Daily Archives: May 11, 2017

Value style is considered one of the best practices when it comes to picking stocks. There are different valuation metrics to determine a stocks inherent strength but a random selection of a ratio cannot serve your purpose if you want a realistic assessment of a companys financial position. For this, we would suggest Price to Cash Flow (or P/CF) ratio as one of the key metrics.

This metric evaluates the market price of a stock relative to the amount of cash flow that the company is generating on a per-share basis the lower the number, the better. One of the important factors that makes P/CF a highly dependable metric is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, truly diagnosing the financial health of a company.

Analysts caution that a companys earnings are subject to accounting estimates and management manipulation. On the other hand, cash flow is reliable. It is net cash flow that unveils how much money a company is actually generating and how effectively management is deploying the same.

Positive cash flow indicates an increase in the companys liquid assets. It gives the company the means to settle debt, shell out for its expenses, reinvest in its business, endure downturns and finally pay back its shareholders. On the other hand, a negative cash flow implies a decline in the companys liquidity, which in turn lowers its flexibility to support these moves.

However, an investment decision solely based on the P/CF metric may not fetch the desired results. To identify stocks that are trading at a discount, you should expand your search criteria and take into account price-to-book ratio, price-to-earnings ratio and price-to-sales ratio. Adding a favorable Zacks Rank and a Value Score of A or B to your search criteria should lead to even better results as these eliminate the chance of falling into a value trap.

The Bargain Hunting Strategy

Here are the parameters for selecting true value stocks:

P/CF less than or equal to X-Industry Median.

Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.

Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.

P/E using (F1) less than or equal to X-Industry Median: This parameter shortlists stocks that are trading at a discount or are equal to its peers.

P/B less than or equal to X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.

P/S less than or equal to X-Industry Median: The P/S ratio determines how a stock price compares to the companys sales the lower the ratio the more attractive the stock is.

PEG less than 1: The ratio is used to determine a stock's value by taking the company's earnings growth into account. PEG ratio gives a more complete picture than P/E ratio. A value of less than 1 indicates that the stock is undervalued and that investors need to pay less for a stock that has robust earnings growth prospect.

Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.

Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B when combined with Zacks Rank #1 or 2 offer the best upside potential.

Here are five of the 11 stocks that qualified the screening:

Citizens Financial Group, Inc. (CFG - Free Report) operates as the bank holding company for Citizens Bank, N.A. and Citizens Bank of Pennsylvania which provide retail and commercial banking products and services. The company delivered an average positive earnings surprise of 9.1% over the trailing four quarters and has 19.1% expected EPS growth rate for 35 years. It flaunts a Zacks Rank #1. You can see the complete list of todays Zacks #1 Rank stocks here.

ArcelorMittal (MT - Free Report) , which operates as an integrated steel and mining company globally, has an expected EPS growth rate of 11.5% for 35 years. Currently, the stock carries a Zacks Rank #1.

Fiat Chrysler Automobiles N.V. (FCAU - Free Report) , which designs, engineers, manufactures, distributes, and sells vehicles, components and production systems, carries a Zacks Rank #2 and has an expected EPS growth rate of 22.4% for 35 years. The company delivered an average positive earnings surprise of 22.5% over the trailing four quarters.

Big Lots, Inc. (BIG - Free Report) , which operates as a non-traditional discount retailer, has an expected EPS growth rate of 13.5% for 35 years. The company, which holds a Zacks Rank #2, delivered an average positive earnings surprise of 83.1% over the trailing four quarters.

Office Depot, Inc. (ODP - Free Report) , which supplies office products and services in North America, also carries a Zacks Rank #2. The company has an expected EPS growth rate of 20.8% for 35 years.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks portfolios and strategies are available at: https://www.zacks.com/performance.

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5 Low P/CF Stocks to Add More Value to Your Investment - Zacks.com

NY Stock News

The Technicals For CF Industries Holdings, Inc. (CF) Have Been Dissected (Brutally) NY Stock News CF Industries Holdings, Inc. (CF) has presented a rich pool of technical data in recent sessions. These are the trends we've been tracking and how we feel they should be played in the current environment. Some people say the past is not an accurate ... and more »

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The Technicals For CF Industries Holdings, Inc. (CF) Have Been Dissected (Brutally) - NY Stock News

The World Cup may not be until 2018, but there will be no shortage of competitive soccer matches this summer.

The New York Cosmos announced on Tuesday that the team will be traveling to Canada on July 22 to play six-time La Liga winner Valencia CF, one of the most revered clubs in Europe.

The game will be the first time in history that the two storied franchisees have gone head-to-head.

The preseason friendly is part of the Spanish clubs North American preseason tour.

The highly anticipated bout will take place in Regina, Canada. It will be the citys first-ever international soccer exhibition match and will be played at the new state-of-the-art Mosaic Stadium.

"It's a great privilege to play in the first soccer match in beautiful new Mosaic Stadium, said Cosmos Chief Operating Officer Erik Stover. It's a world-class venue and we're looking forward to the challenge of playing a world-class club like Valencia CF.

In addition to winning the Spanish league six times, Los Che have won the Copa del Rey seven times, the UEFA Europa League three times and the UEFA Super Cup twice.

Valencia CF is one of only two teams, besides Barcelona and Real Madrid, to have won the Spanish league in the last 15 years. They triumphed in the 20012002 and 20032004 seasons.

Valencias current squad is manned by Portuguese international and UEFA Euro 2016 winner Nani, the Brazilian expert penalty stopper Diego Alves and former Manchester City and France National Team defender Eliaquim Mangala.

It will be the first time that Valencia CF has played in Canada as the team attempts to spread its brand and become a globally recognized club like its more well-known opponents Barcelona and Real Madrid

This first visit of the team to Canada, with a growing interest for soccer and against a team with the history of the New York Cosmos, is an important event for the presence of Valencia in a strategic market like North America, Director General of Valencia Mateo Alemany said in Spanish.

The Cosmos are one of the most storied franchises in America, having been led by Edson Arantes do Nascimento, better known as Pel, who is undeniably regarded as the greatest athlete to ever play the Beautiful Game.

His outstanding ball control, superb tactical ability and unbelievable runs through entire teams were admired in both Brazil and the U.S. on the pro level, where his gifted feet graced the pitches of Yankee Stadium and Giants Stadium.

The eight-time North America Soccer League champions also boasted the likes of Franz Beckenbauer, Girogio Chinaglia, Carlos Alberto, Marcos Senna and more recently, Raul.

Raul, who played for the Cosmos last season and who was the first-ever player to score in two Champions League finals, scored against Valencia CF in the 2000 Champions League finals.

Following the announcement of the match, the Brooklyn Eagle spoke with Javi Marquez and Ayoze, two Spaniards on the Cosmos who previously played in La Liga during their careers.

They articulated the significance of playing a historic club like Valencia CF.

We look forward to this historic match," Javi Marquez told the Eagle. "Valencia CF has a vast soccer history, both in Spain and in Europe, and it will definitely be a good test for us.

Playing against a European-renowned team is always positive, added Ayoze. The Cosmos have a tradition of playing international exhibition matches and we feel honored to be part of the inaugural soccer match of this beautiful stadium.

Across the Pond

Two months prior to the momentous match in Canada, the Cosmos will fly to Saudi Arabia for an international friendly against Al-Hilal FC.

The match will take place in Riyadh, Saudi Arabia at Al-Hilal FCs home ground, Prince Faisal bin Fahd Stadium.

With the visit to Saudi Arabia, it will be the 48th nation that the Cosmos have visited, emphasizing the clubs established reputation as a global soccer ambassador.

The international friendly will be the Cosmos 128th contest played on foreign soil and the 187th international match, including those played in America.

Our club has had the good fortune to represent the United States during many memorable international matches, said Cosmos head coach Giovanni Savarese. It is our hope that this historic visit to Saudi Arabia will unite people through the beautiful game of soccer.

Shortly after the U.S. restored diplomatic relations with Cuba, the Cosmos were the first American sports team to visit Havana in 16 years when they took on the Cuban National Team in June 2015. The Cosmos, led by Raul, triumphed 4-1.

More:

Summer of Soccer: Cosmos to play legendary La Liga side Valencia ... - Brooklyn Daily Eagle

Revenue Approximations Analysis: CF Industries Holdings, Inc. (CF), ANTERO RESOURCES CORP (AR) StockNewsJournal CF Industries Holdings, Inc. (CF) have shown a high EPS growth of -17.80% in the last 5 years and has earnings decline of -140.10% yoy. Analysts have a mean recommendation of 2.70 on this stock (A rating of less than 2 means buy, hold within the 3 ... and more »

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Revenue Approximations Analysis: CF Industries Holdings, Inc. (CF), ANTERO RESOURCES CORP (AR) - StockNewsJournal