Morgan Stanley says these cash-rich companies are set up to 'weather a prolonged storm'

  • 📰 CNBC
  • ⏱ Reading Time:
  • 22 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 72%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

Companies with strong free cash flow may be better prepared to stay afloat during economic uncertainty, according to Morgan Stanley.

Investors looking to shore up their portfolios in this volatile market should look into buying companies with strong free cash flows, according to Morgan Stanley. Free cash flow theoretically measures the amount of cash a business will have left after paying operating expenditures. Morgan Stanley found that in the last 12 months, operating cash flows have increased nearly 5% on the year to $2.2 trillion, and capital expenditure spending increased by more than 18% to $786.1 billion.

"Cash rich companies with high free cash flow yields should also have better downside protection, while providing longer-term upside potential if management is able to deploy cash effectively." Morgan Stanley also made a list of companies with strong free cash flows ranging from 10% to nearly 30% as ideas for investors, though the bank notes that individual assessment is warranted before buying any of the names.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 12. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Stocks will continue falling even after Fed pivots, warns Morgan Stanley strategist who predicted bear marketMorgan Stanley Chief Equity Strategist Mike Wilson on Monday is doubling down on his call for stocks to continue falling into the end of 2022. Well, not today!
Källa: MarketWatch - 🏆 3. / 97 Läs mer »