Zacks.com Featured Highlights Include: Mueller Industries, Enova, CBIZ And Gibraltar
Zacks Investment Research | Mar 17, 2020 11:52PM ET
For Immediate Release
Chicago, IL – March 18, 2020 - Stocks in this week’s article are Mueller Industries, Inc. (NYSE:MLI) , Enova International Inc. (NYSE:ENVA) , CBIZ, Inc. (NYSE:CBZ) and Gibraltar Industries Inc. (NASDAQ:ROCK) .
Buy 4 Stocks with Rising Cash Flows Amid Market Mayhem
The coronavirus pandemic is wreaking havoc across the globe, causing sharp drawdowns in markets. The Federal Reserve made unprecedented rate cuts this month, besides announcing $700-billion quantitative-easing program and several other measures to combat COVID-19’ adverse impact on economy.
Amid these, laying a wager on stocks based on its cash-flow generating efficiency seems prudent. This is because cash is the most indispensable factor for any company. It gives strength and vitality, and is the key for its existence, development and success. It is indeed a true indicator of a company’s financial health and a measure of resiliency. In fact, cash not only indicates that profits are being channelized in the right direction but also shields a company from 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 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: Zacks Investment Research
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