Solid Cash-Flow Growth Makes These 4 Stocks Worth Buying Now

Picking profit-making stocks for investments might be a popular choice but not flawless. This is because even a profit-making company can have a deficiency of cash flow and become bankrupt while meeting its obligations. However, one can effectively judge a company’s resilience by looking at its efficiency in generating cash flows.

In this regard, stocks like BrightSpring Health Services, Inc. BTSG, Aura Minerals Inc. AUGO, DXP Enterprises DXPE and Mistras Group, Inc. MG emerge as compelling picks, supported by improving cash flow trends.

Cash, which is indeed the lifeblood of any business, gives a company the flexibility to make investment decisions and the fuel to run its growth engine. Moreover, cash shields a company from market turmoil and indicates that profits are being channelized in the right direction, indicating a company’s true financial health. Also, uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns resulting from geopolitical tensions have all the more reestablished the relevance of analyzing a company’s cash-generating efficiency.

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 eight stocks that qualified the screening:

BrightSpring Health Services provides complementary home and community-based pharmacy and health solutions. The company continues to benefit from strong demand for home-based care, a broad service platform and a focus on expanding integrated healthcare offerings.

The Zacks Consensus Estimate for BrightSpring’s 2026 earnings has been revised upward by 17.5% in the past 30 days. BTSG has a VGM Score of A.

Aura Minerals is a company focused on the development and operation of gold and base metal projects principally in the Americas. AUGO operating assets include the Minosa gold mine in Honduras, the Almas, Apoena, Borborema and MSG gold mines in Brazil, as well as the Aranzazu copper, gold, and silver mine in Mexico.

The Zacks Consensus Estimate for Aura Minerals’ 2026 earnings has moved northward to $11.86 from $7.98 per share over the past 30 days. AUGO has a VGM Score of A.

DXP Enterprises provides innovative pumping solutions, supply-chain services and maintenance, repair, operating and production services. This product and service distributor serves industrial customers throughout the United States, Canada, Mexico and the U.A.E.

The consensus estimate for DXP Enterprises’ current-year earnings has been revised 17.2% upward over the past 30 days. DXPE has a VGM Score of B.

Mistras Group is a global provider of technology-enabled, non-destructive testing solutions used to evaluate the structural integrity of critical energy, industrial and public infrastructure.

The Zacks Consensus Estimate for Mistras Group’s 2026 earnings has been revised upward to $1.05 per share from 99 cents in the past 30 days. MG has a VGM Score of A.

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DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report

Mistras Group Inc (MG): Free Stock Analysis Report

BrightSpring Health Services, Inc. (BTSG): Free Stock Analysis Report

Aura Minerals Inc. (AUGO): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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