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Chicago, IL – May 2, 2025 – The stocks in this week’s article are Griffon Corp. GFF, Nomad Foods Ltd. NOMD, DXP Enterprises, Inc. DXPE and Limbach Holdings, Inc. LMB.
If achieving profit is a company’s goal, then having a healthy cash flow is most essential for its existence, development and success. This is because cash offers strength, vitality and flexibility to make investment decisions as well as the fuel to run its growth engine.
In this regard, stocks such as Griffon Corp., Nomad Foods Ltd., DXP Enterprises, Inc. and Limbach Holdings, 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 irregular and eventually file for bankruptcy. However, a company’s resiliency can be fairly judged when its efficacy in generating cash flows is assessed. This is because cash not only shields a company from market mayhem but also indicates that its profits are being channeled in the right direction.
Moreover, analyzing a company’s cash-generating efficiency holds more relevance in the current context amid 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 four out of the 14 stocks that qualified for 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 2025 earnings per share has been revised marginally upward in the past month. GFF has a VGM Score of A.
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 week. 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 month. DXPE has a VGM Score of B.
Limbach Holdings provides building systems. The company engineers, constructs and services mechanical, plumbing, air conditioning, heating, building automation, electrical and control systems.
The Zacks Consensus Estimate for Limbach Holdings’ 2025 earnings has moved 9.9% north in the past two months. LMB has a VGM Score of B.
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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/2460124/scoop-up-big-gains-with-4-stocks-enjoying-rising-cash-flows
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Contact: Jim Giaquinto
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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