For Immediate Release
Chicago, IL – February 19, 2020 – Stocks in this week’s article are SYNNEX Corp. SNX, Forterra Inc. FRTA, Everi Holdings Inc. EVRI, Great Lakes Dredge & Dock Corp. GLDD and Anhui Conch Cement Company Ltd. AHCHY.
5 Stocks with Swelling Cash Flows to Enrich Your Portfolio
The bulk of the Q4 earnings releases are behind us and investors are now interested in betting on stocks based on profit numbers and surprises. However, looking beyond profits and figuring out a company’s cash-flow generating ability can be far more rewarding.
This is because cash indicates a company’s true financial health. It offers the flexibility to make decisions, the means to make potential investments and the fuel to run its growth engine. In fact, even a company generating profits might face bankruptcy, while meeting obligations, if it is low on cash flow. Nonetheless, a sturdy cash balance can safeguard companies in times of market turbulence.
Therefore, one needs to consider its net cash flow figure in order to effectively find out a company’s resilience and efficiency in generating 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.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/771440/5-stocks-with-swelling-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.
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Great Lakes Dredge & Dock Corporation (GLDD) : Free Stock Analysis Report
SYNNEX Corporation (SNX) : Free Stock Analysis Report
Anhui Conch Cement Co. (AHCHY) : Free Stock Analysis Report
Everi Holdings Inc. (EVRI) : Free Stock Analysis Report
FORTERRA INC (FRTA) : Free Stock Analysis Report
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