For Immediate Release
Chicago, IL – March 13, 2019– Stocks in this week’s article include Kamada Ltd. KMDA, Plantronics Inc. PLT, SkyWest, Inc. SKYW, Middlefield Banc Corp. MBCN and Walker & Dunlop, Inc. WD. Kevin Matras screens for companies showing their 'first' profit and explains why they are ones to watch.
Screen of the Week written by Kevin Matras of Zacks Investment Research:
Scoop Up Big Gains with 5 Stocks Enjoying Rising Cash Flows
If achieving profit is a company’s goal then having healthy cash flow is most essential to its existence, development and success. This is because cash offers strength, vitality and flexibility to make investment decisions as well as the fuel to run its growth engine.
Often investors flock to companies that earn profits. But even a profit-making company can have a dearth of cash flow and face bankruptcy while meeting its obligations. Specifically, a company’s resiliency can be fairly judged when its efficacy in generating cash flows is assessed. This is because cash not only shields a company from market mayhem but also indicates that profits are being channelized in the right direction. Cash is indeed the lifeblood of any business and indicates a company’s true financial health.
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:https://www.zacks.com/stock/news/358870/scoop-up-big-gains-with-5-stocks-enjoying-rising-cash-flows
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Plantronics, Inc. (PLT) : Free Stock Analysis Report
Middlefield Banc Corp. (MBCN) : Free Stock Analysis Report
Walker & Dunlop, Inc. (WD) : Free Stock Analysis Report
Kamada Ltd. (KMDA) : Free Stock Analysis Report
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