Zacks.com featured highlights include Deutsche Telekom, Banco do Brasil, Encore Wire and Tecnoglass.
For Immediate Release
Chicago, IL – March 13, 2023 – Stocks in this week’s article are Deutsche Telekom AG DTEGY, Banco do Brasil S.A. BDORY, Encore Wire Corp. WIRE and Tecnoglass Inc. TGLS.
4 Stocks with Increasing Cash Flows to Enrich Your Portfolio
Cash is the lifeblood of any business. It offers the flexibility to make decisions, the means to make potential investments and the fuel to run its growth engine. In fact, it holds the key to a company's existence, development and success, and indicates its true financial health.
In this regard, stocks like Deutsche Telekom AG, Banco do Brasil S.A., Encore Wire Corp. and Tecnoglass Inc. are worth buying.
Before investing in the right stocks, one must go beyond profit numbers and look at a company's efficiency in generating cash flows. Even a profitable business can succumb to failure if its cash flow is uneven and, eventually, file for bankruptcy. However, one can effectively judge a company's resilience by looking at its efficiency in generating cash flows. This is because cash not only shields it from market mayhem but also indicates that profits are being channelized in the right direction.
Particularly, uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns resulting from geopolitical tensions or the health crisis have reestablished the relevance of analyzing a company's cash-generating efficiency.
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 four picks out of the 17 stocks that qualified the screening:
Deutsche Telekom AG, headquartered in Bonn, Germany, is Europe's largest communications company and one of the largest communications carriers worldwide.
The Zacks Consensus Estimate for 2023 earnings has improved 1.1% over the past month. Currently, DTEGY carries a VGM Score of A.
Banco do Brasil S.A provides retail and commercial banking services in Brazil and internationally. The services offered include consumer, commercial and agribusiness loans, asset management, foreign exchange, insurance, lease financing and Internet-banking services.
The Zacks Consensus Estimate for Banco do Brasil's 2023 earnings has been revised 8.9% upward in the past month. Banco do Brasil has an impressive growth rate of 10% for the next five years. Currently, BDORY has a VGM Score of A.
Encore Wire is a low-cost manufacturer of copper electrical building wire and cable. The company is a significant supplier of residential wire for interior electrical wiring in homes, apartments and manufactured housing, as well as building wire for electrical distribution in commercial and industrial buildings.
The Zacks Consensus Estimate for Encore Wire's 2023 earnings has been revised 28.1% upward to $19.76 in the past month. WIRE has a VGM Score of A.
Tecnoglass is a leading manufacturer of architectural glass, windows and associated aluminum products serving the global residential and commercial end markets.
The Zacks Consensus Estimate for Tecnoglass' 2023 earnings has been revised 10.1% upward to $3.83 in the past week. TGLS 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/2063951/4-stocks-with-increasing-cash-flows-to-enrich-your-portfolio
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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Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report
Banco Do Brasil SA (BDORY) : Free Stock Analysis Report
Encore Wire Corporation (WIRE) : Free Stock Analysis Report
Tecnoglass Inc. (TGLS) : Free Stock Analysis Report
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