4 Stocks With Increasing Cash Flows to Bet This Earnings Season

Core Viewpoint - The current earnings season emphasizes the importance of cash flow over profits, as cash flow reflects a company's true financial health and ability to sustain operations during market volatility [1][2]. Group 1: Importance of Cash Flow - Cash flow is crucial for a company's flexibility in decision-making, investment opportunities, and overall growth [2]. - Positive cash flow indicates an increase in liquid assets, enabling a company to meet obligations, reinvest, and return wealth to shareholders [4]. - A company must not only have positive cash flow but also increasing cash flow to ensure future growth and reduce reliance on external financing [5]. Group 2: Screening Parameters for Stocks - 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 [6]. - 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 [7]. Group 3: Selected Stocks - **Suzano S.A. (SUZ)**: A major producer of eucalyptus pulp and paper, with a Zacks Consensus Estimate for 2025 earnings implying a year-over-year growth of 395.3$2.30 per share and a VGM Score of A [10]. - Mission Produce, Inc. (AVO): Specializes in avocados, with a fiscal 2025 earnings estimate improved by 44.8% and a VGM Score of A [11]. - Euroseas Ltd. (ESEA): Operates in the shipping market, with a current-year earnings estimate increased by 9.4% and a VGM Score of B [12].