For Immediate Release
Chicago, IL – June 14, 2021 – Stocks in this week’s article are Titan Machinery Inc. TITN, Townsquare Media, Inc. TSQ, Citi Trends, Inc. CTRN and Veritiv Corporation VRTV.
4 Buy-Rated Stocks to Pick with Impressive Cash Flow Growth
If achieving profit is a company's goal then having a healthy cash flow is the most essential to its existence, development and success. This is because cash offers the flexibility to make decisions, the means to make investments as well as the fuel to run its growth engine. Thus, it can safely be called the lifeblood of any business.
Often investors flock to companies that earn profits. However, even a profitable business can succumb to failure if its cash flow is uneven and eventually file bankruptcy. Therefore, one must go beyond profit numbers for prudent investment and look at a company's efficiency in generating cash flows because cash protects it from market mayhem and indicates that profits are being channelized in the right direction.
In addition, with the coronavirus pandemic wreaking havoc on the global economy, and the related market disruption adversely impacting liquidity, investing your hard-earned money in stocks based on their cash-flow generating efficiency has become all the more essential.
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 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/1690605/4-buy-rated-stocks-to-pick-with-impressive-cash-flow-growth
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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Citi Trends, Inc. (CTRN) : Free Stock Analysis Report
Titan Machinery Inc. (TITN) : Free Stock Analysis Report
Veritiv Corporation (VRTV) : Free Stock Analysis Report
Townsquare Media, Inc. (TSQ) : Free Stock Analysis Report
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