Solid Cash Flow Growth Makes These 4 Stocks Worth Buying Now

Cash is the lifeblood of any business. It offers strength, vitality and flexibility to make investment decisions, as well as the fuel to run its growth engine. Moreover, cash shields a company from market turmoil and indicates that profits are being channeled in the right direction.In this regard, stocks such as Nomad Foods Limited NOMD, DXP Enterprises, Inc. DXPE, Great Lakes Dredge & Dock Corporation GLDD and Kingstone Companies, Inc. KINS are worth buying.One must go beyond profit numbers and look at a company’s efficiency in generating cash flows to invest in the right stocks. This is because even a profit-making company can face a dearth of cash flow and fail to meet its obligations. However, a company’s resiliency can be fairly judged when its efficacy in generating cash flows is assessed.Moreover, amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns resulting from geopolitical tensions, analyzing a company’s cash-generating efficiency holds more relevance in the current context.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 toi 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.Screening Parameters:To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the 5-year average cash flow per common share. This implies a positive trend and increasing cash over a period of time.In addition to this, we chose:Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.Average Broker Rating 1: This indicates that brokers are also highly hopeful about the company’s future performance.Current Price greater than or equal to $5: This sieves out low-priced stocks.VGM Score of B or better: This score is also of great assistance in selecting stocks. Importantly, this scoring system helps in picking winning stocks in their industry categories.Here are four out of the 11 stocks that qualified for the screening:Nomad Foods manufactures and distributes frozen foods, primarily in the United Kingdom, Italy, Germany, Sweden, France and Norway. The Zacks Consensus Estimate for 2025 earnings per share has improved 4.0% over the past month. NOMD has a VGM Score of A.DXP Enterprises provides innovative pumping solutions, supply-chain services, and maintenance, repair, operating and production services.The consensus estimate for DXP Enterprises’ current-year earnings has been revised 22.5% upward over the past two months. DXPE has a VGM Score of B.Great Lakes Dredge & Dock is the largest provider of dredging services in the United States, conducting business to maintain and deepen shipping channels, reclaim land from the ocean and renourish storm-damaged coastline.  The Zacks Consensus Estimate for Great Lakes Dredge & Dock’s 2025 earnings has been revised upward by 34.8% to 93 cents per share over the past month. GLDD has a VGM Score of A.Kingstone Companies, through its subsidiary, provides property and casualty insurance products to individuals in the United States. It focuses on automobile, motorcycle and homeowners’ insurance. The Zacks Consensus Estimate for 2025 earnings per share has improved 5.6% over the past two months to $1.90. KINS has a VGM Score of A.Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.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.Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report Great Lakes Dredge & Dock Corporation (GLDD): Free Stock Analysis Report Kingstone Companies, Inc (KINS): Free Stock Analysis Report Nomad Foods Limited (NOMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks