Zacks.com featured highlights Tyson Foods, General Motors, Fresenius Medical Care and Deluxe

For Immediate ReleaseChicago, IL – December 18, 2024 – Stocks in this week’s article are Tyson Foods, Inc. TSN, General Motors Co. GM, Fresenius Medical Care AG FMS and Deluxe Corp. DLX.4 Value Stocks to Buy as Wall Street Awaits Fed DecisionU.S. stock markets displayed mixed reactions on Monday as investors awaited the Federal Reserve's upcoming decision on interest rates, a critical factor expected to shape the course of the market in the New Year. The S&P 500 edged up 0.4%, closing at 6,074.08, while the Nasdaq Composite rose 1.2% to a record 20,173.89. Conversely, the Dow Jones Industrial Average dipped 0.3%, ending at 43,717.48.The Federal Reserve is likely to announce another rate cut this week, continuing its accommodative monetary stance. However, market participants expect the central bank to signal a slower pace of reductions moving forward, a potential pivot that could impact investor strategies. In this environment, value stocks stand out as a compelling investment option. Trading below their intrinsic value, these stocks offer a margin of safety during market fluctuations.When evaluating value stocks, one of the most effective valuation metrics is the Price to Cash Flow (P/CF) ratio. Companies like Tyson Foods, Inc., General Motors Co., Fresenius Medical Care AG and Deluxe Corp. boast a low P/CF ratio. The P/CF ratio 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.Price to Cash Flow Reflects Financial HealthValue investing is considered one of the best practices when it comes to picking stocks. It is essentially about selecting stocks that are fundamentally sound but have been beaten down by some external factors. Such stocks are poised to bounce back as and when investors recognize the inherent value of companies. Certainly, the value investment strategy best suits investors with a long-term horizon.There are different valuation metrics to determine a stock’s inherent strength. Still, a random selection of a ratio cannot serve your purpose if you want a realistic assessment of a company’s financial position. For this, the Price to Cash Flow (or P/CF) ratio is one of the key metrics.Price-to-Cash-Flow 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. One of the important factors 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. However, cash flow is reliable. Net cash flow unveils how much money a company is actually generating and how effectively management is deploying the same.Positive cash flow indicates an increase in a company’s liquid assets. It gives the company the means to settle debt, meet its expenses, reinvest in its business, endure downturns and finally pay back its shareholders. Negative cash flow implies a decline in the company’s liquidity, which in turn lowers its flexibility to support these moves.What’s the Best Value Investing Strategy?An investment decision based solely on the P/CF metric may not yield the desired results. To identify stocks that are trading at a discount, you should expand your search criteria and also consider 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 chance of falling into a value trap.Here are the parameters for selecting true-value stocks:Here are four of the 10 value stocks that qualified the screening:Tyson Foods, one of the world’s largest food companies and a recognized leader in protein, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 57%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Tyson Foods’ current financial year sales and earnings per share (EPS) suggests growth of 2% and 13.2%, respectively, from the year-ago period. TSN has a Value Score of A. Shares of TSN have risen 15.5% in the past year.General Motors, which designs, builds, and sells cars, trucks, crossovers, and automobile parts globally, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 17.5%, on average.The Zacks Consensus Estimate for General Motors’ current financial year sales and EPS suggests growth of 4.8% and 34.8%, respectively, from the year-ago period. General Motors has a Value Score of A. Shares of GM have rallied 47.4% in the past year.See the Zacks Earnings Calendar to stay ahead of market-making news.Fresenius Medical Care, the world's leading provider of products and services for individuals with renal diseases, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 19%, on average.The Zacks Consensus Estimate for Fresenius Medical’s current financial year EPS suggests growth of 11.5% from the year-ago period. FMS has a Value Score of A. Shares of FMS have advanced 15.3% in the past year.Deluxe Corporation, with more than 100 years of expertise, provides innovative payment and data solutions that support businesses at every stage, processing more than $2 trillion annually and serving millions of clients worldwide. The stock currently carries a Zacks Rank #2.Deluxe has a trailing four-quarter earnings surprise of 18.4%, on average. DLX has a Value Score of A. Shares of Deluxe have jumped 21.9% in the past year.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 Zacks.com at: https://www.zacks.com/stock/news/2384684/4-value-stocks-to-buy-as-wall-street-awaits-feds-rate-decisionZacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Contact: Jim GiaquintoCompany: Zacks.comPhone: 312-265-9268Email: pr@zacks.comVisit: https://www.zacks.com/Zacks.com 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. www.zacks.com/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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. 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