For Immediate Release
Chicago, IL – June 4, 2019 - Stocks in this week’s article are North American Construction Group Ltd. NOA, Enova International Inc. ENVA, Johnson Outdoors Inc. JOUT and Argo Group International Holdings, Ltd. ARGO.
Look Beyond Profits, Bet on 4 Stocks with Rising Cash Flows
If achieving profit is a company’s goal then having a healthy cash flow is most essential to 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 its growth engine. So it can safely be called the lifeblood of any business.
Often investors flock to companies that earn profits. However, even a profitable business can succumb to failure if its cash flow is uneven and eventually file bankruptcy. Therefore, for prudent investment, one must go beyond profit numbers and look at a company’s efficiency in generating cash flows because cash protects it from market mayhem and indicates that profits are being channelized in the right direction.
To find this efficiency, one needs to consider a company’s net cash flow figure. 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/423807/look-beyond-profits-bet-on-4-stocks-with-rising-cash-flows
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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Enova International, Inc. (ENVA) : Free Stock Analysis Report
Johnson Outdoors Inc. (JOUT) : Free Stock Analysis Report
North American Construction Group Ltd. (NOA) : Free Stock Analysis Report
Argo Group International Holdings, Ltd. (ARGO) : Free Stock Analysis Report
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