10 Rallying Stocks Generating Significant Levered Free Cash Flow

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If you are an equity investor looking to go with the trend, the following list might provide you with an interesting starting point for your own analysis.

To compile this list, focused on companies with the following characteristics:

-Market cap above $300M

-Trading above the 20-day, 50-day and 200-day moving averages

-And with Levered Free Cash Flow to Current Market Cap above 10%

Please Note: Levered free cash flow is the free cash flow available to the company after paying interest on outstanding debt. It is a measure of the cash flow that is truly available to the company.

Given this information, which of these stocks are you most bullish about? Full details below.

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned

2. Compare analyst ratings for all stocks mentioned below 

3. Visualize market cap changes for the top stocks mentioned

List sorted by Levered Free Cash Flow as a percentage of Market Cap.

1. National Interstate Corporation (NATL): Property & Casualty Insurance Industry. Market cap of $408.63M. This stock is currently 0.06% above its 20-day MA, 0.24% above its 50-day MA and 0.14% above its 200-day MA. TTM levered free cashflow at 302.16M, which represents about 73.94% of the company's market cap. Relatively low correlation to the market (beta = 0.62), which may be appealing to risk averse investors. Might be undervalued at current levels, with a PEG ratio at 0.74, and P/FCF ratio at 5.75. The stock has gained 5.89% over the last year. (View investor sentiment on NATL)

2. Arch Capital Group Ltd. (ACGL): Property & Casualty Insurance Industry. Market cap of $4.50B. This stock is currently 1.69% above its 20-day MA, 7.56% above its 50-day MA and 16.32% above its 200-day MA. TTM levered free cashflow at 2.64B, which represents about 58.62% of the company's market cap. Relatively low correlation to the market (beta = 0.47), which may be appealing to risk averse investors. Might be undervalued at current levels, with a PEG ratio at 0.71, and P/FCF ratio at 5.89. The stock is a short squeeze candidate, with a short float at 6.21% (equivalent to 7.24 days of average volume). The stock has had a good month, gaining 13.09%. (View investor sentiment on ACGL)

3. RLI Corp. (RLI): Property & Casualty Insurance Industry. Market cap of $1.24B. This stock is currently 1.47% above its 20-day MA, 2.8% above its 50-day MA and 12.96% above its 200-day MA. TTM levered free cashflow at 463.57M, which represents about 37.5% of the company's market cap. Relatively low correlation to the market (beta = 0.41), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 7.42% (equivalent to 15.39 days of average volume). The stock has gained 13.86% over the last year. (View investor sentiment on RLI)

4. PDL BioPharma, Inc. (PDLI): Biotechnology Industry. Market cap of $873.0M. This stock is currently 4.97% above its 20-day MA, 12.99% above its 50-day MA and 14.84% above its 200-day MA. TTM levered free cashflow at 205.04M, which represents about 23.49% of the company's market cap. Relatively low correlation to the market (beta = 0.57), which may be appealing to risk averse investors. The stock has had a good month, gaining 15.53%.

5. NRG Energy, Inc. (NRG): Electric Utilities Industry. Market cap of $5.36B. This stock is currently 0.4% above its 20-day MA, 3.98% above its 50-day MA and 3.59% above its 200-day MA. TTM levered free cashflow at 851.12M, which represents about 15.89% of the company's market cap. The stock has lost 1.81% over the last year.

6. Vivo Participacoes S.A. (VIV): Wireless Communications Industry. Market cap of $16.75B. This stock is currently 7.07% above its 20-day MA, 17.46% above its 50-day MA and 41.74% above its 200-day MA. TTM levered free cashflow at 2.31B, which represents about 13.79% of the company's market cap. Exhibiting strong upside momentum--currently trading 7.07% above its SMA20, 17.46% above its SMA50, and 41.74% above its SMA200. The stock has had a good month, gaining 28.17%.

7. TPC Group Inc (TPCG): Chemicals - Major Diversified Industry. Market cap of $675.07M. This stock is currently 13.35% above its 20-day MA, 20.2% above its 50-day MA and 41.64% above its 200-day MA. TTM levered free cashflow at 82.00M, which represents about 12.15% of the company's market cap. Might be undervalued at current levels, with a PEG ratio at 0.9, and P/FCF ratio at 8.26. Exhibiting strong upside momentum--currently trading 13.35% above its SMA20, 20.2% above its SMA50, and 41.64% above its SMA200. The stock has had a good month, gaining 38.%.

8. Spreadtrum Communications Inc. (SPRD): Semiconductor - Broad Line Industry. Market cap of $990.02M. This stock is currently 6.53% above its 20-day MA, 0.79% above its 50-day MA and 32.26% above its 200-day MA. TTM levered free cashflow at 117.90M, which represents about 11.91% of the company's market cap. The stock has had a good month, gaining 11.17%.

9. Shanda Games Limited (GAME): Multimedia & Graphics Software Industry. Market cap of $2.14B. This stock is currently 10.42% above its 20-day MA, 12.98% above its 50-day MA and 15.95% above its 200-day MA. TTM levered free cashflow at 223.53M, which represents about 10.46% of the company's market cap. Exhibiting strong upside momentum--currently trading 10.42% above its SMA20, 12.98% above its SMA50, and 15.95% above its SMA200. The stock has had a couple of great days, gaining 14.15% over the last week.

10. ViroPharma Inc. (VPHM): Biotechnology Industry. Market cap of $1.66B. This stock is currently 0.95% above its 20-day MA, 8.3% above its 50-day MA and 25.76% above its 200-day MA. TTM levered free cashflow at 167.80M, which represents about 10.13% of the company's market cap. The stock is a short squeeze candidate, with a short float at 10.86% (equivalent to 8.8 days of average volume). The stock has had a couple of great days, gaining 12.6% over the last week.

Cash flow data sourced from Yahoo! Finance, all other data sourced from Finviz. Data sourced on April 18th. 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


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