This week’s large-cap screener covers a diverse range of industries, including energy, finance, metal mining, telecommunications, healthcare, semiconductors, consumer retail, and aerospace & defense. The market reflects a mix of undervalued opportunities, particularly in energy, finance, and industrials.
Industry Analysis
1. Integrated Oil & Gas Exploration and Production
- Top Performers: Equinor (EQNR) +0.50%, Petroleo Brasileiro (PBR) +0.48%
- Metrics:
- Best Acquirer’s Multiple: EQNR (2.4), followed by PBR (3.5)
- High FCF Yields: EQNR (12.06%), PBR (45.77%)
- Strong Expected Returns: EQNR (48.04%), PBR (58.25%)
- Outlook: Strong dividends (EQNR: 13.04%, PBR: 40.03%) make these attractive income plays despite volatility in energy markets.
2. Metal Ore Mining and Metal Products
- Top Performers: ArcelorMittal (MT) -4.80%, Vale (VALE) -1.38%
- Metrics:
- Best Acquirer’s Multiple: MT (1.0), making it one of the cheapest stocks on the list.
- High Expected Returns: VALE (24.44%), MT (41.35%)
- Decent Dividend Yields: MT (1.64%), VALE (9.69%)
- Outlook: Commodity prices drive these stocks; they remain strong industrial plays.
3. Specialty Finance
- Top Performer: Synchrony Financial (SYF) +3.12%
- Metrics:
- Acquirer’s Multiple: 1.9, making it undervalued.
- High Free Cash Flow Yield: 47.31%
- Moderate Expected Return: 14.90%
- Outlook: Strong balance sheet and cash flow make it a value play in finance.
4. Telecommunications (General & Wireless/Wireline)
- Top Performers: America Movil (AMX), Telkom Indonesia (TLK)
- Metrics:
- High Dividend Yields: TLK (7.13%)
- Moderate Acquirer’s Multiple: TLK (5.6), BCE (6.9)
- Outlook: Stable cash flows and dividends
5. Healthcare & Biopharmaceuticals
- Top Performers: Molina Healthcare (MOH) +0.59%, United Therapeutics (UTHR) +0.04%
- Metrics:
- Best Acquirer’s Multiple: MOH (6.8)
- Expected Returns: MOH (17.63%), UTHR (23.33%)
- Very Low Debt-to-Equity: MOH (-9.58%), indicating a strong balance sheet.
- Outlook: Long-term growth from an aging population and tech advancements.
6. Semiconductor Industry
- Top Performers: ON Semiconductor (ON) +1.79%, United Microelectronics (UMC) -0.63%
- Metrics:
- Best Acquirer’s Multiple: ON (6.3)
- Low Debt-to-Equity: ON (2.96%), UMC (-1.18%)
- Outlook: AI and automotive demand boost growth.
7. Consumer & Retail
- Top Performers: Best Buy (BBY) +2.16%, Ulta Beauty (ULTA) +1.30%
- Metrics:
- Best Acquirer’s Multiple: BBY (5.4)
- Expected Returns: ULTA (32.28%), BBY (16.42%)
- Dividend Yield: BBY (4.13%)
- Outlook: Digital transformation and personal care demand drive growth.
8. Aerospace & Defense
- Top Performer: Leidos Holdings (LDOS) +1.23%
- Metrics:
- Acquirer’s Multiple: LDOS (7.1)
- Expected Return: 20.09%
- Outlook: Strong defense spending supports sector stability.
Key Observations
Strong Value Plays
- ArcelorMittal (MT) has the lowest Acquirer’s Multiple (1.0), making it the best value stock on the list.
- Synchrony Financial (SYF) and Petroleo Brasileiro (PBR) offer the best Free Cash Flow Yields (47.31% and 45.77%).
Dividend Stocks
- High yield stocks:
- PBR (40.03%)
- Equinor (13.04%)
- BCE (12.56%)
Growth Potential
- ON Semiconductor (ON) and Ulta Beauty (ULTA) are well-positioned for high-growth industries.
Conclusion
This week’s large-cap screener reveals several strong value plays, dividend stocks, and growth opportunities.
- For value investors: ArcelorMittal (MT) and Synchrony Financial (SYF) offer the best Acquirer’s Multiple and FCF yields.
- For income investors: Petroleo Brasileiro (PBR) and Equinor (EQNR) provide top dividend yields.
- For growth investors: ON Semiconductor (ON) and Ulta Beauty (ULTA) stand out.
For all the latest news and podcasts, join our free newsletter here.
Don’t forget to check out our FREE Large Cap 1000 – Stock Screener, here at The Acquirer’s Multiple:
