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Zacks.com featured highlights include Photronics, DXP, Climb Global and GeoPark
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For Immediate Release

Chicago, IL – January 6, 2025 – Stocks in this week’s article are Photronics, Inc. PLAB, DXP Enterprises, Inc. DXPE, Climb Global Solutions, Inc. CLMB and GeoPark Ltd. GPRK.

Bet on 4 High-Flying Stocks with Increasing Cash Flows

If achieving profit is a company's goal, then having 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 its growth engine.

In this regard, stocks like Photronics, Inc., DXP Enterprises, Inc., Climb Global Solutions, Inc. and GeoPark Ltd. are worth buying.

Investors are naturally drawn to profit-generating companies, but even a profitable business can falter and face bankruptcy if its cash flow is inconsistent. A company's true resilience lies in its ability to generate steady cash flows, as this not only safeguards it against market turmoil but also demonstrates that its profits are being effectively utilized. This perspective is especially pertinent given the current climate of global economic uncertainty, market disruptions and dislocations.

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 the 16 stocks that qualified for the screening:

Photronics is a leading worldwide manufacturer of photomasks. Photomasks are high-precision quartz plates that contain microscopic images of electronic circuits. A key element in the manufacture of semiconductors and flat panel displays, photomasks are used to transfer circuit patterns onto semiconductor wafers and flat panel substrates during the fabrication of integrated circuits, a variety of flat panel displays and, to a lesser extent, other types of electrical and optical components.

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