For income-focused investors, a 10% dividend yield can be very attractive, but such high yields often signal significant underlying risk.AGNC stock is moving. See the chart and price action here. The Dividend TrapA yield becomes a “trap” when the high percentage is caused by a collapsing stock price rather than a growing business.Read Next: Top 10 Most Shorted Stocks: Lucid, MARA, Hims and More Payout Ratio: If a company pays out more than 100% of its earnings, it is cannibalizing its own capital to maintai ...

Core Insights - The article emphasizes the importance of free cash flow (FCF) as a critical metric for assessing a company's financial health, beyond traditional metrics like revenue and net profit [1][5]. Definition and Importance of FCF - Free cash flow is defined as the cash generated by a company after covering its operating expenses and capital expenditures, calculated using the formula: FCF = Operating Cash Flow – Capital Expenditure [3]. - FCF is a more reliable indicator of a company's financial health compared to earnings, as it reflects actual cash available for dividends, share buybacks, debt repayment, and business expansion [4][5]. Implications of Strong FCF - A high FCF indicates financial stability, the ability to sustain dividends, and flexibility to adapt to market changes, as seen in companies like Apple and Microsoft [6][7]. - Strong FCF is often associated with a company's capability to continuously generate profits for shareholders [7]. Implications of Weak or Negative FCF - Low or negative FCF can signal potential issues, such as excessive reinvestment needs or rising capital expenditures that may lead to debt problems [8]. - High-growth companies like Amazon and Tesla may report lower or negative FCF temporarily due to prioritizing expansion, necessitating investor discernment between strategic reinvestment and structural weaknesses [9]. Utilizing FCF in Stock Analysis - Investors should examine FCF trends over several years and consider the FCF margin to assess how effectively a business converts sales into cash [10]. - Focusing on the price-to-FCF ratio rather than earnings provides a more reliable measure of a company's market value relative to its available capital, making it a valuable tool for value investors [10]. Conclusion - Understanding FCF helps investors avoid pitfalls such as yield traps and overleveraged companies, emphasizing the importance of cash flow as a clear measure of a company's strength [11].

Palo Alto Networks (PANW) reported strong Q3 free cash flow on Nov. 19, 2025. In addition, its FCF margin rose on a trailing 12-month (TTM) basis. As a result, PANW could be worth much more, but the stock is well off its highs. That makes it a strong buy for value investors here. PANW is at $189.76 in midday trading on Monday, Dec. 22. That's significantly below a recent peak of $221.28. Recently, it has moved up from a trough of More News from Barchart PANW stock - last 6 months - Barchart - Dec. 22, 2 ...

Out-of-the-money (OTM) Alphabet, Inc. (GOOGL) put options can give a 1.77% to short-sellers over the next month. Moreover, GOOGL stock has +32% upside based on an FCF-based target. Buying in-the-money calls is another play. GOOGL closed at $309.29 on Friday, Dec. 12. It's slightly below a recent peak of $323.44 on Nov. 25. But it could be worth as much as $408.27 over the next year, as I recently wrote. More News from Barchart GOOGL stock - last 6 months - Barchart - Friday, Dec. 12, 2025 Today's arti ...

FCF's Influence on Growth The start of the webinar highlighted a historical account on the dominance of growth and value, which tends to come in cycles. Attendees were asked how they allocated to both factors, which resulted in a relatively balanced outcome — 23% towards growth and 15% to value in today's market. "I congratulate our audience on having a healthy growth allocation because that's been beneficial over time,†Mack said upon seeing the results, mentioning that the resilience of growth over time ca ...

Core Viewpoint - The lawsuit against StubHub Holdings, Inc. alleges that the company's IPO documents were misleading by failing to disclose significant adverse trends affecting its Free Cash Flow, which dropped to negative $4.6 million, representing a 143% decline [1] Group 1: Allegations and Financial Impact - The complaint claims that StubHub's Registration Statement and Prospectus did not disclose known trends that were negatively impacting the company's Free Cash Flow [1] - The Free Cash Flow for Q3 2025 was reported as negative $4.6 million, marking a 143% decline from the previous year [1] - Following the earnings news, StubHub's stock fell over 20%, trading as low as 56% below the IPO price of $23.50 [1] Group 2: Legal Issues and Next Steps - The lawsuit focuses on whether the omission of adverse changes in vendor payment timing violated the Securities Act of 1933 [1] - Investors who acquired shares traceable to the IPO and suffered losses are encouraged to contact Hagens Berman for potential compensation [1] - The deadline for investors to move the Court for appointment as lead plaintiff is January 23, 2026 [1]

Core Viewpoint - The U.S. Federal Reserve has cut interest rates by 25 basis points, which may benefit small-cap investors, prompting a recommendation to consider the VictoryShares Small Cap Free Cash Flow ETF (SFLO) for broader exposure beyond the Russell 2000 Index [1]. Group 1: Investment Opportunity - SFLO provides exposure to high free cash flow (FCF) yielding small-cap companies, which can help investors identify true value within the small-cap sector [2]. - The ETF targets companies with attractive growth prospects that can sustain cash flow operations after capital expenditures [5]. - SFLO's methodology focuses on expected FCF, combining trailing and forward-looking cash flow projections, which may enhance investment decisions [5]. Group 2: Sector Exposure - SFLO's rules-based approach may favor sectors that could benefit from further rate cuts, such as energy and consumer discretionary, with significant tilts towards these sectors compared to the Russell 2000 Value Index [6]. - As of September 30, SFLO has a 22.98% allocation to the energy sector and 16.57% to the health care sector, compared to 6.88% and 9.28% in the Russell 2000 Value Index, respectively [6]. Group 3: Index Methodology - The Victory U.S. Small Cap Free Cash Flow Index selects high-quality companies based on profitability screens and strong FCF yield, rebalancing and reconstituting quarterly [10]. - The index calculates FCF yield by dividing expected free cash flow by enterprise value, providing a comprehensive measure of a company's value [10].

Core Insights - The S&P 500 has reached multiple record highs, leading to investor concerns about whether valuations have peaked and if it is the right time to invest new capital [1] - Victory Capital emphasizes the importance of free cash flow (FCF) as a metric to identify high-quality businesses in elevated-valuation markets [1][2] Free Cash Flow ETFs - Victory Capital has launched a suite of ETFs focused on FCF, including the flagship VictoryShares Free Cash Flow ETF (VFLO), which tracks the Victory U.S. Large Cap Free Cash Flow Index [2] - The VFLO Index targets high-quality, large-cap companies with attractive valuations and solid growth prospects [2][12] Valuation Risks - Current market conditions present valuation risks, with stock prices showing a disconnect from fundamental metrics [3] - Investors are encouraged to mitigate valuation risks by investing in stocks with high free cash flow [3] Growth Factor and FCF - Research indicates that combining growth with FCF can enhance investment effectiveness [4] - The VictoryShares Free Cash Flow Growth ETF (GFLW) provides exposure to U.S. companies with high FCF profitability and growth potential [3][4] International Opportunities - With the dollar's weakness and other macroeconomic factors, investors are increasingly looking at international equities [5] - Victory Capital has introduced the VictoryShares International Free Cash Flow ETF (IFLO) and the VictoryShares International Free Cash Flow Growth ETF (GRIN) to expand access to high-quality, high FCF companies globally [5][6] Diversification Strategy - The suite of FCF ETFs allows investors to build a diversified portfolio, including small-cap exposure through the VictoryShares Small Cap Free Cash Flow ETF (SFLO) [6] - Research supports the appeal of FCF across various regions and asset classes, promoting a diversified investment approach based on FCF [7]

Core Insights - Palo Alto Networks (PANW) stock is currently undervalued, trading at $185.13, which is 17% below its price target of $212 per share, despite strong financial performance in fiscal Q1 2026 [1][3] Financial Performance - For fiscal Q1 2026, PANW reported a revenue increase of 15.67% to $2.474 billion and an adjusted free cash flow (FCF) rise of 16.85% to $1.713 billion [3] - The trailing 12-month (TTM) adjusted FCF margin reached a new high of 39.3%, surpassing the previous quarter's margin of 38% [4][5] - The company anticipates maintaining an adjusted FCF margin between 38% and 39% for the fiscal year, indicating strong recurring revenue capabilities [6] Revenue and FCF Projections - Analysts project PANW's revenue for the fiscal year ending July 31 to be $10.53 billion, with an expected increase to $11.93 billion for the following fiscal year [7] - Based on these projections, the next 12 months (NTM) revenue is estimated at $10.88 billion, with potential adjusted FCF reaching $4.3 billion if the margin is assumed at 39.5% [7]

Core Insights - The article discusses the investment strategy of Michael Wiggins De Oliveira, who focuses on buying undervalued companies during pivotal moments in their business narratives, particularly in the tech and energy sectors [1] - Michael manages a concentrated portfolio of approximately 15 to 20 stocks, with an average holding period of 18 months, aiming for significant profitability over the next year [1] - The investment group led by Michael, Deep Value Returns, offers insights through its portfolio, timely stock updates, weekly webinars, and community support for investors [1] Company and Industry Summary - Michael Wiggins De Oliveira is recognized as an inflection investor, emphasizing the importance of timing in investment decisions, especially in the context of the Great Energy Transition, which includes uranium [1] - The investment approach is characterized by a focus on value stocks, leveraging over 10 years of experience in analyzing companies within the tech and energy sectors [1] - The community aspect of Deep Value Returns fosters engagement among both new and experienced investors, providing a platform for shared insights and advice [1]