Chicago, IL – February 21, 2025 – Stocks in this week’s article are EnerSys ENS, Sonoco Products Co. SON, World Kinect Corp. WKC and General Motors Co. GM.
The S&P 500 set another record high on Wednesday, climbing 0.24% to close at 6,144.15, marking its second consecutive all-time high. The Dow Jones Industrial Average advanced 0.16% to settle at 44,627.59, while the Nasdaq Composite inched up 0.07% to 20,056.25, extending its winning streak to five sessions.
Investor optimism persisted despite the ongoing trade uncertainties and the Federal Reserve’s cautious stance on interest rate cuts. Economic data and earnings reports in the coming weeks will play key roles in determining whether this market has further room to run or if volatility will return. But at this juncture, investors might consider balancing their portfolios with value stocks. Typically trading below their intrinsic value, these stocks offer a margin of safety during market fluctuations.
When evaluating value stocks, one of the most effective valuation metrics is the Price to Cash Flow (P/CF) ratio. This metric measures the market price of a stock relative to the cash flow the company generates on a per-share basis. A lower P/CF ratio indicates that the stock is trading at a better value, offering strong cash generation potential relative to its price. Here are four companies — EnerSys, Sonoco Products Co., World Kinect Corp. and General Motors Co.
Questions may arise as to why we are considering the P/CF valuation metric when the most widely used metric is Price/Earnings (or P/E). Well, what makes P/CF stand out is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, reflecting a company's financial health.
Analysts caution that a company’s earnings are subject to accounting estimates and management manipulation. However, cash flow is reliable. It is net cash flow that reveals how much money a company is actually generating and how effectively management is putting the same to use.
A positive cash flow indicates an increase in the company’s liquid assets. This 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. Then again, a negative cash flow implies a decline in the company’s liquidity, which lowers its flexibility to support these moves.
Here are four of the 12 value stocks that qualified the screening:
EnerSys, the global leader in stored energy solutions for industrial applications, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 2.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EnerSys’ current financial year sales and earnings per share (EPS) suggests growth of 1% and 19.8%, respectively, from the year-ago period. ENS has a Value Score of A. Shares of ENS were up 12.4% in the past year.
Sonoco Products, a global leader in high-value sustainable packaging, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for Sonoco Products’ current financial year sales and EPS calls for growth of 35.1% and 48.1%, respectively, from the year-ago period. SON has a Value Score of A. Shares of SON have declined 18% in the past year.
See the Zacks Earnings Calendar to stay ahead of market-making news.
World Kinect, a global energy management company offering fulfillment and related services, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 1.1%, on average.
The Zacks Consensus Estimate for World Kinect’s current financial year EPS implies growth of 6.7%, respectively, from the year-ago period. WKC has a Value Score of A. Shares of WKC have rallied 14.7% in the past year.
General Motors, which designs, builds and sells cars, trucks, crossovers and automobile parts globally, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 15.8%, on average.
The Zacks Consensus Estimate for General Motors’ current financial year EPS suggests growth of 8% from the year-ago period. General Motors has a Value Score of A. Shares of GM have rallied 21.1% in the past year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2418882/focus-on-these-4-low-pcf-stocks-to-maximize-returns-in-2025
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sonoco Products Company (SON) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Enersys (ENS) : Free Stock Analysis Report
World Kinect Corporation (WKC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。