Industry Overview
This week’s FREE Large Cap Screener reveals recurring value opportunities across a few dominant sectors:
- Integrated Oil and Gas Exploration and Production continues to lead with 2 companies in the top 5, reinforcing the idea that large-cap energy stocks remain attractively priced relative to their operating income.
- Wireless and Wireline Telecommunications Services is represented by 3 companies in this week’s screen, suggesting that select telecom stocks may be undervalued amid stable cash flows and high dividend yields, despite slower growth and elevated capital spending.
- Metal Ore Mining also makes a notable appearance, reflecting ongoing investor interest in commodity-backed value opportunities.
The common thread remains consistent: cyclical sectors like energy and industrials continue to dominate the value landscape, while select opportunities in financials and materials stand out.
Top 5 Large-Cap Stocks by Lowest Acquirer’s Multiple®
Below are this week’s top five large-cap value picks, ranked by the lowest Acquirer’s Multiple®:
1. Synchrony Financial (SYF)
- Acquirer’s Multiple: 1.8
- Price: $60.05
- Industry: Specialty Finance
- Free Cash Flow Yield: 42.89%
- 5Y Average ROA: 9%
- Dividend Yield: 2.08%
- Enterprise Value: $19.45B
- Operating Income: $10.99B
Synchrony continues to look attractively undervalued with a stellar FCF yield and the lowest AM in the screen. It combines solid profitability and shareholder returns, making it a compelling bet for financial-sector value investors.
2. Equinor ASA (EQNR)
- Acquirer’s Multiple: 2.2
- Price: $23.11
- Industry: Integrated Oil & Gas
- Free Cash Flow Yield: 11.75%
- 5Y Average ROA: 22%
- Dividend Yield: 12.44%
- Enterprise Value: $67.99B
- Operating Income: $30.42B
Equinor pairs a strong energy presence with consistent returns and double-digit yield, ideal for value and income-focused investors navigating a volatile energy landscape.
3. Petrobras (PBR)
- Acquirer’s Multiple: 3.8
- Price: $12.04
- Industry: Integrated Oil & Gas
- Free Cash Flow Yield: 43.64%
- 5Y Average ROA: 14%
- Dividend Yield: 40.71%
- Enterprise Value: $102.08B
- Operating Income: $27.10B
Petrobras boasts the highest yields on this list—both FCF and dividend. While Brazil-specific risks remain, the valuation and income potential are difficult to ignore.
4. Vale SA (VALE)
- Acquirer’s Multiple: 5.2
- Price: $9.83
- Industry: Metal Ore Mining
- Free Cash Flow Yield: 2.72%
- 5Y Average ROA: 13%
- Dividend Yield: 8.25%
- Enterprise Value: $55.35B
- Operating Income: $10.68B
Vale shows solid profitability and a generous yield for a mining stock, but the lower FCF yield may give some value investors pause. It remains a strategic cyclical play.
5. Stellantis NV (STLA)
- Acquirer’s Multiple: 5.3
- Price: $10.67
- Industry: Consumer Vehicles & Parts
- Free Cash Flow Yield: -24.84%
- 5Y Average ROA: 3%
- Dividend Yield: 16.38%
- Enterprise Value: $31.22B
- Operating Income: $5.87B
Stellantis delivers a sky-high dividend, though its negative FCF yield highlights recent pressures in the auto industry. Contrarian investors may see a turnaround opportunity here.
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