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Zacks.com featured highlights include StoneCo, Universal Health Services, Integer Holdings and Great Lakes Dredge & Dock
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For Immediate Release
Chicago, IL – October 13, 2025 – Stocks in this week’s article are StoneCo Ltd. (STNE - Free Report) , Universal Health Services, Inc. (UHS - Free Report) , Integer Holdings Corp. (ITGR - Free Report) and Great Lakes Dredge & Dock Corp. (GLDD - Free Report) .
4 Value Stocks to Buy as Markets Eye Earnings & Government Shutdown
The S&P 500 dropped 0.28% to 6,735.11, the Nasdaq slipped 0.08% to 23,024.63, and the Dow fell 243.36 points, or 0.52%, closing at 46,358.42 yesterday, owing to concerns over the ongoing U.S. government shutdown. Attention is now shifting to the earnings season, with investors closely monitoring whether the shutdown could slow economic activity or affect corporate results. Market pundits are evaluating potential impacts on consumer confidence and business spending, while markets remain on edge. This backdrop makes a compelling case for value investing.
When evaluating value stocks, one of the most effective valuation metrics is the Price to Cash Flow (P/CF) ratio. This metric measures the market price of a stock relative to the cash flow the company generates on a per-share basis. A lower P/CF ratio indicates that the stock is trading at a better value, offering strong cash generation potential relative to its price. Here are four companies — StoneCo Ltd., Universal Health Services, Inc., Integer Holdings Corp. and Great Lakes Dredge & Dock Corp. — that boast a low P/CF ratio.
Price to Cash Flow Reveals Financial Health
Questions may arise as to why we are considering the P/CF valuation metric when the most widely used metric is Price/Earnings (or P/E). Well, what makes P/CF stand out is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, reflecting 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. It is net cash flow that reveals how much money a company is actually generating and how effectively management is putting the same to use.
A positive cash flow indicates an increase in the company’s liquid assets. This gives the company the means to settle debt, shell out for its expenses, reinvest in its business, endure downturns and finally pay back its shareholders. Then again, a negative cash flow implies a decline in the company’s liquidity, which lowers its flexibility to support these moves.
What’s the Best Value Investing Strategy?
An investment decision solely based on the P/CF metric may not fetch 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 four of the 12 value stocks that qualified the screening:
Stone, a leading provider of financial technology and software solutions, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 11.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Stone’s current financial-year sales and EPS indicates growth of 9.8% and 20%, respectively, from the year-ago period. STNE has a Value Score of B. Shares of STNE have advanced 63.5% in the past year.
Integer Holdings, one of the largest medical device contract development and manufacturing organizations, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 1.3%, on average.
The Zacks Consensus Estimate for Integer Holdings’ current financial-year sales and EPS calls for growth of 7.8% and 20.4%, respectively, from the year-ago period. Integer Holdings has a Value Score of B. Shares of ITGR have fallen 20% in the past year.
Universal Health Services, one of the nation's largest hospital companies, operating through its subsidiaries, acute care hospitals, behavioral health facilities and ambulatory centers, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 9.4%, on average.
The Zacks Consensus Estimate for Universal Health Services’ current financial-year sales and EPS calls for growth of 8.5% and 23%, respectively, from the year-ago period. Universal Health Services has a Value Score of A. Shares of UHS have declined 5.9% in the past year.
Great Lakes Dredge & Dock, the largest provider of dredging services in the United States, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 45.3%, on average.
The Zacks Consensus Estimate for Great Lakes Dredge & Dock’s current financial-year sales and EPS indicates growth of 9% and 21.4%, respectively, from the year-ago period. Great Lakes Dredge & Dock has a Value Score of A. Shares of GLDD have declined 1.2% 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.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks 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.
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.
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Zacks.com featured highlights include StoneCo, Universal Health Services, Integer Holdings and Great Lakes Dredge & Dock
For Immediate Release
Chicago, IL – October 13, 2025 – Stocks in this week’s article are StoneCo Ltd. (STNE - Free Report) , Universal Health Services, Inc. (UHS - Free Report) , Integer Holdings Corp. (ITGR - Free Report) and Great Lakes Dredge & Dock Corp. (GLDD - Free Report) .
4 Value Stocks to Buy as Markets Eye Earnings & Government Shutdown
The S&P 500 dropped 0.28% to 6,735.11, the Nasdaq slipped 0.08% to 23,024.63, and the Dow fell 243.36 points, or 0.52%, closing at 46,358.42 yesterday, owing to concerns over the ongoing U.S. government shutdown. Attention is now shifting to the earnings season, with investors closely monitoring whether the shutdown could slow economic activity or affect corporate results. Market pundits are evaluating potential impacts on consumer confidence and business spending, while markets remain on edge. This backdrop makes a compelling case for value investing.
When evaluating value stocks, one of the most effective valuation metrics is the Price to Cash Flow (P/CF) ratio. This metric measures the market price of a stock relative to the cash flow the company generates on a per-share basis. A lower P/CF ratio indicates that the stock is trading at a better value, offering strong cash generation potential relative to its price. Here are four companies — StoneCo Ltd., Universal Health Services, Inc., Integer Holdings Corp. and Great Lakes Dredge & Dock Corp. — that boast a low P/CF ratio.
Price to Cash Flow Reveals Financial Health
Questions may arise as to why we are considering the P/CF valuation metric when the most widely used metric is Price/Earnings (or P/E). Well, what makes P/CF stand out is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, reflecting 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. It is net cash flow that reveals how much money a company is actually generating and how effectively management is putting the same to use.
A positive cash flow indicates an increase in the company’s liquid assets. This gives the company the means to settle debt, shell out for its expenses, reinvest in its business, endure downturns and finally pay back its shareholders. Then again, a negative cash flow implies a decline in the company’s liquidity, which lowers its flexibility to support these moves.
What’s the Best Value Investing Strategy?
An investment decision solely based on the P/CF metric may not fetch 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 four of the 12 value stocks that qualified the screening:
Stone, a leading provider of financial technology and software solutions, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 11.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Stone’s current financial-year sales and EPS indicates growth of 9.8% and 20%, respectively, from the year-ago period. STNE has a Value Score of B. Shares of STNE have advanced 63.5% in the past year.
Integer Holdings, one of the largest medical device contract development and manufacturing organizations, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 1.3%, on average.
The Zacks Consensus Estimate for Integer Holdings’ current financial-year sales and EPS calls for growth of 7.8% and 20.4%, respectively, from the year-ago period. Integer Holdings has a Value Score of B. Shares of ITGR have fallen 20% in the past year.
Universal Health Services, one of the nation's largest hospital companies, operating through its subsidiaries, acute care hospitals, behavioral health facilities and ambulatory centers, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 9.4%, on average.
The Zacks Consensus Estimate for Universal Health Services’ current financial-year sales and EPS calls for growth of 8.5% and 23%, respectively, from the year-ago period. Universal Health Services has a Value Score of A. Shares of UHS have declined 5.9% in the past year.
Great Lakes Dredge & Dock, the largest provider of dredging services in the United States, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 45.3%, on average.
The Zacks Consensus Estimate for Great Lakes Dredge & Dock’s current financial-year sales and EPS indicates growth of 9% and 21.4%, respectively, from the year-ago period. Great Lakes Dredge & Dock has a Value Score of A. Shares of GLDD have declined 1.2% 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/2766398/4-value-stocks-to-buy-as-markets-eye-earnings-and-government-shutdown
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks 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 Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: 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.