We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Stocks With Rising Cash Flows to Brave Coronavirus Blues
Read MoreHide Full Article
If achieving profit is a company’s goal, then having a healthy cash flow is highly essential for its existence, development and success. This is because cash offers the flexibility to make decisions, the means to make investments and the fuel to run a company’s growth engine. Thus, it can safely be called the lifeblood of any business.
Investors often flock to companies that earn profits. However, a profitable business can also succumb to failure if its cash flow is uneven and eventually, file for bankruptcy. Therefore, one must go beyond profit numbers for prudent investment and look at a company’s efficiency in generating cash flows, as cash shields from market mayhem and indicates that profits are being channelized in the right direction.
In addition, with the coronavirus pandemic wreaking havoc on the global economy, and the related market disruption adversely impacting liquidity, investing your hard-earned money in stocks based on their cash-flow generating efficiency has become all the more essential.
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 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.
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 individual industry categories.
Here are four of the 11 stocks that qualified the screening:
eXp World Holdings Inc. (EXPI - Free Report) provides cloud-based real estate brokerage services primarily in the United States and Canada. The stock has a VGM Score of A. The Zacks Consensus Estimate for the ongoing-year earnings per share of 11 cents has been revised upward over the last 30 days. Also, the estimate for current-year sales indicates a 32.4% jump, year on year.
Great Lakes Dredge & Dock Corp. (GLDD - Free Report) provides dredging services in the United States and internationally. It has a VGM Score of A. The Zacks Consensus Estimate for 2020 earnings of $1.06 per share indicates a year-over-year 23.3% increase.
KoninklijkeVopak N.V. (VOPKY - Free Report) engages in tank terminal operations and storage of oil. It has a VGM Score of A. The company’s expected earnings growth rate for the running year is 7.6%. The Zacks Consensus Estimate for ongoing-year earnings has improved 6.3% over the past 60 days.
Tutor Perini Corporation (TPC - Free Report) is a construction company providing diversified general contracting, construction management, and design-build services to private customers and public agencies worldwide. The stock has a VGM Score of A. The Zacks Consensus Estimate of $2.10 for this year’s earnings moved 16.7% north over the past 30 days.
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.
Image: Bigstock
4 Stocks With Rising Cash Flows to Brave Coronavirus Blues
If achieving profit is a company’s goal, then having a healthy cash flow is highly essential for its existence, development and success. This is because cash offers the flexibility to make decisions, the means to make investments and the fuel to run a company’s growth engine. Thus, it can safely be called the lifeblood of any business.
Investors often flock to companies that earn profits. However, a profitable business can also succumb to failure if its cash flow is uneven and eventually, file for bankruptcy. Therefore, one must go beyond profit numbers for prudent investment and look at a company’s efficiency in generating cash flows, as cash shields from market mayhem and indicates that profits are being channelized in the right direction.
In addition, with the coronavirus pandemic wreaking havoc on the global economy, and the related market disruption adversely impacting liquidity, investing your hard-earned money in stocks based on their cash-flow generating efficiency has become all the more essential.
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 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.
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 individual industry categories.
Here are four of the 11 stocks that qualified the screening:
eXp World Holdings Inc. (EXPI - Free Report) provides cloud-based real estate brokerage services primarily in the United States and Canada. The stock has a VGM Score of A. The Zacks Consensus Estimate for the ongoing-year earnings per share of 11 cents has been revised upward over the last 30 days. Also, the estimate for current-year sales indicates a 32.4% jump, year on year.
Great Lakes Dredge & Dock Corp. (GLDD - Free Report) provides dredging services in the United States and internationally. It has a VGM Score of A. The Zacks Consensus Estimate for 2020 earnings of $1.06 per share indicates a year-over-year 23.3% increase.
KoninklijkeVopak N.V. (VOPKY - Free Report) engages in tank terminal operations and storage of oil. It has a VGM Score of A. The company’s expected earnings growth rate for the running year is 7.6%. The Zacks Consensus Estimate for ongoing-year earnings has improved 6.3% over the past 60 days.
Tutor Perini Corporation (TPC - Free Report) is a construction company providing diversified general contracting, construction management, and design-build services to private customers and public agencies worldwide. The stock has a VGM Score of A. The Zacks Consensus Estimate of $2.10 for this year’s earnings moved 16.7% north over the past 30 days.
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.
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.