4 Undervalued Stocks With Solid Cash Flow Growth
Kapitall submits:Here we present four stocks undervalued relative to earnings growth, with PEG < 1. These stocks have also seen higher growth in quarterly operating cash flow year-over-year relative to growth in net income. Net income is comprised of both accruals (i.e. management estimates) and cash flows. Studies have shown that earnings with higher cash flow proportions have a higher persistence. Therefore, in this article, our measure of cash flows outpacing net income implies that cash flow is becoming a larger proportion of earnings, improving earnings quality.
Do you think these companies have attractive earnings? Use this list as a starting-off point for your own analysis. List sorted by difference between growth in net income and operating cash flow. 1. Gentiva Health Services Inc. (GTIV): Home Health Care Industry. Market cap of $745.23M. PEG at 0.8. Net Income grew by 30.46% ($13.5M vs. $10.3M y/y), while Operating Cash Flow grew byComplete Story »