To increase your chances of discovering value opportunities, one method is to screen the market for stocks with lower trailing 12-month price-to-free-cash-flow ratios than that of the S&P 500, which stands at around 12.61 as of the time of writing.
Therefore, investors could be interested in the following stocks, since they meet the above criteria and are recommended by sell-side analysts on Wall Street.
Occidental Petroleum Corp
The first stock investors could be interested in is Occidental Petroleum Corp. (OXY, Financial), a Houston, Texas-based oil and gas explorer and producer.
Occidental Petroleum Corp.’s price-to-free-cash-flow ratio is about 6.24, ranking better than 60.11% of 559 companies that operate in the oil and gas industry.
The free cash flow per share for the trailing 12 months ended March 31 stood at $10.26.
Following a 142.82% increase over the past year, the stock closed at $64.08 per share on Friday for a market capitalization of $60.06 billion and a 52-week range of $21.62 to $64.98.
Currently, Occidental Petroleum Corp. pays a quarterly dividend of 13 cents per common share with the next payment scheduled for July 15.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of approximately $71.04 per share.
Marathon Oil Corp
The second stock investors could be interested in is Marathon Oil Corp. (MRO, Financial), a Houston-based oil and gas exploration and production company.
Marathon Oil Corp.’s price-to-free-cash-flow ratio is 8.25, ranking better than 58.86% of the 599 companies that operate in the oil and gas industry.
The company's free cash flow per share for the trailing 12 months ended March 31 was $3.27.
Following a 120.41% increase that occurred over the past year, the stock was trading at $27 per share at close on Friday for a market capitalization of $19.11 billion and a 52-week range of $10.41 to $29.
Currently, Marathon Oil Corp. pays a quarterly dividend of 8 cents per common share with the next payment scheduled for June 10.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $33.10 per share.
AGNC Investment Corp
The third stock investors could be interested in is AGNC Investment Corp. (AGNC, Financial), a Bethesda, Maryland-based real estate investment trust company.
AGNC Investment Corp.’s price-to-free-cash-flow ratio is about 4.40, ranking better than 93.25% of 489 companies that operate in the REIT industry.
The company's free cash flow per share for the trailing 12 months ended March 31 was $2.82.
The stock is down 31.96% over the past year to close Friday at $12.39 per share for a market cap of $6.48 billion and a 52-week range of $10.86 to $18.84.
Currently, AGNC Investment Corp. pays a quarterly dividend of 12 cents per common share with the next payment scheduled for June 9.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $12.48 per share.
