Solid Cash-Flow Growth Makes These 4 Stocks Worth Buying Now

Core Insights - The article emphasizes the importance of cash flow as a critical indicator of a company's financial health and growth potential, suggesting that companies with strong cash-generating capabilities are more resilient in uncertain economic conditions [1][2]. Group 1: Importance of Cash Flow - Cash is described as the lifeblood of any business, providing strength, vitality, and flexibility for investment decisions and growth [1]. - Positive cash flow indicates an increase in liquid assets, enabling a company to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow suggests declining liquidity [2]. - A company must not only have positive cash flow but also increasing cash flow to demonstrate management efficiency and reduced dependency on external financing [3]. Group 2: Screening Parameters for Stock Selection - Stocks were screened for those whose latest reported quarter cash flow was at least equal to or greater than the 5-year average cash flow per common share, indicating a positive trend [4]. - 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 [4]. Group 3: Selected Stocks - Adtalem Global Education Inc. (ATGE): A leading healthcare education provider with a projected fiscal 2024 sales growth of 8.3% and EPS growth of 16.4%, holding a VGM Score of A [5]. - HNI Corporation (HNI): A global provider of office furniture with a revised EPS estimate of $3.10 for 2024, reflecting a 5.8% upward revision and a VGM Score of A [6]. - Diebold Nixdorf, Incorporated (DBD): Engaged in banking and retail automation, with a 47% upward revision in 2024 earnings estimates and a VGM Score of A [6]. - GigaCloud Technology Inc. (GCT): A pioneer in B2B e-commerce solutions, with a 9.1% increase in 2024 EPS estimates to $3.25 and a VGM Score of A [7].