Published on 22 Mar 2024 on Zacks via Yahoo Finance
4 Top-Performing Liquid Stocks to Build a Robust Portfolio
A company with strong liquidity always has the potential to provide higher returns as stable financial resources help fuel business growth. It reflects a company’s capability to meet debt obligations by converting its assets into liquid cash and equivalents.
However, one should be careful of investing in a stock with a high liquidity level as it may also indicate that the company is failing to utilize its assets efficiently.
Apart from sufficient cash in hand, investors might also consider a company’s capital deployment abilities before putting their money on the stock. A healthy company with favorable liquidity may prove to be a profitable pick for one’s portfolio.