Yahoo Finance Zacks.com featured highlights include Griffon, Adtalem Global Education, HNI, Diebold Nixdorf and GigaCloud Technology
For Immediate Release
Chicago, IL – June 6, 2024 – Stocks in this week’s article are Griffon Corp. GFF, Adtalem Global Education Inc. ATGE, HNI Corp. HNI, Diebold Nixdorf, Inc. DBD and GigaCloud Technology Inc. GCT.
5 Buy-Rated Stocks with Impressive Cash Flow Growth
If achieving profit is a company's goal, then having a healthy cash flow is highly essential for its existence, development and success. This is because cash offers the flexibility to make decisions, the means to make investments and the fuel to run a company's growth engine. Thus, it can safely be called the lifeblood of any business.
In this regard, stocks like Griffon Corp., Adtalem Global Education Inc., HNI Corp., Diebold Nixdorf, Inc. and GigaCloud Technology Inc. are worth buying.
Investors often flock to companies that earn profits. However, a profitable business can also succumb to failure if its cash flow is uneven. The company will eventually have to file for bankruptcy. Therefore, one must go beyond profit numbers for prudent investment and look at a company's efficiency in generating cash flows, as cash acts as a shield from market mayhem and indicates that profits are being channeled in the right direction.
Moreover, analyzing a company's cash-generating efficiency holds more relevance in the current context with uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns resulting from geopolitical tensions.
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 five stocks that qualified the screening:
Griffon Corp., a diversified management and holding company, operates through wholly-owned subsidiaries. It provides consumer and professional, as well as home and building products.
The Zacks Consensus Estimate for Griffon Corp.'s fiscal 2024 earnings per share has been revised 5.3% upward to $4.80 in the past month. GFF has a VGM Score of A.
Adtalem Global Education, based in Chicago, IL, is a leading healthcare education provider and workforce solutions innovator. The institutions of the company offer a wide array of programs across medical and healthcare services.
The Zacks Consensus Estimate for Adtalem Global's fiscal 2024 sales and EPS suggests growth of 8.3% and 16.4%, respectively, from the year-ago period. ATGE has a VGM Score of A.
HNI Corp. provides products and solutions for home and workplace environments. HNI, headquartered in Muscatine, IA, is a leading global provider and designer of office furniture, and the leading manufacturer and marketer of hearth products.
The Zacks Consensus Estimate for HNI Corp.'s 2024 earnings per share has been revised 5.8% upward to $3.10 in the past two months. HNI has a VGM Score of B.
Diebold Nixdorf, based in North Canton, OH, is engaged in automating, digitizing and transforming the way people bank and shop worldwide. DBD operates through two segments — Banking and Retail.
Diebold Nixdorf's 2024 earnings estimates have jumped 47% upward over the past two months. DBD has a VGM Score of A.
GigaCloud, headquartered in El Monte, CA, is a pioneer of global end-to-end B2B e-commerce solutions for large parcel merchandise. Its platform integrates various aspects of e-commerce, including product discovery, payment processing and logistics, to streamline the buying and selling process for large items.
The Zacks Consensus Estimate for GCT's 2024 earnings per share has moved up 9.1% over the past month to $3.25. GigaCloud 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/2283802/5-buy-rated-stocks-with-impressive-cash-flow-growth
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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Diebold Nixdorf, Incorporated (DBD) : Free Stock Analysis Report
HNI Corporation (HNI) : Free Stock Analysis Report
Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report
Griffon Corporation (GFF) : Free Stock Analysis Report
GigaCloud Technology Inc. (GCT) : Free Stock Analysis Report
