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4 Stocks With Increasing Cash Flows to Enrich Your Portfolio
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If achieving profit is a company’s goal, then having a healthy cash flow is essential to its existence, development and success. This is because cash offers strength, vitality and flexibility to make investment decisions as well as the fuel to run the growth engine.
Investors flock to companies that earn profits, but even a profitable business can succumb to failure if its cash flow is irregular and eventually files for bankruptcy. However, a company’s resiliency can be fairly judged when its efficacy in generating cash flows is assessed. This is because cash not only shields a company from market mayhem but also indicates that profits are being channeled in the right direction. In light of ongoing global economic uncertainty and market turbulence, this viewpoint is particularly relevant.
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.
Screening Parameters:
To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the 5-year average cash flow per common share. This implies a positive trend and increasing cash over a period of time.
In addition to this, we chose:
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1: This indicates that brokers are also highly hopeful about the company’s future performance.
Current Price greater than or equal to $5: This sieves out low-priced stocks.
VGM Score of B or better: This score is also of great assistance in selecting stocks. Importantly, this scoring system helps in picking winning stocks in their industry categories.
Here are four stocks that qualified for the screening:
Geely Automobile Holdings Limited is engaged in automobile manufacturing and related areas. It is a fully integrated independent auto firm with auto eco-systems like designing, research and development, production, distribution and servicing. Geely Automobile Holdings Limited is headquartered in Wanchai, Hong Kong.
The Zacks Consensus Estimate for GELYY’s 2025 earnings implies year-over-year growth of 149.31%. Estimates for 2026 earnings per share have moved up by 8.8% over the past two months. GELYY has a VGM Score of B.
Sterling operates through subsidiaries within segments specializing in E-Infrastructure, Building and Transportation Solutions principally in the United States, mainly across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands.
The Zacks Consensus Estimate for Sterling’s current-year earnings has moved 14% north in the past week. STRL currently has a VGM Score of A.
Allot Ltd. is a provider of network intelligence and security solutions for service providers and enterprises. Allot Ltd., formerly known as ALLOT COMM LTD, is based in HOD HASHARON, Israel.
The Zacks Consensus Estimate for Allot’s 2025 earnings of six cents implies year-over-year growth of 50%. Estimates for 2026 earnings per share have moved up by 15.4% over the past week. ALLT has a VGM Score of B.
Kingstone Companies, through its subsidiary, provides property and casualty insurance products to individuals in the United States.
The Zacks Consensus Estimate for 2025 earnings per share has improved 16.1% over the past week to $1.80. KINS has a VGM Score of A.
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.
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4 Stocks With Increasing Cash Flows to Enrich Your Portfolio
If achieving profit is a company’s goal, then having a healthy cash flow is essential to its existence, development and success. This is because cash offers strength, vitality and flexibility to make investment decisions as well as the fuel to run the growth engine.
Investors flock to companies that earn profits, but even a profitable business can succumb to failure if its cash flow is irregular and eventually files for bankruptcy. However, a company’s resiliency can be fairly judged when its efficacy in generating cash flows is assessed. This is because cash not only shields a company from market mayhem but also indicates that profits are being channeled in the right direction. In light of ongoing global economic uncertainty and market turbulence, this viewpoint is particularly relevant.
In this regard, stocks like Geely Automobile Holdings Limited (GELYY - Free Report) , Sterling Infrastructure, Inc. (STRL - Free Report) , Allot Ltd. (ALLT - Free Report) and Kingstone Companies, Inc. (KINS - Free Report) 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.
Screening Parameters:
To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the 5-year average cash flow per common share. This implies a positive trend and increasing cash over a period of time.
In addition to this, we chose:
Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Average Broker Rating 1: This indicates that brokers are also highly hopeful about the company’s future performance.
Current Price greater than or equal to $5: This sieves out low-priced stocks.
VGM Score of B or better: This score is also of great assistance in selecting stocks. Importantly, this scoring system helps in picking winning stocks in their industry categories.
Here are four stocks that qualified for the screening:
Geely Automobile Holdings Limited is engaged in automobile manufacturing and related areas. It is a fully integrated independent auto firm with auto eco-systems like designing, research and development, production, distribution and servicing. Geely Automobile Holdings Limited is headquartered in Wanchai, Hong Kong.
The Zacks Consensus Estimate for GELYY’s 2025 earnings implies year-over-year growth of 149.31%. Estimates for 2026 earnings per share have moved up by 8.8% over the past two months. GELYY has a VGM Score of B.
Sterling operates through subsidiaries within segments specializing in E-Infrastructure, Building and Transportation Solutions principally in the United States, mainly across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands.
The Zacks Consensus Estimate for Sterling’s current-year earnings has moved 14% north in the past week. STRL currently has a VGM Score of A.
Allot Ltd. is a provider of network intelligence and security solutions for service providers and enterprises. Allot Ltd., formerly known as ALLOT COMM LTD, is based in HOD HASHARON, Israel.
The Zacks Consensus Estimate for Allot’s 2025 earnings of six cents implies year-over-year growth of 50%. Estimates for 2026 earnings per share have moved up by 15.4% over the past week. ALLT has a VGM Score of B.
Kingstone Companies, through its subsidiary, provides property and casualty insurance products to individuals in the United States.
The Zacks Consensus Estimate for 2025 earnings per share has improved 16.1% over the past week to $1.80. KINS has a VGM Score of A.
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.
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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.