For Immediate Release
Chicago, IL – July 20, 2022 – Stocks in this week’s article are StoneX Group Inc. SNEX, Photronics, Inc. PLAB, Franklin Covey Co. FC and REX American Resources Corp. REX.
Buy 4 Stocks with Rising Cash Flows to Enrich Your Portfolio
We are already into the second-quarter reporting cycle and stocks with top-line growth and increasing profit numbers might be popular choices. But choosing stocks based on a company's efficiency in generating cash flows can be far more rewarding.
In this regard, stocks like StoneX Group Inc., Photronics, Inc., Franklin Covey Co. and REX American Resources Corp. are worth buying.
This is because even a profit-making company can have a dearth of cash flow and become bankrupt while meeting its obligations if its profits are not channelized in the right direction. But a company can effectively weather any market mayhem if it has a solid cash position as that lends a company the flexibility to make decisions, the means to invest and the fuel to run its growth engine. It is indeed the key to a company's existence, development and success, and reveals a company's true financial health.
Furthermore, with uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns resulting from geopolitical tensions or the pandemic, analyzing a company's cash-generating efficiency holds more relevance.
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.
Here are our four picks out of the 14 stocks that qualified the screening:
StoneX Group is a financial services organization that provides execution, risk management and advisory services, market intelligence, and clearing services across multiple asset classes and markets around the world.
The Zacks Consensus Estimate for StoneX Group's fiscal 2022 earnings has been revised 6.12% upward to $8.45 in the past month. SNEX has a VGM Score of A.
Photronics is a leading worldwide manufacturer of photomasks. Photomasks are high-precision quartz plates that contain microscopic images of electronic circuits.
The Zacks Consensus Estimate of $1.90 per share for Photronics' current-fiscal earnings has moved 41 cents north in the last 60 days. PLAB has a VGM Score of B.
Franklin Covey is an international learning and performance solutions company dedicated to increasing the effectiveness of individuals and organizations.
The Zacks Consensus Estimate for FC's fiscal 2022 earnings has been revised upward by 34 cents to $1.21 per share in the last 30 days. FC has a VGM Score of B.
REX American Resources Corp., formerly known as REX Stores Corp., is engaged in the production and sale of ethanol and distillers grains. The company owns interests in corn- or sorghum-based ethanol production facilities in Illinois, Iowa and Texas.
The Zacks Consensus Estimate for REX American Resources' fiscal 2023 earnings has been revised upward to $7.13 per share from $5.62 in the last 60 days. REX currently has a VGM Score of B.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1954153/buy-4-stocks-with-rising-cash-flows-to-enrich-your-portfolio
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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Photronics, Inc. (PLAB): Free Stock Analysis Report
Franklin Covey Company (FC): Free Stock Analysis Report
REX American Resources Corporation (REX): Free Stock Analysis Report
StoneX Group Inc. (SNEX): Free Stock Analysis Report
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