This Week’s Large-Cap Value Screener
This week’s screener highlights a broad mix of sectors, ranging from Integrated Oil and Gas Exploration and Production, Computer Hardware and Storage, Telecommunications Services, Specialty Finance and Energy Utilities. With market volatility still elevated, we’re seeing some standout opportunities in companies with low Acquirer’s Multiples, robust free cash flow, and strong expected returns.
Industry Analysis
1. Consumer Vehicles and Parts
- Top Performer: Stellantis (STLA) +1.62%
- Best Acquirer’s Multiple: 5.6
- Dividend Yield: 15.51%
- Outlook: Stellantis continues to impress with shareholder returns. Despite a negative FCF Yield (-23.52%), its aggressive dividend makes it a compelling income play.
2. Computer Hardware and Storage
- Top Performer: Western Digital (WDC) +2.18%
- Acquirer’s Multiple: 6.9
- Expected Return: 11.07%
- Outlook: With memory and storage demand rising on AI tailwinds, WDC stands as a value play in tech hardware.
3. Construction Materials
- Top Performer: Owens Corning (OC) +2.16%
- Acquirer’s Multiple: 8.5
- FCF Yield: 9.90%
- Expected Return: 20.67%
- Outlook: A solid industrial stock with good cash flow and return metrics. Infrastructure tailwinds may support further gains.
4. Agriculture
- Top Performer: Pilgrim’s Pride (PPC) -1.71%
- Acquirer’s Multiple: 8.3
- FCF Yield: 11.55%
- Outlook: Volatility in protein pricing pressures the stock, but strong free cash flow and valuation keep it on value screens.
5. Communications Equipment
- Top Performer: Nokia (NOK) +0.19%
- Acquirer’s Multiple: 10.6
- Dividend Yield: 2.70%
- Outlook: Nokia provides steady dividends and global telecom exposure.
6. Specialty Finance
- Top Performer: Synchrony Financial (SYF) +3.38%
- Acquirer’s Multiple: 1.9 – The lowest on the list, signaling deep value
- Free Cash Flow Yield: 46.07% – Among the highest in the screener
- Expected Return: 14.77%
- Dividend Yield: 2.20%
Synchrony Financial stands out as a top value play in the financial sector.
Conclusion
This week’s screener offers several compelling value opportunities:
- For Value Investors: Synchrony Financial (SYF), Stellantis (STLA), and Western Digital (WDC) are attractive on valuation metrics.
- For Income Seekers: Stellantis stands out with a generous 15.51% dividend.
- For Growth-Oriented Investors: Owens Corning (OC) combines solid fundamentals with 20.67% expected returns.
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