Who published this market news?

Zacks published this market news item, with source attribution at http://www.zacks.com/.

Buy 4 Stocks With Rising Cash Flows to Enrich Your Portfolio

We are already into the second-quarter reporting cycle, and stocks with top-line growth and increasing profit numbers might be popular choices. But choosing stocks based on a company’s efficiency in generating cash flows can be far more rewarding.In this regard, stocks like Dycom Industries, Inc. D…

In this regard, stocks like Dycom Industries, Inc. DY, Cimpress plc CMPR, The Marcus Corporation MCS and Flexsteel Industries, Inc. FLXS are worth buying.

This is because even a profit-making company can have a dearth of cash flow and become bankrupt while meeting its obligations if its profits are not channelized in the right direction. But a company can effectively weather any market mayhem if it has a solid cash position, as that lends a company the flexibility to make decisions, the means to invest and the fuel to run its growth engine. It is indeed the key to a company’s existence, development and success, and reveals its true financial health.

Furthermore, analyzing a company’s cash-generating efficiency holds more relevance amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns.

To figure out this efficiency, one needs to consider a company’s net cash flow. While in any business, cash moves in and out, it is net cash flow that explains how much money a company is actually generating.

If a company is experiencing a positive cash flow, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the business, endure downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decline in the company’s liquidity, which, in turn, lowers its flexibility to support these moves.

However, having a positive cash flow merely does not secure a company’s future growth. To ride on the growth curve, a company must have its cash flow increasing because that indicates management’s efficiency in regulating its cash movements and less dependency on outside financing for running its business.

Therefore, keep yourself abreast with the following screen to bet on stocks with rising cash flows.

Screening Parameters:

To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the five-year average cash flow per common share. This implies a positive trend and increasing cash over a period of time.

In addition to this, we chose:

Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.

Average Broker Rating 1: This indicates that brokers are also highly hopeful about the company’s future performance.

Current Price greater than or equal to $5: This sieves out low-priced stocks.

VGM Score of B or better: This score is also of great assistance in selecting stocks. Importantly, this scoring system helps in picking winning stocks in their industry categories.

Here are four out of the seven stocks that qualified the screening:

Dycom Industries is a specialty contracting firm operating in the telecom industry. The company provides diverse services such as engineering, construction, maintenance and installation services for the cable and telephone companies.

The Zacks Consensus Estimate for fiscal 2027 earnings has improved 2.6% over the past 30 days to $16.35. DY currently has a VGM Score of B.

Cimpress plc is an online supplier of high-quality graphic design services and customized printed products to small businesses and consumers. Its product offerings include business cards, brochures and websites, and e-commerce platforms, calendars, address labels, note pads and signage, among others.

The Zacks Consensus Estimate for fiscal 2026 earnings has improved 5.2% over the past 60 days to $3.81. CMPR currently has a VGM Score of A.

The Marcus Corporation engages in the lodging and entertainment industries. It operates through two segments: Movie Theatres, and Hotels and Resorts. The company's movie theatre division owns or manages screens at locations in several states, as well as a family entertainment center. Marcus' lodging division owns or manages hotels and resorts in several states.

The Zacks Consensus Estimate for Marcus Corporation’s 2026 earnings has moved northward by 8.2% to 53 cents per share over the past seven days. MCS has a VGM Score of A.

Flexsteel Industries is engaged in the design, manufacture and sale of a broad line of quality upholstered furniture for residential, commercial and recreational vehicle seating use.

The Zacks Consensus Estimate for Flexsteel Industries’ fiscal 2026 earnings has been revised upward by 2.8% to $4.78 per share in the past 60 days. FLXS has a VGM Score of A.

Why Haven't You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can access their live picks without cost or obligation.See Stocks Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report