Forget Profit, Pick These 4 Stocks With Increasing Cash Flows

Core Viewpoint - The focus on cash flow rather than just profits is essential for assessing a company's financial health and potential for growth in the current economic environment [1][2][3]. Group 1: Importance of Cash Flow - Cash is crucial for a company's existence, development, and success, serving as a measure of resiliency [2]. - Positive cash flow indicates an increase in liquid assets, enabling a company to meet obligations, reinvest, and endure downturns [4]. - A company must not only have positive cash flow but also increasing cash flow to ensure future growth and reduce dependency on external financing [5]. Group 2: Screening Parameters for Stocks - Stocks were screened for those whose cash flow in the latest quarter was at least equal to or greater than the 5-year average cash flow per common share, indicating a positive trend [6]. - Additional criteria included a Zacks Rank of 1 (Strong Buy), an average broker rating of 1, a current price of at least $5, and a VGM Score of B or better [7]. Group 3: Selected Stocks - Limbach Holdings, Inc. (LMB) provides building systems and has seen a 2.5% upward revision in the 2024 earnings estimate [8]. - DXP Enterprises, Inc. (DXPE) offers innovative pumping solutions and has had a 12.7% upward revision in current-year earnings [9]. - Lands' End, Inc. (LE) operates as a multi-channel retailer with a 23.3% increase in fiscal 2025 earnings estimates [10]. - Euroseas Ltd. (ESEA) operates in the shipping market and has experienced a 13.7% upward revision in current-year earnings [11].