7 Large-Cap Stocks Trading at a Discount Right Now
One of the financial metrics I use to find large-cap stocks trading at a discount is their free cash flow yield. Free cash flow (or FCF) is the remaining cash flow from operations after subtracting a company’s capital expenditures. Uses for FCF include dividends, share repurchases, debt repayment, acquisitions, and investing in the business. If a company’s FCF yield is 8% or higher, there is a strong possibility that investors are undervaluing its shares. The inverse of FCF yield is price-to-free-cash-flow (P|FCF). With this in mind, I screened SP 500 stocks with a market capitalization of $10 billion or greater to find large-cap stocks trading at a discount. In turn, the screen provided 51 possibilities . However, 24 were financial stocks, which don’t tend to be good candidates for P|FCF and FCF yield stock screens. Nonetheless, I found seven large-cap stocks trading at a discount to buy now — with each one coming from a different sector. Ticker Company Price LYB LyondellBasell $87.17 LYV Live Nation Entertainment $89.78 EXPE Expedia $97.73 FANG Diamondback Energy $118.28 AXP American Express $149.83 MOH Molina Healthcare $308.68 HPQ HP Inc. $31.99 Large-Cap Stocks: LyondellBasell (LYB) Source: Flagmania | Shutterstock.com LyondellBasell (NYSE: LYB ) is a producer of chemicals such as ethylene, propylene, propylene oxide, methanol, acetic acid and many others.
7 Large-Cap Stocks Trading at a Discount Right Now
One of the financial metrics I use to find large-cap stocks trading at a discount is their free cash flow yield. Free cash flow (or FCF) is the remaining cash flow from operations after subtracting a company’s capital expenditures. Uses for FCF include dividends, share repurchases, debt repayment, acquisitions, and investing in the business. If a company’s FCF yield is 8% or higher, there is a strong possibility that investors are undervaluing its shares. The inverse of FCF yield is price-to-free-cash-flow (P|FCF). With this in mind, I screened SP 500 stocks with a market capitalization of $10 billion or greater to find large-cap stocks trading at a discount. In turn, the screen provided 51 possibilities . However, 24 were financial stocks, which don’t tend to be good candidates for P|FCF and FCF yield stock screens. Nonetheless, I found seven large-cap stocks trading at a discount to buy now — with each one coming from a different sector. Ticker Company Price LYB LyondellBasell $87.17 LYV Live Nation Entertainment $89.78 EXPE Expedia $97.73 FANG Diamondback Energy $118.28 AXP American Express $149.83 MOH Molina Healthcare $308.68 HPQ HP Inc. $31.99 Large-Cap Stocks: LyondellBasell (LYB) Source: Flagmania | Shutterstock.com LyondellBasell (NYSE: LYB ) is a producer of chemicals such as ethylene, propylene, propylene oxide, methanol, acetic acid and many others.