For Immediate Release
Chicago, IL – December 1, 2022 – Stocks in this week’s article are Publicis Groupe SA PUBGY, Encore Wire Corp. WIRE, Tecnoglass Inc. TGLS and Hudson Technologies, Inc. HDSN.
4 Stocks with Swelling Cash Flows to Enhance Your Portfolio
Cash is the lifeblood of a company’s existence, development and success. It gives strength and vitality to a company, the flexibility to make decisions, the means to make potential investments and the fuel to run its growth engine. Thus, cash indicates a company’s true financial health.
In this regard, stocks like Publicis Group SA , Encore Wire Corp. , Tecnoglass Inc. and Hudson Technologies, Inc. are worth buying.
Investors flock to companies that earn profits but even a profitable business can succumb to failure if its cash flow is uneven and eventually files for bankruptcy. However, one can effectively judge a company’s resilience by evaluating its power of generating cash flow. This is because cash not only guards a company from market mayhem but also indicates that profits are being channelized in the right direction.
Amid 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 has indeed become all the more relevant.
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 a 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 15 stocks that qualified the screening:
Publicis Group SA is a global advertising and communications organization, offering a range of services to companies in 100 countries, with particular strengths in France, Germany, the United Kingdom, Spain, Italy and North America.
The Zacks Consensus Estimate for Publicis Groupe’s earnings for the current year has moved 1.9% north in the past month. PUBGY currently has a VGM Score of B.
Encore Wire is a low-cost manufacturer of copper electrical building wire and cable. The company is a significant supplier of residential wire for interior electrical wiring in homes, apartments and manufactured housing, as well as building wire for electrical distribution in commercial and industrial buildings.
The Zacks Consensus Estimate for Encore Wire’s 2022 earnings has been revised upwards 24.2% to $33.35 from $26.86 in the past two months. WIRE has a VGM Score of A.
Technoglass is a leading manufacturer of architectural glass, windows and associated aluminum products serving the global residential and commercial end markets.
The Zacks Consensus Estimate for Tecnoglass’ 2022 earnings has been revised upwards of 19.5% to $3.07 in the past month. TGLS has a VGM Score of A.
Hudson Technologies, headquartered in Woodcliff Lake, NJ, is a refrigerant services company. It provides solutions to recurring problems within the refrigeration industry, primarily in the United States.
The Zacks Consensus Estimate of $2.16 per share for Hudson Technologies’ current-year earnings has moved 20.7% north in the past month. HDSN has a VGM Score of A.
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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/2023563/4-stocks-with-swelling-cash-flows-to-enhance-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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Publicis Groupe SA (PUBGY) : Free Stock Analysis Report
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Technoglass Inc. (TGLS) : Free Stock Analysis Report
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