Scoop Up Big Gains With 4 Stocks Witnessing Rise in Cash Flow

Investors generally prefer businesses that earn profits. Even a profit-making company can end up bankrupt while meeting its obligations if it has a dearth of cash flow. Rather than brooding too much on profit numbers, effectively judging a company’s resiliency by assessing its efficacy in generating cash flows can be far more rewarding. In this regard, stocks like The Marcus Corporation MCS, Climb Global Solutions, Inc. CLMB, Graham Corporation GHM and Euroseas Ltd. ESEA are worth buying.This is because cash is the key to a company’s existence, development and success. It offers the flexibility to make decisions, the means to make investments and the fuel to run its growth engine, indicating a company’s true financial health. Cash not only shields a company from market mayhem but also indicates that its profits are being channelized in the right direction.Moreover, in today’s environment, marked by global economic uncertainties, market disruptions and liquidity challenges stemming from geopolitical tensions, analyzing a company’s cash-generating efficiency has indeed become 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 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.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 stocks that qualified for the screening:The Marcus Corporation engages in the lodging and entertainment industries. It operates through two segments: Movie Theatres, and Hotels and Resorts. The company's movie theatre division owns or manages screens at locations in several states, as well as a family entertainment center. Marcus' lodging division owns or manages hotels and resorts in several states, as well as a vacation club.The long-term growth rate of Marcus’ EPS is 15%. MCS has a VGM Score of B.Climb Global Solutions is a value-added IT distribution and solutions company specializing in emerging and disruptive technologies. The company provides IT distribution and solutions for emerging companies, principally in the Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries.The Zacks Consensus Estimate for the current year has improved 26.2% over the past week. CLMB has a VGM Score of A.Graham designs and builds vacuum and heat transfer equipment for process industries and energy markets worldwide. The company's products include steam jet ejector vacuum systems and liquid ring vacuum pumps, surface condensers, Heliflows, water heaters and various types of heat exchangers. The Zacks Consensus Estimate for Graham’s fiscal 2025 earnings has been revised upward by 8.4% in the past week. GHM has a VGM Score of B.Euroseas was formed under the laws of the Republic of the Marshall Islands to consolidate the ship-owning interests of the Pittas family of Athens, Greece, which has been in the shipping business for the last 136 years. It operates in the dry cargo, dry bulk and container shipping markets.The Zacks Consensus Estimate for Euroseas’ current-year earnings has moved 13.7% north in the past two months. ESEA currently has a VGM Score of B.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.Must-See: Solar Stocks Poised to SkyrocketThe solar industry stands to bounce back as tech companies and the economy transition away from fossil fuels to power the AI boom.Trillions of dollars will be invested in clean energy over the coming years – and analysts predict solar will account for 80% of the renewable energy expansion. This creates an outsized opportunity to profit in the near-term and for years to come. But you have to pick the right stocks to get into.Discover Zacks’ hottest solar stock recommendation FREE.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 Marcus Corporation (The) (MCS): Free Stock Analysis Report Graham Corporation (GHM): Free Stock Analysis Report Euroseas Ltd. (ESEA): Free Stock Analysis Report Climb Global Solutions, Inc. (CLMB): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks