Look Beyond Profit, Bet on 4 Stocks With Increasing Cash Flows

Core Viewpoint - The importance of analyzing a company's cash flow efficiency is emphasized, as even profitable companies can face bankruptcy without adequate cash flow [1][2]. Group 1: Cash Flow Importance - Cash flow is essential for a company's existence, development, and success, providing the means to meet obligations and reinvest in the business [1]. - Positive cash flow indicates an increase in liquid assets, allowing companies to manage debt, expenses, and downturns effectively [2]. - A company must not only have positive cash flow but also increasing cash flow to ensure future growth and reduce reliance on external financing [2]. Group 2: Screening Parameters - Stocks were screened for those with cash flow in the latest quarter at least equal to the 5-year average cash flow per common share, indicating a positive trend [4]. - Additional criteria included Zacks Rank 1, average broker rating of 1, current price greater than or equal to $5, and a VGM Score of B or better [4]. Group 3: Stock Picks - Griffon Corporation (GFF): A diversified management and holding company with a revised earnings estimate of $4.62 for fiscal 2024, reflecting a 13% upward revision [5]. - Photronics, Inc. (PLAB): A leading manufacturer of photomasks with a fiscal 2024 earnings estimate of $2.60, up by 15.6% [6]. - The Andersons, Inc. (ANDE): A regional grain merchandiser with a revised earnings estimate of $3.86 for 2024, up by 13.5% [7]. - AZZ Inc. (AZZ): A global provider of metal coating services with a fiscal 2024 earnings estimate of $4.30, reflecting a 5.4% increase [7].