For Immediate Release
Chicago, IL – October 9, 2020 – Stocks in this week’s article are Peugeot S.A.
PUGOY
, SYNNEX Corporation
SNX
, Aviat Networks, Inc.
AVNW
, Polymetal International plc
AUCOY
and G4S plc
GFSZY
.
5 Stocks to Buy with Increasing Cash Flows Ahead of Q3 Earnings
Crunching profit numbers and evaluating surprises might be a popular method for scooping big gains in the third-quarter earnings season. However, looking beyond profit and assessing a company’s cash position, which reveals its true financial health, can be far more rewarding.
Even a profitable business can fail, if its cash flow is uneven, and eventually file for bankruptcy. However, a company can navigate any market mayhem and still be on its growth curve if it has sufficient cash flow. This is because cash gives a company the flexibility to make decisions, the means to make potential investments and the fuel to run its growth engine. It indeed holds the key for its existence, development and success.
Moreover, analyzing a company’s generating efficiency cash holds more relevance in the current context as the coronavirus pandemic is giving rise to uncertainties in the global economy, market disruptions and dislocations, and liquidity concerns.
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.
For the rest of this Screen of the Week article please visit Zacks.com at:
https://www.zacks.com/stock/news/1072896/5-stocks-to-buy-with-increasing-cash-flows-ahead-of-q3-earnings
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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Strong Stocks that Should Be in the News
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