Zacks.com featured highlights Griffon, HNI, ADMA Biologics and First Bank

Zacks.com featured highlights Griffon, HNI, ADMA Biologics and First Bank

Zacks Equity Research
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For Immediate Release

Chicago, IL – March 5, 2024 – Stocks in this week’s article are Griffon Corp. GFF, HNI Corp. HNI, ADMA Biologics, Inc. ADMA and First Bank FRBA.

4 Stocks with Increasing Cash Flows to Enrich Your Portfolio

If achieving profit is a company’s goal, then having a healthy cash flow is essential to its existence, development and success. This is because cash offers strength, vitality and flexibility to make investment decisions as well as the fuel to run the growth engine.

Investors flock to companies that earn profits but even a profitable business can succumb to failure if its cash flow is irregular and eventually files for bankruptcy. But a company’s resiliency can be fairly judged when its efficacy in generating cash flows is assessed. This is because cash not only shields a company from market mayhem but also indicates that profits are being channeled in the right direction.

In this regard, stocks like Griffon Corp., HNI Corp., ADMA Biologics, Inc. and First Bank are worth buying.

In addition, amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns in recent years resulting from geopolitical tensions or the health crisis, analyzing a company’s cash-generating efficiency has indeed become more relevant.

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.

Here are our four picks out of the six stocks that qualified the screening:

Griffon Corp, a diversified management and holding company, operates through wholly-owned subsidiaries. It provides consumer and professional, as well as home and building products.

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