For immediate release
Chicago, IL – January 31, 2022 – The stocks in this week’s article are Fidelity National Financial, Inc. FNF, Academy Sports and Outdoors, Inc. ASO, Internet Initiative Japan, Inc. IIJIY and Euroseas Ltd. ESEA
Look Beyond Profit: Bet on 4 Stocks with Growing Cash Flow
Analyzing earnings numbers and assessing surprises may seem like a good option in the current reporting cycle, but it does not ensure that earnings are effectively channeled into reserves to fund growth. Indeed, even a for-profit business can run out of cash and go bankrupt while still meeting its obligations.
Therefore, one should examine a company’s ability to generate cash flow before investing in the right stocks. Indeed, cash flow is the most indispensable factor for any business. It gives strength and vitality and is the key to its existence, development and success.
In this regard, actions like Fidelity National Financial, Inc., Sports and Outdoors Academy, Inc., Japan Internet Initiative, Inc. and Euroseas Ltd. are worth buying.
Indeed, the uncertainties of the global economy, the market disruptions and dislocations and the liquidity problems that have resulted from the coronavirus pandemic have all the more established the relevance of analyzing the cash-generating efficiency of a business.
To understand this efficiency, one must consider a company’s net cash flow. While in any business money flows in and out, net cash flow explains how much money a business actually generates.
If a company is experiencing positive cash flow, it denotes an increase in its liquidity, which gives it the means to meet its debts, cover its expenses, reinvest in the business, withstand downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decrease in the liquidity of the company, which reduces its flexibility to support these movements.
However, having a positive cash flow simply does not guarantee the future growth of a business. To follow the growth curve, a company must see its cash flow increase as this indicates management’s efficiency in regulating its cash flow and less dependence on outside funding for the management of its business.
Therefore, keep up to date with the next screen to bet on stocks with rising cash flow.
For the rest of this article on Screen of the Week, please visit Zacks.com at: https://www.zacks.com/stock/news/1858913/look-beyond-profit-bet-on-4-stocks-with-increasing-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 the options mentioned herein. An affiliated investment advisory firm may hold or have shorted securities and/or hold long and/or short positions in options mentioned herein.
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Zacks names ‘only one best choice for doubling up’
From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.
As one investor put it, “curing and preventing hundreds of diseases…what should this market be worth?” This company could rival or surpass other recent Zacks stocks which are expected to double like Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.
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Fidelity National Financial, Inc. (FNF): Free Stock Analysis Report
Euroseas Ltd. (ESEA): Free Stock Analysis Report
Internet Initiative Japan, Inc. (IIJIY): Free Stock Analysis Report
Academy Sports and Outdoors, Inc. (ASO): Free Stock Analysis Report
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