Zacks.com Spotlights Perimeter Solutions, Interface, Castle Biosciences, and Great Lakes Dredge & Dock
Investment Focus: The article highlights four stocks—Perimeter Solutions, Interface, Castle Biosciences, and Great Lakes Dredge & Dock—that are recommended for investors seeking companies with increasing cash flows, rather than focusing solely on profit margins.
Importance of Cash Flow: It emphasizes that positive and increasing cash flow is crucial for a company's resilience and growth potential, especially in uncertain economic conditions, as it indicates effective management and less reliance on external financing.
Stock Performance Insights: Each of the featured companies has shown upward revisions in earnings estimates, reflecting analysts' optimism about their future performance, with specific earnings projections provided for each stock.
Research Tools: The article promotes the Research Wizard stock picking and back-testing software as a valuable resource for investors to identify and evaluate stocks based on cash flow and other financial metrics.
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- Complete Exit: On February 2, 2026, AIGH Capital Management LLC reported a full exit from its Lumen Technologies stake, selling 2.55 million shares for an estimated $15.61 million, indicating potential concerns about Lumen's future amidst ongoing transformation challenges.
- Stock Performance: As of February 1, 2026, Lumen's stock was priced at $8.82, reflecting a 78.5% increase over the past year, significantly outperforming the S&P 500 by 64.2 percentage points, suggesting market optimism about its strategic pivot despite underlying debt issues.
- Strategic Business Shift: Following the $5.75 billion sale of its mass market fiber business to AT&T, Lumen aims to reinvest in new infrastructure, although the costly nature of this transformation raises questions about its long-term profitability and market positioning.
- Debt Burden Concerns: With over $17.6 billion in long-term debt reported in Q3 2025, Lumen faces significant financial challenges, and while the divestiture may alleviate some pressure, the company's ongoing transformation could complicate its recovery and stock performance outlook.
- Significant Revenue Growth: Castle Biosciences anticipates total revenue for 2025 to exceed $340 million, surpassing the previously guided range of $327-335 million, reflecting strong performance in its innovative test portfolio and bolstering confidence in future growth.
- Surge in Core Test Reports: Total test reports for core revenue drivers increased by 37% in 2025 compared to 2024, with DecisionDx-Melanoma reports reaching 39,083 and TissueCypher reports at 39,014, indicating a robust recovery in market demand.
- Successful New Test Launch: The limited access launch of AdvanceAD-Tx in November 2025 saw over 50% of 150 clinician offices placing orders within the first five weeks, demonstrating rapid market acceptance and further expanding the company's total addressable market.
- Strong Financial Position: Year-end 2025 cash and cash equivalents are expected to be approximately $300 million, alongside $184 million in marketable investment securities, showcasing a solid financial foundation that provides ample funding for future expansion and innovation.

- FDA Approval: AstraZeneca and its partner Daiichi Sankyo's antibody-drug conjugate Enhertu has received FDA approval for first-line treatment of unresectable or metastatic HER2-positive breast cancer, marking a significant milestone in the U.S. market.
- Clinical Trial Results: The DESTINY-Breast09 study demonstrated that the Enhertu-Perjeta combination achieved a median progression-free survival of 40.7 months, a 51.5% improvement over the 26.9 months seen with the standard taxane chemotherapy, highlighting its superior efficacy.
- Financial Impact: This approval triggers a $150 million milestone payment from AstraZeneca to Daiichi Sankyo, further solidifying their global partnership and providing a new revenue growth avenue for AstraZeneca.
- Market Performance: Over the past year, AstraZeneca's stock has surged by 36.3%, significantly outperforming the industry average growth of 12.1%, reflecting strong market confidence in its newly approved drug and future growth potential.
Novo Nordisk's New Drug Application: Novo Nordisk has submitted an NDA to the FDA for CagriSema, a once-weekly injection aimed at reducing body weight in adults with obesity or overweight, expected to be reviewed in 2026.
Clinical Study Results: CagriSema demonstrated significant weight loss in two phase III studies, with patients achieving an average weight loss of 22.7% and 15.7% compared to placebo, and a favorable safety profile.
Market Challenges: Despite positive clinical results, Novo Nordisk's stock has declined due to pricing pressures and competition from Eli Lilly's obesity and diabetes drugs, which have rapidly gained market share.
Future Developments: Novo Nordisk is developing additional obesity treatments and expanding its semaglutide franchise, while also pursuing partnerships for new obesity and diabetes therapies.
- Employee Incentive Program: On December 15, 2025, Castle Biosciences granted 139,494 restricted stock units (RSUs) to 83 employees, aimed at attracting talent and enhancing employee loyalty, which will ultimately improve overall company performance.
- Grant Details: These RSUs were awarded under the company's 2022 Inducement Plan and will vest over four years, with 25% vesting on the first anniversary and the remainder vesting in three equal installments annually, ensuring continued employee service through each vesting date.
- Compliance Assurance: The grant complies with Nasdaq Listing Rule 5635(c)(4), which not only ensures the company's adherence to regulations in attracting and retaining key talent but also boosts investor confidence in corporate governance practices.
- Company Vision: Castle Biosciences focuses on improving health through innovative testing, dedicated to providing personalized solutions for dermatologic and gastroenterological diseases, aiming to enhance patient management and treatment outcomes through rigorous science and advanced molecular testing.
- Employee Incentive Program: On December 15, 2025, Castle Biosciences granted 139,494 restricted stock units (RSUs) to 83 employees, aimed at attracting talent and enhancing employee loyalty, which is expected to improve overall company performance.
- Grant Details: The RSUs were awarded under the company's 2022 Inducement Plan and will vest over four years, with 25% vesting on the first anniversary and the remainder vesting in three equal installments annually, ensuring continued employee service.
- Compliance Assurance: This grant complies with Nasdaq Listing Rule 5635(c)(4), demonstrating the company's commitment to attracting and retaining key talent while enhancing investor confidence through compliance and transparency.
- Company Vision: Castle Biosciences focuses on improving health through innovative testing, particularly in dermatologic and gastroenterological diseases, and the RSU grants will further drive the company's strategic goals in personalized healthcare solutions.










