5 Stocks Worth Buying Now on Solid Cash Flow Growth

Core Insights - The article emphasizes the importance of cash flow over mere profitability when evaluating a company's financial health and resilience [1][4][5] - It highlights specific stocks that are recommended for investment based on their cash flow performance and overall financial health [2][9] Cash Flow Importance - Cash is described as the lifeblood of any business, providing flexibility for decision-making, investment opportunities, and growth [3] - Positive cash flow indicates an increase in liquid assets, enabling companies to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow suggests declining liquidity [5] Current Economic Context - The article notes that in light of global economic uncertainties and liquidity concerns, analyzing cash-generating efficiency is particularly relevant [4] Screening Parameters for Stocks - Stocks were screened for those with cash flow in the latest quarter at least equal to the 5-year average cash flow per share, indicating a positive trend [7] - 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 [8] Recommended Stocks - Sumitomo Corporation (SSUMY), IHI Corporation (IHICY), Nomad Foods Limited (NOMD), Great Lakes Dredge & Dock Corporation (GLDD), and Natural Gas Services Group, Inc. (NGS) are highlighted as stocks with rising cash flow above their five-year average [2][9] - Each of these companies has seen upward revisions in EPS estimates, reflecting improving outlooks and strong financial health [9] Company Profiles - Sumitomo Corporation (SSUMY): Engaged in diverse business activities globally, with a 6% improvement in the Zacks Consensus Estimate for fiscal 2026 earnings per share [10][11] - IHI Corporation (IHICY): Focuses on heavy machinery, with a 28.6% increase in the Zacks Consensus Estimate for fiscal 2026 earnings per share [11] - Nomad Foods (NOMD): Specializes in frozen foods, with a 4% upward revision in current-year earnings estimate to $2.07 per share, indicating a 7.3% year-over-year increase [12] - Great Lakes Dredge & Dock (GLDD): The largest provider of dredging services in the U.S., with a 39.1% upward revision in the 2025 earnings estimate to 96 cents per share [13] - Natural Gas Services Group (NGS): Manufactures natural gas compressors, with an 18.6% improvement in the 2025 earnings estimate [14]