's current-year earnings has moved up 23.8% over the past month.
RCM Technologies, based in Pennsauken, NJ, is a national provider of business, technology and resource solutions in information technology and professional engineering to customers in corporate and government sectors.
The Zacks Consensus Estimate for RCM Technologies’ 2024 earnings has been revised 2.2% upward to $2.33 in the past month. RCMT 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 include Willdan, Euroseas, Lifeway Foods and RCM Technologies
For Immediate Release
Chicago, IL – August 27, 2024 – Stocks in this week’s article are Willdan Group, Inc. (WLDN - Free Report) , Euroseas Ltd. (ESEA - Free Report) , Lifeway Foods, Inc. (LWAY - Free Report) and RCM Technologies, Inc. (RCMT - Free Report) .
4 High-Rising Stocks with Rising Cash Flows to Buy Now
As the Federal Reserve gears up to cut interest rates ahead, investors might be tempted to park their hard-earned money in stocks based on profit numbers. However, if achieving profit is a company’s goal, then having a healthy cash flow is the most essential for its existence, development and success. This is because cash offers a company the flexibility to make decisions, the means to make investments, the fuel to run its growth engine and can, indeed, be called the lifeblood of any business.
Often, investors flock to companies with solid top-line growth and increasing profit numbers. However, even a profit-making company can have a scarcity of cash flow and face bankruptcy while meeting its obligations. Therefore, to invest in the right stocks, one must go beyond profit numbers and look at a company’s efficiency in generating cash flows because cash not only guards it from market mayhem but also suggests that profits are being channeled in the right direction. In fact, cash indicates a company’s true financial health.
In this regard, stocks like Willdan Group, Inc., Euroseas Ltd., Lifeway Foods, Inc. and RCM Technologies, Inc. are worth buying.
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:
Willdan Group is a provider of professional technical and consulting services to utilities, private industry and public agencies at all levels of government. WLDN enables its clients to realize cost and energy savings by providing a wide range of specialized services.
The Zacks Consensus Estimate for its current-year earnings has improved 5.9% over the past month to $1.97. WLDN has a VGM Score of A.
Euroseas was formed under the laws of the Republic of the Marshall Islands to consolidate the ship-owning interests of the Pittas family of Athens, Greece, which has been in the shipping business for the last 136 years. It operates in the dry cargo, dry bulk and container shipping markets.
The Zacks Consensus Estimate for Euroseas’ current-year earnings has moved 36.5% north in the past month. ESEA currently has a VGM Score of A.
Lifeway Foods produces Kefir, a drinkable product similar to, but distinct from, yogurt. LWAY currently has a VGM Score of A.
The Zacks Consensus Estimate for Lifeway's current-year earnings has moved up 23.8% over the past month.
RCM Technologies, based in Pennsauken, NJ, is a national provider of business, technology and resource solutions in information technology and professional engineering to customers in corporate and government sectors.
The Zacks Consensus Estimate for RCM Technologies’ 2024 earnings has been revised 2.2% upward to $2.33 in the past month. RCMT 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/2327122/4-high-flying-stocks-with-rising-cash-flows-to-buy-now
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.