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Zacks.com featured highlights include Star Bulk Carriers, Encore Wire, StoneX Group and Franklin Covey

·6 min read

For Immediate Release

Chicago, IL – August 4, 2022 – Stocks in this week’s article are Star Bulk Carriers Corp. SBLK, Encore Wire Corporation WIRE, StoneX Group Inc. SNEX and Franklin Covey Co. FC.

Forget Profit, Bet on These 4 Stocks With Rising Cash Flows

It might seem appropriate to lay a wager on stocks based on profit numbers and earnings surprises in this stretch of the current reporting cycle. However, betting on stocks with a healthy cash level can be far more rewarding because although profit is a company’s goal, cash is its lifeblood for existence and a measure of resiliency. This has become all the more important amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns resulting from geopolitical tensions or the pandemic.

In this regard, stocks like Star Bulk Carriers Corp., Encore Wire Corporation, StoneX Group Inc. and Franklin Covey Co. are worth buying.

Even a profit-making company can face a dearth of cash flow if its profits are not channelized in the right direction and finally end up filing for bankruptcy. However, a company with a healthy cash level not only enjoys the flexibility to make decisions, chase potential investments and run its growth engine but also weathers any market mayhem.

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.

Here are our four picks out of the 13 stocks that qualified the screening:

Star Bulk Carriers is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector.

The Zacks Consensus Estimate of $7.57 per share for Star Bulk Carriers’ current-year earnings has moved 10.2% in the past month. SBLK has a VGM Score of B.

Encore Wire is a low-cost manufacturer of copper electrical building wire and cable. The company is a significant supplier of residential wire for interior electrical wiring in homes, apartments and manufactured housing, as well as building wire for electrical distribution in commercial and industrial buildings.

The Zacks Consensus Estimate for Encore Wire’s 2022 earnings has been revised upward to $26.86 from $19.18 in the past week. WIRE has a VGM Score of A.

StoneX Group is a financial services organization that provides execution, risk management and advisory services, market intelligence, and clearing services across multiple asset classes and markets around the world.

The Zacks Consensus Estimate for StoneX Group’s fiscal 2022 earnings has been revised 6.2% upward to $8.45 in the past month. SNEX has a VGM Score of A.

Franklin Covey is an international learning and performance solutions company dedicated to increasing the effectiveness of individuals and organizations.

The Zacks Consensus Estimate for FC’s fiscal 2022 earnings has been revised upward by 34 cents to $1.21 per share in the past two months. FC has a VGM Score of B.

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.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1962696/forget-profit-bet-on-these-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.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Franklin Covey Company (FC) : Free Stock Analysis Report
 
Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report
 
Encore Wire Corporation (WIRE) : Free Stock Analysis Report
 
StoneX Group Inc. (SNEX) : Free Stock Analysis Report
 
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