Zacks.com featured highlights include Atour Lifestyle, Limbach, LSI Industries and Euroseas

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For Immediate Release

Chicago, IL – October 16, 2024 – Stocks in this week’s article are Atour Lifestyle Holdings Ltd. ATAT, Limbach Holdings, Inc. LMB, LSI Industries Inc. LYTS and Euroseas Ltd. ESEA.

Look Beyond Earnings: Bet on 4 Stocks with Rising Cash Flows

Investors can be lured by profits and earnings surprises in the ongoing reporting cycle. However, during this earnings season and beyond, betting on stocks with a healthy cash level can be far more rewarding because cash is the lifeblood of a company's existence, a measure of resiliency and a revelation of its true financial health.

In this regard, stocks like Atour Lifestyle Holdings Ltd., Limbach Holdings, Inc., LSI Industries Inc. and Euroseas Ltd. are worth buying.

Even after reaping profits, a company can face a dearth of cash flow and be bankrupt while meeting its obligations if its profits are not channeled in the right direction. However, a company with adequate cash flows can effectively tide over any market mayhem besides enjoying flexibility in decision-making and chasing potential investments.

Analyzing a company's cash-generating efficiency has indeed become more relevant amid uncertainties in the global economy, market disruptions and dislocations. Therefore, analyzing a company's ability to produce cash is important not only for protecting your money but also for multiplying it.

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 four out of 13 stocks that qualified the screening:

Atour Lifestyle Holdings Limited is a prominent hospitality and lifestyle company in China known for its distinct portfolio of lifestyle hotel brands. As the leading upper midscale hotel chain in the country, Atour is also the first to establish a scenario-based retail business.