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Chicago, IL – September 24, 2025 – Stocks in this week’s article are Century Aluminum Co. CENX, Daktronics, Inc. DAKT, Great Lakes Dredge & Dock Corp. GLDD and NCS Multistage Holdings, Inc. NCSM.
The Fed's recent rate cut has generated a surge of optimism on Wall Street. Amid this, investors mostly prefer to flock to companies that earn profits. However, even a profitable business can succumb to failure if its cash flow is uneven and, eventually, file for bankruptcy.
One can effectively judge a company’s resilience by looking at its efficiency in generating cash flow. This is because cash not only shields it from any market mayhem but also indicates that its profits are being channeled in the right direction.
In this regard, stocks such as Century Aluminum Co., Daktronics, Inc., Great Lakes Dredge & Dock Corp. and NCS Multistage Holdings, Inc. are worth buying.
If achieving profit is a company’s goal, then having a healthy cash flow is highly essential for its existence, development and success. Cash gives a company more flexibility with respect to business decisions and potential investments, as well as the fuel to run its growth engine. Cash indicates a company’s true financial health. This efficiency holds more relevance in the current context amid uncertainties in the global economy, market disruptions and dislocations.
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 four out of 10 stocks that qualified the screening:
Century Aluminum is engaged in the production of primary aluminum in the United States and Iceland. The company produces standard-grade and value-added primary aluminum products, as well as carbon products such as anodes and cathodes.
The Zacks Consensus Estimate for Century Aluminum’s current-year earnings has moved 11.7% north in the past month. CENX currently has a VGM Score of A.
Daktronics has strong leadership positions and is one of the world's largest suppliers of electronic scoreboards, computer-programmable displays, and large-screen video displays and control systems.
The Zacks Consensus Estimate for fiscal 2026 earnings has improved 6.9% over the past month. DAKT currently 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 6.3% to $1.02 per share over the past two months. GLDD has a VGM Score of B.
NCS Multistage Holdings delivers engineered products and support services that help oil and gas operators optimize well completions and field development. Serving mainly exploration and production companies, NCS Multistage focuses on onshore wells, especially those with horizontal laterals in unconventional oil and natural gas formations.
The Zacks Consensus Estimate for current-year earnings has improved 62% over the past two months. NCSM currently 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/2755796/focus-past-the-fed-bet-on-4-stocks-with-rising-cash-flows
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.
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
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