3 Stocks to Buy with Rising Cash Flows Ahead of Q2 Earnings

Balfour Beatty Plc, Soho House & Co Inc. and Euroseas Ltd. are stocks with rising cash flows worth buying ahead of Q2 earnings. They have a healthy cash position, indicating their financial health and flexibility to make decisions and chase investments. Analyzing a company's cash-generating efficiency is crucial in the current context of economic uncertainties and market disruptions. These stocks have a positive cash flow and increasing earnings per share, indicating management's efficiency in regulating cash movements and less dependency on outside financing.

As the Q2 earnings season approaches, investors are focused on crunching profit numbers and evaluating surprises. However, looking beyond profits to assess a company’s cash position can offer a more comprehensive view of its financial health. Three stocks—Balfour Beatty Plc (BLFBY), Soho House & Co Inc. (SHCO), and Euroseas Ltd. (ESEA)—are notable for their rising cash flows, indicating their strong financial position and flexibility to navigate market uncertainties [1].

Balfour Beatty Plc (BLFBY)

Balfour Beatty is an infrastructure services company operating in Construction Services, Support Services, and Infrastructure Investments. The Zacks Consensus Estimate for 2025 earnings per share has improved by 2.6% over the past month, reflecting positive market sentiment [1]. The company’s VGM Score of A further underscores its strong financial health and growth potential.

Soho House & Co Inc. (SHCO)

Soho House & Co provides a membership platform that fosters connections among a diverse and global group of members. The Zacks Consensus Estimate for 2025 revenues is pegged at $1.28 billion, suggesting a 6.3% increase from the year-ago figure [1]. SHCO’s VGM Score of B indicates a solid financial performance and growth prospects.

Euroseas Ltd. (ESEA)

Euroseas is an owner and operator of container carrier vessels, providing seaborne transportation for containerized cargoes. The Zacks Consensus Estimate for Euroseas’ current-year earnings has moved 3.8% north in the past month, demonstrating positive earnings momentum [1]. The company currently has a VGM Score of B, highlighting its strong financial position.

Screening Parameters

To identify stocks with rising cash flows, a screening process was implemented using the following parameters:

- Cash flow in the latest reported quarter at least equal to or greater than the 5-year average cash flow per common share.
- Zacks Rank 1 (Strong Buy).
- Average Broker Rating 1.
- Current Price greater than or equal to $5.
- VGM Score of B or better.

These parameters ensure that the selected stocks are not only financially healthy but also have strong growth prospects and favorable broker ratings.

Conclusion

Investors should consider Balfour Beatty Plc, Soho House & Co Inc., and Euroseas Ltd. as stocks with rising cash flows ahead of Q2 earnings. Their healthy cash positions and increasing earnings per share indicate strong financial health and management efficiency. In an uncertain economic environment, focusing on cash-generating efficiency is crucial for long-term investment success.

References

[1] https://www.nasdaq.com/articles/buy-these-3-stocks-rising-cash-flows-ahead-q2-earnings
[2] https://www.nasdaq.com/articles/zackscom-featured-highlights-balfour-beatty-soho-house-and-euroseas