Core Viewpoint - The importance of cash flow in assessing a company's financial health and investment potential is emphasized, highlighting that cash flow is a critical indicator of a company's ability to sustain growth and manage obligations effectively [1][2][3]. Cash Flow Analysis - Companies must be evaluated not just on profit but on their efficiency in generating cash flows, as a lack of cash flow can lead to financial difficulties even for profitable firms [2]. - In the current global economic climate, characterized by uncertainties and liquidity concerns, analyzing a company's cash-generating efficiency is particularly relevant [3]. - 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 and reduced operational flexibility [4]. Growth and Management Efficiency - A company must not only maintain positive cash flow but also ensure that it is increasing over time, reflecting effective cash management and reduced reliance on external financing [5]. Screening Parameters for Investment - A screening process was established to identify stocks with increasing cash flow, focusing on those whose latest reported cash flow is at least equal to the 5-year average cash flow per share, indicating a positive trend [6]. - Additional criteria include 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]. Selected Stocks - **Nomad Foods Limited (NOMD)**: Engages in frozen food manufacturing and distribution, with a Zacks Consensus Estimate for 2025 earnings per share improving by 4.0% recently and a VGM Score of A [8]. - **DXP Enterprises, Inc. (DXPE)**: Provides innovative pumping solutions and services, with a current-year earnings estimate revised upward by 22.5% over the past two months and a VGM Score of B [9]. - **Great Lakes Dredge & Dock Corporation (GLDD)**: The largest provider of dredging services in the U.S., with a 34.8% upward revision in the 2025 earnings estimate to 93 cents per share and a VGM Score of A [10]. - **Kingstone Companies, Inc. (KINS)**: Offers property and casualty insurance products, with a 5.6% improvement in the 2025 earnings estimate to $1.90 and a VGM Score of A [10].

Core Insights - Keurig Dr Pepper Inc. (KDP) is currently undervalued with a forward 12-month P/E ratio of 16.04X, lower than the industry average of 18.31X and the sector average of 17.39X [1][4] - KDP shares have appreciated 5.9% in the last three months, outperforming the Zacks Beverages - Soft Drinks industry's growth of 1% and the broader Consumer Staples industry's return of 3.5% [4] Valuation Picture - The stock offers compelling value to investors seeking exposure to the consumer staple sector [4] Performance Analysis - KDP's strong performance in Q1 2025 is attributed to its consumer-focused innovation model, which has driven market share gains in key categories such as liquid refreshment beverages, K-Cup pods, and brewers [6][10] - The company achieved a 4.8% year-over-year increase in net sales, or 6.4% on a constant-currency basis, in Q1 2025, with a 3.6% rise in volume/mix and a 2.8% benefit from favorable pricing [10] Segment Growth - The U.S. Refreshment Beverages segment saw sales reach $2.32 billion in Q1 2024, marking an 11% year-over-year increase, supported by an 8% rise in volume/mix and a 3% increase in net price realization [11] - Strong performance in liquid refreshment beverages was driven by brands like Peñafiel and core offerings such as Dr Pepper and Crush, with the acquisition of GHOST enhancing the energy drink portfolio [12] Future Outlook - The Zacks Consensus Estimate for KDP's 2025 earnings has increased by a penny in the past 30 days, indicating positive sentiment [13] - For 2025, the consensus estimates imply 5.61% and 6.25% year-over-year growth in sales and EPS, respectively [13] Strategic Initiatives - KDP's growth reflects a strategic combination of innovation, brand activity, and strong commercial execution, with a focus on cost efficiency and disciplined capital management [7] - The company has strengthened its distribution network with new territory expansion in Tennessee and enhanced its Direct Store Delivery network in Mexico [9]

Core Insights - Service Corporation International (SCI) reported strong first-quarter 2025 results, with both revenue and earnings exceeding expectations, indicating robust performance in the funeral segment [1][2]. Financial Performance - Adjusted earnings per share were 96 cents, surpassing the Zacks Consensus Estimate of 90 cents, and increased from 89 cents in the prior year, reflecting a 7.9% year-over-year growth [2]. - Total revenues reached $1,074.2 million, a 2.8% increase from $1,045.4 million in the same quarter last year, also beating the consensus estimate of $1,054 million [2]. - Gross profit rose 6.3% to $291.4 million, with gross margin expanding by 90 basis points to 27.1% [3]. Segment Performance - **Funeral Operations**: Total funeral revenues were $639.5 million, exceeding the consensus estimate of $607.3 million, and up from $604.7 million in Q1 2024. Gross profit in this segment increased 16.8% to $154 million, with gross margin improving by 230 basis points to 24.1% [5]. - **Cemetery Operations**: Total cemetery revenues were $434.7 million, slightly below the consensus estimate of $446.4 million, and down from $440.6 million in the previous year. Gross profit decreased 3.4% to $137.4 million, with gross margin declining by 70 basis points to 31.6% [10]. Operational Metrics - The number of funeral services performed increased to 97,854 from 94,366 in the prior year, with average revenues per service rising to $5,748 from $5,608 [5]. - Comparable funeral services performed grew 1.8% to 95,624, while comparable cemetery results showed core revenues decreased 2.5% to $397.7 million [7][11]. Financial Health - As of the end of the quarter, the company had cash and cash equivalents of $227.2 million, long-term debt of $4.74 billion, and total equity of $1.65 billion [13]. - Net cash provided by operating activities was $311.1 million, with total capital expenditure amounting to $78.2 million [14]. Guidance - For 2025, SCI maintains its guidance for adjusted earnings per share at $3.70-$4.00, aligning with its long-term growth framework of 8% to 12% [15]. - Total capital expenditure for 2025 is projected at $315 million, with allocations for capital improvements, cemetery property development, and digital investments [17].

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in short-term investing, highlighting that while price momentum can be profitable, it requires strong fundamentals to maintain that momentum [1][2]. Group 1: Stock Performance - Nomad Foods (NOMD) has shown a solid price increase of 13.9% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has also increased by 1.7% over the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, NOMD is trading at 84.8% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - NOMD holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 1988, showcasing the effectiveness of this ranking system [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like NOMD that have the fundamental strength to maintain their recent uptrend [3]. - In addition to NOMD, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8].

Core Viewpoint - Healthy cash flow is essential for a company's existence, development, and success, providing the strength and flexibility needed for investment decisions and growth [1][2][3] Cash Flow Importance - Even profitable companies can fail if their cash flow is irregular, highlighting the importance of cash flow in assessing a company's resiliency [2][4] - 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 reduces liquidity and flexibility [4][5] Growth and Management Efficiency - A company must not only have positive cash flow but also increasing cash flow to indicate management's efficiency and reduced dependency on external financing [5][6] Screening Parameters for Investment - 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 [6] - 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 [7] Qualified Stocks - Griffon Corporation (GFF) operates through subsidiaries providing consumer and professional products, with a revised fiscal 2025 earnings estimate [8] - Nomad Foods (NOMD) focuses on frozen foods in Europe, with a 4.0% improvement in the earnings estimate for 2025 [9] - DXP Enterprises (DXPE) offers innovative pumping solutions, with a 22.5% upward revision in current-year earnings [10] - Limbach Holdings (LMB) provides building systems, with a 9.9% increase in the 2025 earnings estimate [10]

Group 1: Nomad Foods Limited - Nomad Foods Limited manufactures and distributes frozen foods primarily in the United Kingdom, Italy, Germany, Sweden, France, and Norway [1] - The company has a Zacks Rank 1 (Strong Buy) and has seen a 6.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Nomad Foods has a price-to-earnings ratio (P/E) of 9.36 compared to 21.15 for the S&P, and possesses a Value Score of A [2] Group 2: Yara International ASA - Yara International ASA is the world's leading supplier of mineral fertilizers, particularly strong in nitrogen-based fertilizers [2] - The company carries a Zacks Rank 1 and has experienced a 12% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Yara International has a price-to-earnings ratio (P/E) of 10.90 compared to 21.15 for the S&P, and also possesses a Value Score of A [3] Group 3: Kaiser Aluminum - Kaiser Aluminum is a leading producer of semi-fabricated specialty aluminum products, serving customers in aerospace, high-strength general engineering, and custom automotive and industrial applications [4] - The company holds a Zacks Rank 1 and has seen a 13% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Kaiser Aluminum has a price-to-earnings ratio (P/E) of 17.43 compared to 21.15 for the S&P, and possesses a Value Score of A [5]