Zacks.com Featured Highlights Include: SYNNEX, Air Transport Services, Everi And Arcos Dorados

 | Jan 15, 2020 08:57PM ET

For Immediate Release

Chicago, IL – January 16, 2020 –Stocks in this week’s article are SYNNEX Corp. (NYSE:SNX) , Air Transport Services Group, Inc. (NASDAQ:ATSG) , Everi Holdings Inc. (NYSE:EVRI) and Arcos Dorados Holdings Inc. (NYSE:ARCO) .

Bet on 4 Stocks with Rising Cash Flows to Scoop Up Big Gains

Cash is the lifeblood of any business. It offers the flexibility to make decisions, the means to make potential investments and fuel to run its growth engine. In fact, it holds the key to a company’s existence, development and success.

Investors obviously flock to companies that earn profits, but even a profitable business can succumb to failure, if its cash flow is uneven, and eventually file for bankruptcy. However, one can effectively judge a company’s resilience by evaluating its power of generating cash flows, as cash not only guards 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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