Investors looking for opportunities to invest in U.S.-listed stocks may want to consider companies whose free cash flow has increased significantly in recent years, as these companies should have the flexibility to continue supporting the development of projects and returning cash to shareholders.
The following four stocks meet the above criteria. Additionally, Wall Street sell-side analysts have issued positive recommendation ratings for these stocks, meaning their share prices are expected to rise in the coming months.
Roku Inc.
The first company that investors may want to consider is Roku Inc. (ROKU, Financial), a Los Gatos, California-based TV streaming platform operator.
The company has seen its free cash flow per share increase by 12.80% over the past year.
Analysts estimate the company will be growing its earnings per share by 43% per year over the next five years.
On Wall Street as of July, the stock has a median recommendation rating of overweight. The average target price is $137.42 per share.
The share price ($85.17 as of July 28) has dropped 80.11% over the past year for a market capitalization of $11.58 billion and a 52-week range of $72.63 to $449.98.
Stellantis N.V.
The second company to consider is Stellantis N.V. (STLA, Financial), a Netherlands-based manufacturer of automobiles and light commercial vehicles that sell worldwide under several brand names, including Abarth, Alfa Romeo, Chrysler, Citroen, DS, Dodge and Fiat.
The company has seen its free cash flow per share increase by 12.90% per year over the past five years and by 24.30% over the last 12 months.
Analysts estimate the company's earnings per share will increase by 20.11% every year over the next five years.
On Wall Street as of July, the stock has a median recommendation rating of overweight. The average target price is $21.78 per share.
The share price ($14 on July 28) is down 26.97% year-over-year, yielding a market cap of $43.86 billion. The 52-week range is $11.37 to $21.99.
Enphase Energy Inc.
The third company that investors may want to consider is Enphase Energy Inc. (ENPH, Financial), a Fremont, California-based manufacturer of solar microinverters for the solar photovoltaic industry.
The company has seen its free cash flow per share increase by 44.10% over the last 12 months.
Analysts estimate the company's earnings per share will increase by 64.30% this year, by 19.70% in 2023 and by 32.27% per year over the next five years.
On Wall Street as of July, the stock has a median recommendation rating of overweight. The average target price is $262.37 per share.
The share price ($274.18 as of July 28) has climbed 44.61% over the past year, determining a market capitalization of $37.14 billion and a 52-week range of $113.40 to $285.
American International Group Inc.
The fourth company to consider is American International Group Inc. (AIG, Financial), a New York-based provider of insurance products to U.S. and international private and commercial customers.
The company has grown its free cash flow per share by a whopping 153.60% over the trailing 12 months.
Analysts estimate the company's earnings per share will increase by 27.50% next year and by 11.51% per year over the next five years.
On Wall Street as of July, the stock has a median recommendation rating of overweight. The average target price is $62.57 per share.
The share price ($50.49 on July 28) is up 6.63% year-over-year, yielding a market cap of $40 billion. The 52-week range is $46.44 to $65.73.
