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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (76650)	12/7/2024 6:32:05 PM
From: E_K_S	Read Replies (1) \| Respond to of 78527

I see DCF analysis just another tool in the tool box. That site uses EPS as the major input in their cash flow analysis but you really want to look at FCF. I found that when a company has had negative FCF for several quarters and turns positive is a good entry point. There maybe several reasons for this but the focus is/should be if this is the beginning of growing FCF over next quarters/years. Some reasons is company made significant capital investments and now seeing growing FCF, part of a cyclical turn, more subscribers in a subscription based service, higher service based revenues, expanding margins... etc. UNFI is one in this mode and may/could see growing FCF now. Last 4 quarters FCF negative but less each quarter. Earnings come out next week December 10, 2024. According to Zacks Investment Research, based on 4 analysts' forecasts, the consensus EPS forecast for the quarter is $0.01. The reported EPS for the same quarter last year was $-0.04. Zacks estimates positive EPS. However the stock has already run +166% from 5/2024. -------------------------------------------------------- So maybe one of the best way to catch these turnaround candidates is use your 52wk lows list/scan. UNFI did hit a 4 year low 4/22/2024. Then watch their FCF every quarter to see if it is getting less negative and on track to turn positive.