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4 Value Stocks to Buy Amid Tech Sell-Off and Rising Geopolitical Risks
Wall Street extended its decline to a second consecutive session on Tuesday as weakness in major technology stocks and renewed geopolitical concerns weighed on investor sentiment. The S&P 500 slipped 0.32% to close at 7,728.20, while the technology-heavy Nasdaq Composite declined 0.60% to 26,445.45. The Dow Jones Industrial Average also finished lower, falling 184.13 points, or 0.34%, to 53,791.85.
Beyond the technology sell-off, investor sentiment was further pressured by higher oil prices and fading expectations that the Strait of Hormuz would reopen. The setback added to existing uncertainty over whether the United States and Iran can reach an amicable solution, leaving geopolitical risk as an important overhang for equities.
Against this backdrop, value stocks could offer investors a compelling way to navigate heightened market uncertainty. These stocks typically trade at more modest valuations relative to their underlying fundamentals, which may limit their exposure to the sharp valuation compression that can occur when investor risk appetite weakens. Companies with established businesses, consistent cash flows, solid balance sheets and reasonable valuations could, therefore, offer an attractive combination of resilience and long-term appreciation potential.
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 per share. 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 — Avnet, Inc., Lifetime Brands, Inc., Arrow Electronics, Inc. and Inter&Co, Inc. — 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 14 value stocks that qualified the screening:
Avnet, a leading global technology distributor and solutions provider, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 13.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Avnet’s current financial-year sales and EPS indicates growth of 14.9% and 70.4%, respectively, from the year-ago period. AVT has a Value Score of B. Shares of AVT have surged 75.3% over the past year.
Lifetime Brands, a leading global provider of branded kitchenware, tableware and other products, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 271.1%, on average.
The Zacks Consensus Estimate for Lifetime Brands’ current financial-year sales and EPS indicates growth of 4% and 71.6%, respectively, from the year-ago period. LCUT has a Value Score of A. Shares of LCUT have soared 143.8% over the past year.
Arrow Electronics sources and engineers technology solutions for thousands of leading manufacturers and service providers. The stock sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 34.4%, on average.
The Zacks Consensus Estimate for Arrow Electronics’ current financial-year sales and EPS indicates growth of 22.2% and 85.5%, respectively, from the year-ago period. ARW has a Value Score of A. Shares of ARW have risen 62.1% over the past year.
Inter&Co, the leading super app providing financial and digital commerce services, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 4.6%, on average.
The Zacks Consensus Estimate for INTR’s current financial-year sales and EPS indicates growth of 39% and 49.1%, respectively, from the year-ago period. INTR has a Value Score of A. Shares of INTR have declined 36.4% over the past year.
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/performancefor information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
Image: Shutterstock
Zacks.com featured highlights include Avnet, Lifetime Brands, Arrow Electronics and Inter&Co,
For Immediate Release
Chicago, IL – August 13, 2026 – Stocks in this week’s article are Avnet, Inc. (AVT - Free Report) , Lifetime Brands, Inc. (LCUT - Free Report) , Arrow Electronics, Inc. (ARW - Free Report) and Inter&Co, Inc. (INTR - Free Report) .
4 Value Stocks to Buy Amid Tech Sell-Off and Rising Geopolitical Risks
Wall Street extended its decline to a second consecutive session on Tuesday as weakness in major technology stocks and renewed geopolitical concerns weighed on investor sentiment. The S&P 500 slipped 0.32% to close at 7,728.20, while the technology-heavy Nasdaq Composite declined 0.60% to 26,445.45. The Dow Jones Industrial Average also finished lower, falling 184.13 points, or 0.34%, to 53,791.85.
Beyond the technology sell-off, investor sentiment was further pressured by higher oil prices and fading expectations that the Strait of Hormuz would reopen. The setback added to existing uncertainty over whether the United States and Iran can reach an amicable solution, leaving geopolitical risk as an important overhang for equities.
Against this backdrop, value stocks could offer investors a compelling way to navigate heightened market uncertainty. These stocks typically trade at more modest valuations relative to their underlying fundamentals, which may limit their exposure to the sharp valuation compression that can occur when investor risk appetite weakens. Companies with established businesses, consistent cash flows, solid balance sheets and reasonable valuations could, therefore, offer an attractive combination of resilience and long-term appreciation potential.
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 per share. 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 — Avnet, Inc., Lifetime Brands, Inc., Arrow Electronics, Inc. and Inter&Co, Inc. — 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 14 value stocks that qualified the screening:
Avnet, a leading global technology distributor and solutions provider, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 13.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Avnet’s current financial-year sales and EPS indicates growth of 14.9% and 70.4%, respectively, from the year-ago period. AVT has a Value Score of B. Shares of AVT have surged 75.3% over the past year.
Lifetime Brands, a leading global provider of branded kitchenware, tableware and other products, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 271.1%, on average.
The Zacks Consensus Estimate for Lifetime Brands’ current financial-year sales and EPS indicates growth of 4% and 71.6%, respectively, from the year-ago period. LCUT has a Value Score of A. Shares of LCUT have soared 143.8% over the past year.
Arrow Electronics sources and engineers technology solutions for thousands of leading manufacturers and service providers. The stock sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 34.4%, on average.
The Zacks Consensus Estimate for Arrow Electronics’ current financial-year sales and EPS indicates growth of 22.2% and 85.5%, respectively, from the year-ago period. ARW has a Value Score of A. Shares of ARW have risen 62.1% over the past year.
Inter&Co, the leading super app providing financial and digital commerce services, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 4.6%, on average.
The Zacks Consensus Estimate for INTR’s current financial-year sales and EPS indicates growth of 39% and 49.1%, respectively, from the year-ago period. INTR has a Value Score of A. Shares of INTR have declined 36.4% over the past year.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2973383/4-value-stocks-to-buy-amid-tech-sell-off-and-rising-geopolitical-risks
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.
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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/performancefor information about the performance numbers displayed in this press release.