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    -200.24 (-0.60%) featured highlights Select Medical, EnerSys, O-I Glass and PagSeguro

For Immediate Release

Chicago, IL – September 14, 2023 – Stocks in this week’s article are Select Medical Holdings Corp. SEM, EnerSys ENS, O-I Glass, Inc. OI and PagSeguro Digital Ltd. PAGS.

Pick These 4 Low P/CF Stocks for a Balanced Portfolio

As we navigate the second half of 2023, the stock market presents a surprising picture of resilience and momentum. Inflation, which has long been a concern for investors and consumers alike, is showing signs of abating. Economic growth has not only defied initial fears but has also exceeded expectations. The banking sector, having weathered a regional crisis that sent shockwaves through the financial world, is now showing renewed confidence.

The Federal Reserve has played a pivotal role in steering the economy, with a strategic focus on stabilizing prices. In recent months, the central bank has taken measures to address inflationary pressure by raising the benchmark interest rate. While a section of experts still believes that the Fed may continue to raise rates to bring inflation back to 2%, other looming concerns include a potential government shutdown in October, a geopolitical tussle with China and rising oil prices.

In such a scenario, it may be prudent to revisit your investment strategy. We believe investment in stocks made on diligent value analysis is usually considered one of the best practices. In value investing, investors pick stocks that are cheap but fundamentally sound. There are a number of ratios to identify value stocks but none alone can conclusively determine their inherent potential. Each ratio helps an investor understand a particular aspect of the company’s business.

One such ratio, Price to Cash Flow (or P/CF) can work wonders in stock picking if used prudently. This metric evaluates the market price of a stock relative to the amount of cash flow that the company is generating on a per share basis — the lower the number, the better. Select Medical Holdings Corp., EnerSys, O-I Glass, Inc. and PagSeguro Digital Ltd. boast a low P/CF ratio.

Why P/CF Ratio?

You must be wondering why we are considering this when the most widely used valuation metric is Price/Earnings (or P/E). Well, an important factor that makes P/CF a highly dependable metric is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, truly diagnosing a company’s financial health.

Analysts caution that a company’s earnings are subject to accounting estimates and management manipulation. Then again, cash flow is quite reliable. Net cash flow unveils how much money a company generates and how effectively management is deploying the same.

A positive cash flow indicates an increase in the company’s liquid assets. This gives the company the means to settle debt, meet its expenses, reinvest in the business, endure downturns and finally undertake shareholder-friendly moves. Negative cash flow implies a decline in the company’s liquidity, which, in turn, lowers its flexibility to support these endeavors.

However, an investment decision solely based on the P/CF metric may not fetch the desired results. To identify stocks that are trading at a discount, you should expand your search criteria and take into account the price-to-book ratio, price-to-earnings ratio and price-to-sales ratio. Adding a favorable Zacks Rank and a Value Score of A or B to your search criteria should lead to even better results as these eliminate the chances of falling into a value trap.

Here are four of the seven stocks that qualified the screening:

Select Medical Holdings, one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics and occupational health centers, carries a Zacks Rank #2. The company has an expected EPS growth rate of 23.4% for three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Select Medical Holdings’ current financial year sales and EPS suggests growth of 4.2% and 56.9%, respectively, from the year-ago period. SEM has a Value Score of A. Shares of SEM have risen 4.5% in the past six months.

EnerSys, the global leader in stored energy solutions for industrial applications, carries a Zacks Rank #2 and has an expected EPS growth rate of 14% for three to five years. The company has a trailing four-quarter earnings surprise of 10.3%, on average.

The Zacks Consensus Estimate for EnerSys’ current financial year sales and EPS suggests growth of 3.8% and 45.7%, respectively, from the year-ago period. ENS has a Value Score of A. Shares of ENS have advanced 17.5% in the past six months.

O-I Glass, one of the leading producers of glass bottles and jars around the globe, carries a Zacks Rank #2. O-I Glass has a Value Score of A and an expected EPS growth rate of 15% for three to five years.

O-I Glass has a trailing four-quarter earnings surprise of 20.5%, on average. Shares of OI have declined 13.4% in the past six months.

PagSeguro Digital, which provides financial technology solutions and services, carries a Zacks Rank #2. It has an expected EPS growth rate of 9.9% for three to five years. The company has a trailing four-quarter earnings surprise of 9.3%, on average.

The Zacks Consensus Estimate for PagSeguro Digital’s current financial year sales and EPS suggests growth of 3.6% and 13%, respectively, from the year-ago period. PagSeguro Digital has a Value Score of A. Shares of PAGS have risen 7% in the past six months.

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 at:

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at:

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Contact: Jim Giaquinto


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Visit: 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. 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  for information about the performance numbers displayed in this press release.

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O-I Glass, Inc. (OI) : Free Stock Analysis Report

Select Medical Holdings Corporation (SEM) : Free Stock Analysis Report

Enersys (ENS) : Free Stock Analysis Report

PagSeguro Digital Ltd. (PAGS) : Free Stock Analysis Report

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