Image Source: Unsplash

As part of a new series here at The Acquirer’s Multiple, we provide a comprehensive analysis of this week’s FREE U.S. Large-Cap Stock Screener — including an overview, industry/sector analysis and performance, and our key observations.

Market Overview

This week’s screener includes a broad mix of large-cap stocks spanning energy, finance, telecommunications, healthcare, industrials, and consumer sectors. Energy and oil producers once again dominate the value spectrum, buoyed by strong free cash flow and dividend yields. Meanwhile, financials and healthcare appear with modest expectations but offer steady fundamentals. Though macro uncertainty continues to loom, several industries show resilience backed by solid earnings and reasonable valuations.

Industry Analysis

1. Integrated Oil & Gas Exploration and Production

• Top Performers: Equinor (EQNR) +1.97%, Petroleo Brasileiro (PBR) +0.68%
• Metrics: EQNR and PBR showcase powerful value metrics with Acquirer’s Multiples of 2.3 and 3.8 respectively. PBR leads on FCF yield (44.08%) and expected return (55.20%), while EQNR is not far behind (11.18% FCF, 43.19% E(r)).
• Outlook: Strong dividends (PBR: 41.12%, EQNR: 11.83%) and robust operating income continue to make these names attractive to income-focused investors.

2. Specialty Finance

• Top Performer: Synchrony Financial (SYF) +4.02%
• Metrics: With the lowest Acquirer’s Multiple (1.7), SYF stands out for its exceptional FCF yield (43.64%) and decent expected return (16.97%).
• Outlook: One of the top value opportunities this week, offering a solid mix of yield and return.

3. Metal Ore Mining

• Top Performer: Vale (VALE) -0.63%
• Metrics: Despite a price dip, VALE holds a srong E(r) of 21.4% and good operating income ($10.7B). Dividend yield is 8.37%.
• Outlook: A stable pick for long-term commodity exposure.

4. Consumer Vehicles & Parts

• Top Performer: Stellantis (STLA) +5.97%
• Metrics: High expected return (29.82%) and dividend yield 16.68%.
• Outlook: High dividend (16.68%) is appealing.

Key Observations

• Strong Value Plays: SYF and PBR combine high FCF yields and expected returns, indicating compelling value.
• Income Highlights: PBR (41.12%) and EQNR (11.83%) top the dividend list, followed by Stellantis (16.68%) and BCE.
• Energy Momentum: The oil & gas sector dominates top-value metrics and remains the most represented among high-ranking large-caps.

Conclusion

This week’s large-cap screen offers several high-conviction value and income plays, particularly within the energy and specialty finance sectors. Stocks like Petroleo Brasileiro and Synchrony Financial stand out for their free cash flow strength.

More By This Author:

10 Worst Performing Large-Caps Last 12 Months
Westlake Chemical Partners LP: Is This Deeply Undervalued Stock A Hidden Gem?
Microsoft Corporation: Our Calculation of Intrinsic Value