Zacks.com Featured Highlights Include: Popular, Tilly's, Enova, SkyWest And Argo
Zacks Investment Research | May 17, 2019 12:21AM ET
For Immediate Release
Chicago, IL – May 17, 2019 - Stocks in this week’s article are Popular, Inc. (NASDAQ:BPOP) , Tilly's Inc. (NYSE:TLYS) , Enova International Inc. (NYSE:ENVA) , SkyWest, Inc. (NASDAQ:SKYW) and Argo Group International Holdings, Ltd. (NYSE:ARGO) .
Bet on 5 Stocks with Rising Cash Flows to Scoop Big Gains
Investors obviously look for profitable businesses. However, even a profit-making company can end up being bankrupt while meeting its obligations if it has a dearth of cash flow. So, instead of brooding too much on profit numbers, effectively judging a company’s resiliency by assessing its efficacy in generating cash flows can be far more rewarding.
This is because, cash is the key to a company’s existence, development and success. It offers the flexibility to make decisions, the means to make investments and the fuel to run its growth engine, thereby indicating a company’s true financial health. In fact, cash not only shields a company from market mayhem, but also 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: Zacks Investment Research
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