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Chicago, IL – May 20, 2025 – Stocks in this week’s article are Nomad Foods Ltd. NOMD, DXP Enterprises, Inc. DXPE, Great Lakes Dredge & Dock Corp. GLDD and Kingstone Companies, Inc. KINS.
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 Ltd., DXP Enterprises, Inc., Great Lakes Dredge & Dock Corp. and Kingstone Companies, Inc. 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.
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.
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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/2474039/solid-cash-flow-growth-makes-these-4-stocks-worth-buying-now
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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