Latest News

A key cash flow metric makes these stocks a smart buy, Ned Davis Research says


Monster Beverage Corp. drinks.

David Paul Morris | Bloomberg | Getty Images

The best strategy for picking stocks over the past three decades may be at the peak of its powers right now, according to Ned Davis Research.

Brian Sanborn, the firm’s senior vice president for wealth management, said in a note that the ratio of a company’s free cash flow to its enterprise value has been the best factor for picking stocks since at least 1988.

Investing in the best stocks by this metric has given a positive return more than 64% of the time over the last 33 years, slightly more than the S&P 500, according to the firm.

How Adam Selipsky could make Amazon’s cloud business even bigger

Previous article

These stocks could soon see a boom due to ‘significant pent-up demand,’ analysts say

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News