Core Insights - The focus on healthy cash flow is becoming increasingly important for investors as they prepare for 2026, emphasizing that consistent cash generation is crucial for sustaining operations, funding growth, and maintaining financial flexibility [1][3] Group 1: Importance of Cash Flow - Profits alone do not guarantee long-term stability; companies with inconsistent cash flows may face challenges even if they are profitable [3] - Positive cash flow indicates an increase in liquid assets, allowing companies to meet obligations, reinvest, and weather downturns, while negative cash flow reduces liquidity and flexibility [5] - Increasing cash flow is essential for future growth, reflecting management's efficiency and reducing reliance on external financing [6] Group 2: Stock Picks Based on Cash Flow - Stocks such as Astronics Corporation (ATRO), Great Lakes Dredge & Dock Corporation (GLDD), Natural Gas Services Group, Inc. (NGS), and Strattec Security Corporation (STRT) are highlighted as strong picks due to improving cash flow trends [2][8] - ATRO is expanding into aircraft lighting integration, with earnings estimates for 2025 and 2026 rising by 10.3% and 8.4%, respectively [9][10] - GLDD's earnings expectations for 2025 and 2026 have increased by 6.9%, supported by strong demand for U.S. dredging operations [10] - NGS has seen earnings estimates improve by 9.5% and 14.1% for 2025 and 2026, respectively, due to its natural gas compression equipment and services [11] - STRT's fiscal 2026 earnings estimate has increased by 23.3%, currently standing at $5.24 per share [12] Group 3: Screening Parameters for Stock Selection - 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 [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]

Group 1: RenaissanceRe (RNR) - RenaissanceRe provides property-catastrophe reinsurance globally on an excess of loss basis [1] - The company has a Zacks Rank 1 (Strong Buy) and a Growth Score of A [2] - The Zacks Consensus Estimate for its current year earnings has increased by 12.9% over the last 60 days [1] Group 2: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US [2] - The company also holds a Zacks Rank 1 and a Growth Score of A [3] - The Zacks Consensus Estimate for its current year earnings has increased by 6.9% over the last 60 days [2] Group 3: Phibro Animal Health (PAHC) - Phibro Animal Health is a leading global diversified animal health and mineral nutrition company [3] - The company carries a Zacks Rank 1 and has a Growth Score of B [4] - The Zacks Consensus Estimate for its current year earnings has increased by 9.1% over the last 60 days [3]

Key Takeaways GLDD grew revenue 12.8% to $631.8M on strong execution, utilization and higher-margin coastal work.Orion Group revenue rose about 7% to $619M as marine and concrete activity remained steady.ORN increased bonding capacity by $400M in October 2025 to pursue larger, complex projects.The U.S. marine construction and dredging market is gaining support from ongoing infrastructure spending, coastal protection needs and port expansion activity. Within this landscape, Great Lakes Dredge & Dock Corporat ...

Core Insights - Net profit is a crucial indicator of a company's financial health, reflecting its ability to convert sales into profits [1] - A low profit margin indicates higher risks, while companies like Great Lakes Dredge & Dock Corporation (GLDD), Strattec Security Corporation (STRT), Natural Gas Services Group, Inc. (NGS), and Standard Motor Products, Inc. (SMP) demonstrate solid net profit margins [2] - A higher net profit margin compared to peers provides a competitive edge and attracts investors and skilled employees [4] Financial Metrics - Net Profit Margin is calculated as Net Profit/Sales * 100, serving as a reference for assessing operational strength and cost control [3] - A healthy net profit margin and solid EPS growth are essential for maximizing returns [7] Screening Criteria - Companies with a net margin of at least 0% indicate solid profitability [8] - Positive percentage change in EPS indicates earnings growth [8] - A Zacks Rank of 1 or 2 suggests strong performance potential [10] Selected Companies - GLDD is the largest provider of dredging services in the U.S., with a Zacks Rank of 1 and a VGM Score of A; its 2026 earnings estimate has increased by $0.10 to $1.09 per share [10][11] - STRT designs and manufactures automotive locks, holding a Zacks Rank of 1 and a VGM Score of A; its 2026 earnings estimate has risen by 23.3% to $5.24 per share [12][13] - NGS produces natural gas compressors, also with a Zacks Rank of 1 and a VGM Score of B; its 2026 earnings estimate has increased by 14.1% to $2.11 per share [13][14] - SMP manufactures automotive replacement parts, currently holding a Zacks Rank of 2 and a VGM Score of A; its 2026 earnings estimate has risen by $0.04 to $4.31 per share [15][16]

Key Takeaways GLDD stock rose 12.3% in the past month, beating its heavy construction industry, sector and the S&P 500.Great Lakes Dredge & Dock's maintenance backlog up 53.9% YoY, aided by disciplined bidding and utilization.Adjusted EBITDA margin up 310 bps to 20.2% YTD, as the modernized fleet and execution lifted profitability.Great Lakes Dredge & Dock Corporation’s (GLDD) stock performance has moved up 12.3% in the past month, outperforming the Zacks Building Products - Heavy Construction industry, the ...

Group 1: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and storm-damaged coastline restoration [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a Zacks Consensus Estimate for its current year earnings increase by 8.1% over the last 60 days [1] - Great Lakes Dredge & Dock has a PEG ratio of 1.9, which is lower than the industry average of 3.1, and possesses a Growth Score of A [2] Group 2: Primoris Services (PRIM) - Primoris Services is one of the largest specialty contractors and infrastructure companies in the United States [2] - The company also carries a Zacks Rank of 1 and has experienced a Zacks Consensus Estimate for its current year earnings increase of 9.1% over the last 60 days [2] - Primoris Services has a PEG ratio of 1.11 compared to the industry average of 3.35, and it holds a Growth Score of A [3] Group 3: Commercial Metals (CMC) - Commercial Metals manufactures, recycles, and markets steel and metal products, along with related materials and services [3] - The company has a Zacks Rank of 1 and has seen a significant increase in the Zacks Consensus Estimate for its current year earnings by 24.4% over the last 60 days [3] - Commercial Metals has a PEG ratio of 0.44, which is considerably lower than the industry average of 1.31, and it possesses a Growth Score of B [4]

Core Insights - Three stocks with strong growth characteristics and buy ranks are highlighted for investors: Micron Technology, Great Lakes Dredge & Dock, and Alarm.com [1][2][3] Company Summaries - **Micron Technology (MU)**: - Leading provider of semiconductor memory solutions - Zacks Rank 1 (Strong Buy) - Current year earnings estimate increased by 7% over the last 60 days - PEG ratio of 0.48 compared to the industry average of 1.42 - Growth Score of A [1][2] - **Great Lakes Dredge & Dock (GLDD)**: - Largest provider of dredging services in the US - Zacks Rank 1 (Strong Buy) - Current year earnings estimate increased by 7.8% over the last 60 days - PEG ratio of 0.98 compared to the industry average of 2.99 - Growth Score of A [2][3] - **Alarm.com (ALRM)**: - Offers interactive security solutions for home and business owners - Zacks Rank 1 (Strong Buy) - Current year earnings estimate increased by 5.5% over the last 60 days - PEG ratio of 1.64 compared to the industry average of 3.17 - Growth Score of B [3]

Core Insights - Investors prioritize businesses that consistently generate profits, with net profit margin being a crucial metric for assessing profitability and operational effectiveness [1][2] Summary by Sections Net Profit Margin - Net profit margin is calculated as Net Profit divided by Sales multiplied by 100, indicating a company's efficiency in converting sales into actual profits [2] - A higher net profit margin reflects better operational strength and cost management, which is essential for rewarding stakeholders and attracting talent [2] Pros and Cons of Net Profit Margin - Net profit margin provides clarity on a company's business model, including pricing policy and cost structure, making it a preferred metric for investors [3] - Limitations include significant variations across industries and complications arising from different accounting treatments, particularly for non-cash expenses [3][4] Winning Strategy - A healthy net profit margin and solid earnings per share (EPS) growth are key elements sought in a business model [5] Screening Parameters - Criteria for screening include a net margin of at least 0%, positive percentage change in EPS, and high broker ratings indicating bullish sentiment [6][7] Company Highlights - Great Lakes Dredge & Dock Corporation (GLDD) is the largest provider of dredging services in the U.S., with a Zacks Rank of 1 and a VGM Score of A [9] - Natural Gas Services Group, Inc. (NGS) manufactures natural gas compressors, also holding a Zacks Rank of 1 and a VGM Score of A [10] - Strattec Security Corporation (STRT) designs and manufactures locks for automotive manufacturers, with a significant upward revision in earnings estimates [11] - Northrim BanCorp, Inc. (NRIM) is a full-service commercial bank, currently holding a Zacks Rank of 1 and a VGM Score of A [12] Earnings Estimates - GLDD's 2025 earnings estimate has increased by $0.08 to $1.10 per share, with an average surprise of 65.5% over the last four quarters [10] - NGS's 2025 earnings estimate has risen by $0.14 to $1.62 per share, with an average surprise of 28.9% [11] - STRT's fiscal 2026 earnings estimate has moved up by 23.3% to $5.24 per share, with an average surprise of 83.1% [12] - NRIM's 2025 earnings estimate has been revised upward by $0.15 to $2.50 per share, with an average surprise of approximately 19% [13]

Company Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States, with a history of significant international projects [3] - The company is expanding its core business into the offshore energy industry [3] - Great Lakes operates the largest and most diverse fleet in the U.S. dredging industry, consisting of approximately 200 specialized vessels [3] - The company has a disciplined training program for engineers to ensure experienced-based performance [3] - Great Lakes has an Incident-and Injury-Free® (IIF®) safety management program integrated into its culture, emphasizing employee safety [3] Upcoming Event - Scott Kornblau, Senior Vice President and Chief Financial Officer, will present at NobleCon21 on December 3 at 12:00 PM Eastern Standard Time [1] - A high-definition video webcast of the presentation will be available the following day on the company's website and other platforms [2]

Core Insights - Great Lakes Dredge & Dock Corporation has received a credit rating upgrade from S&P Global Ratings, moving from "B-" to "B" with a stable outlook [1][2] Financial Performance - The upgrade is attributed to improved revenues, earnings, and expanding margins, alongside decreasing capital expenditures, which are expected to support healthy free cash flow generation in the coming years [2] - S&P anticipates continued revenue growth and margin expansion through 2026, with increasingly positive free cash flow as the new build program concludes [2] Company Overview - Great Lakes is the largest provider of dredging services in the U.S. and has a long history of significant international projects [3] - The company is expanding its core business into the offshore energy sector and employs experienced civil, ocean, and mechanical engineers [3] - With over 135 years of history, Great Lakes has a perfect track record of completing marine projects and operates the largest and most diverse fleet in the U.S. dredging industry, consisting of approximately 200 specialized vessels [3] - The company has a disciplined training program for engineers and emphasizes a safety management culture through its Incident-and Injury-Free® (IIF®) program [3]