Pick These 4 Low P/CF Stocks to Boost Your Portfolio

Core Viewpoint - Value investing focuses on selecting fundamentally sound stocks that have been undervalued due to external factors, with the potential for recovery as investors recognize their inherent value [1] Valuation Metrics - The Price to Cash Flow (P/CF) ratio is highlighted as a key metric for assessing a company's financial health, with lower values indicating better performance [2] - Cash flow is considered more reliable than earnings, as it reflects the actual money generated by a company and how effectively management utilizes it [2] Cash Flow Implications - Positive cash flow indicates an increase in liquid assets, allowing companies to settle debts, reinvest, and pay shareholders, while negative cash flow reduces liquidity and flexibility [3] Investment Criteria - A comprehensive investment strategy should include multiple metrics such as price-to-book, price-to-earnings, and price-to-sales ratios, along with a favorable Zacks Rank and Value Score to avoid value traps [3][4] Bargain Hunting Strategy - Parameters for selecting true value stocks include: - P/CF less than or equal to industry median - Stock price greater than or equal to $5 - Average 20-day volume greater than 100,000 - P/E, P/B, and P/S ratios less than or equal to industry medians [4] Stock Recommendations - PagSeguro Digital (PAGS) has a Zacks Rank 1, with a trailing four-quarter earnings surprise of 10.1%, and projected sales and EPS growth of 1.8% and 19.3% respectively, with shares up 39.2% in the past year [6] - Adtalem Global Education (ATGE) also holds a Zacks Rank 1, with a trailing earnings surprise of 16.9% and projected sales and EPS growth of 6.4% and 10.2% respectively, shares have increased by 17.4% [7] - KB Home (KBH) carries a Zacks Rank 1, with a trailing earnings surprise of 26.1% and projected sales and EPS growth of 5.6% and 13.9% respectively, shares have gained 61% [7] - General Motors (GM) has a Zacks Rank 2, with a trailing earnings surprise of 20% and projected sales and EPS growth of 1.8% and 18.2% respectively, shares have risen 22.6% [8]