Zacks.com Featured Highlights Include: Shoe Carnival, SYNNEX, SkyWest, Middlefield And Univest
Zacks Investment Research | Feb 10, 2019 10:26PM ET
For Immediate Release
Chicago, IL – February 11, 2019 - Stocks in this week’s article are Shoe Carnival (NYSE:CCL), Inc. (NASDAQ:SCVL) , SYNNEX Corp. (NYSE:SNX) , SkyWest, Inc. (NASDAQ:SKYW) , Middlefield Banc Corp. (NASDAQ:MBCN) and Univest Financial Corp. (NASDAQ:UVSP) .
Look Beyond Profit: Bet on These 5 Stocks with Rising Cash Flows
Crunching profit numbers and evaluating surprises might appear a good option in the ongoing reporting cycle. But looking beyond profits and evaluating a company’s cash position can be far more rewarding.
This is because, even a profit-making company can have a dearth of cash flow and face bankruptcy while meeting its obligations. But a healthy cash position indicates that profits are being efficiently channelized to a company’s reserves, which not only shield it from market mayhem but also offer flexibility to make decisions, chase potential investments and run its growth engine. Cash is indeed an indicator of true financial health.
Therefore to ensure that you are investing in the right stocks, take a look at a company’s proficiency in generating cash flows. While in any business cash moves in and out, it is net cash flow that explains how much money the company is actually making.
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
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.