Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

If you tend to find yourself analyzing companies’ cash flows, then you may find this article to be a great starting point for your own research on the companies listed below.

To construct this list we looked for stocks with the following characteristics:
- Market cap above $300M
- Growing cash flow, i.e. TTM Free Op. Cash Flow / Revenue greater than 3yr and 5yr averages
- Bullish options sentiment, as a percentage change of the Put/Call ratio over the last two weeks

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.



Considering this data, which of stocks would you be more likely to put your money work with?

1. Team Inc. (TISI):
Business Services Industry. Market cap of $422.50M. TTM FOCF/Revenue at 8.3% vs. a 3-yr average of 4.84% and a 5-yr average of 2.33%. The Put/Call ratio dropped by 90.79%, from 0.76 to 0.07. The stock has performed poorly over the last month, losing 11.29%.

2. Sauer-Danfoss Inc. (SHS):
Diversified Machinery Industry. Market cap of $2.13B. TTM FOCF/Revenue at 14.42% vs. a 3-yr average of 3.31% and a 5-yr average of 2.12%. The Put/Call ratio dropped by 88.28%, from 1.45 to 0.17. This is a risky stock that is significantly more volatile than the overall market (beta = 2.1). After a solid performance over the last year, SHS has pulled back during recent sessions. The stock has performed poorly over the last month, losing 18.68%.

3. Nelnet Inc. (NNI): Credit Services Industry. Market cap of $1.01B. TTM FOCF/Revenue at 37.45% vs. a 3-yr average of 29.04% and a 5-yr average of 20.8%. The Put/Call ratio dropped by 83.33%, from 2.1 to 0.35. The stock has had a couple of great days, gaining 5.24% over the last week.

4. Kindred Healthcare Inc. (KND): Medical Instruments & Supplies Industry. Market cap of $853.73M. TTM FOCF/Revenue at 1.8% vs. a 3-yr average of 1.18% and a 5-yr average of 0.46%. The Put/Call ratio dropped by 83.33%, from 0.6 to 0.1. The stock is a short squeeze candidate, with a short float at 17.25% (equivalent to 7.5 days of average volume). The stock has performed poorly over the last month, losing 12.63%.

5. PriceSmart Inc. (PSMT): Discount, Variety Stores Industry. Market cap of $1.42B. TTM FOCF/Revenue at 1.78% vs. a 3-yr average of 0.65% and a 5-yr average of 0.08%. The Put/Call ratio dropped by 80.65%, from 3.1 to 0.6. The stock is a short squeeze candidate, with a short float at 14.39% (equivalent to 11.19 days of average volume). The stock has had a couple of great days, gaining 9.2% over the last week.

6. Cerner Corporation (CERN): Healthcare Information Services Industry. Market cap of $9.87B. TTM FOCF/Revenue at 15.34% vs. a 3-yr average of 9.23% and a 5-yr average of 6.81%. The Put/Call ratio dropped by 74.72%, from 2.69 to 0.68. The stock is a short squeeze candidate, with a short float at 11.72% (equivalent to 13.37 days of average volume). The stock has gained 47.65% over the last year.

7. Sonic Corp. (SONC): Restaurants Industry. Market cap of $658.79M. TTM FOCF/Revenue at 12.08% vs. a 3-yr average of 6.67% and a 5-yr average of 5.31%. The Put/Call ratio dropped by 73.2%, from 0.97 to 0.26. The stock is a short squeeze candidate, with a short float at 9.48% (equivalent to 6.18 days of average volume). The stock has had a couple of great days, gaining 5.65% over the last week.

8. Applied Micro Circuits Corp. (AMCC): Semiconductor Industry. Market cap of $531.59M. TTM FOCF/Revenue at 8.56% vs. a 3-yr average of 5.76% and a 5-yr average of 2.57%. The Put/Call ratio dropped by 66.67%, from 0.3 to 0.1. The stock is a short squeeze candidate, with a short float at 7.99% (equivalent to 5.85 days of average volume). It's been a rough couple of days for the stock, losing 7.29% over the last week.

9. National Grid plc (NGG):
Gas Utilities Industry. Market cap of $33.57B. TTM FOCF/Revenue at 6.04% vs. a 3-yr average of 1.43% and a 5-yr average of 0.76%. The Put/Call ratio dropped by 65.91%, from 1.76 to 0.6. The stock has gained 34.04% over the last year.

10. Red Robin Gourmet Burgers Inc. (RRGB):
Restaurants Industry. Market cap of $514.08M. TTM FOCF/Revenue at 4.93% vs. a 3-yr average of 3.35% and a 5-yr average of 2.14%. The Put/Call ratio dropped by 58.46%, from 1.3 to 0.54. The stock is a short squeeze candidate, with a short float at 15.3% (equivalent to 7.25 days of average volume). The stock has had a good month, gaining 18.2%.

*Data sourced from Screener.co and Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Top 10 Stocks With Growing Cash Flows and Bullish Options Sentiment