Published on 14 Mar 2024 on Zacks via Yahoo Finance

Bet on These 4 High-Flying Stocks With Increasing Cash Flows

Cash is the lifeblood of any business. It offers the flexibility to make decisions, the means to make potential investments and the fuel to run the growth engine. In fact, it holds the key to a company’s existence, development and success, and indicates its true financial health.Before investing in the right stocks, one must go beyond profit numbers and look at a company’s efficiency in generating cash flows. This is because 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 looking at its efficiency in generating cash flows. This is because cash not only shields it from market mayhem but also indicates that profits are being channeled in the right direction.In this regard, stocks like Modine Manufacturing Company MOD, Griffon Corporation GFF, HNI Corporation HNI and Betterware de México, S.A.P.I. de C.V. BWMX are worth buying.Moreover, analyzing a company’s cash-generating efficiency has indeed gained more relevance amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns in recent years resulting from geopolitical tensions or the health crisis.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.

Story continues

Screening Parameters: