First Commonwealth Financial Corporation (FCF)
NYSE NYSE Primary 
XFRA 
First Commonwealth Financial (FCF) Misses Q3 Earnings Estimates
First Commonwealth Financial (FCF) came out with quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.39 per share a year ago.
TotalEnergies: Q3 Likely Weaker But Dual-Pillar Growth Story Remains Intact
Q3 results previewed weaker as refining margins seen down 66% from Q2. Also factoring in lower liquids prices and weaker trading, we estimate Q3 CFO down 8% q/q. Yet, we remain highly positive on Total's midterm outlook with mgmt guiding for ~7% FCF/sh CAGR through 2030, materially above Shell and BP. This is supported by Integrated Power becoming FCF-positive by 2028 and production growing at ~3% annually, potentially making Total the largest European major by the end of the decade.
Central Garden & Pet Company: Generating Consistent And Sustainable FCF Across Different Economic Cycles
Central Garden & Pet Company reported a 3% YoY sales decline in 3Q24, with gross margins improving but operating and net incomes declining. The company's revenue outlook remains weak due to poor consumer sentiment, unfavorable weather, softer pet adoptions, and macroeconomic pressures. The Cost & Simplicity program has yet to significantly improve financials, with operating costs remaining elevated despite some margin improvements.
Why I'm Upgrading Petrobras Back To Buy
I'm upgrading Petrobras back to "Buy" due to higher-than-expected FCF yield and business resilience despite struggling commodities markets. Q2 results show increased net revenues, strong cash flow, and operational efficiency, with notable production and refining achievements. Petrobras maintains low-cost production and high FCF yields, supported by unique pre-salt assets and strategic investments in exploration and renewable energy.
TD Synnex Corp.: FY25 Should Be A Better Year
I maintain a buy rating for SNX due to improving PC demand, AI adoption, and a complex IT environment driving growth. 3Q24 revenue grew 5% y/y to $14.7 billion, beating expectations; however, gross margin was softer at 6.5% vs. consensus of 6.9%. Despite lowered FY24 FCF outlook to $1 billion, growth investments justify this, and medium-term FCF target of >$1.5 billion/year remains intact.
Garrett Motion: Deleveraging Progress Not Yet Reflected In Its Share Price
Shares are down more than 15% this year on fears related to its declining sales. Despite ongoing macroeconomic headwinds, the business continues to generate strong FCF, which has been deployed towards deleveraging and share repurchases. Shares are valued at just 5.5 times this year's FCF, which is a significant discount to peers.
Priority Technology: Mobile Payments And FCF Growth Indicate Undervaluation
Priority Technology Holdings is poised to benefit from the growing adoption of mobile payments and innovative payment methods, driving substantial revenue and FCF growth. The company's strong network of distribution partners, successful inorganic growth strategies, and acquisition of new clients support its undervaluation and future growth potential. Financial forecasts indicate a fair price of $8.19 per share, suggesting significant upside from the current market price.
Teladoc Health: Some Negative Things, But One Aspect That Makes Me Feel Positive
Teladoc's stock fell ~97% from its peak, but recent changes, including a new CEO, present a high-risk, high-reward opportunity. Positive year-over-year trends in integrated care members and chronic care enrollment, but effective monetization of these members remains a challenge. However, Teladoc's strong FCF and cheap valuation, trading at 4-5 times FCF, make it a potential turnaround candidate.
iQIYI: Undervalued Stock, And AI-Powered FCF Growth
iQIYI is trading at multiyear lows, with significant investments in AI and R&D expected to drive user growth and net sales. Baidu's control and support, including increased user traffic, bolster IQ's potential for future growth and profitability. Despite recent profitability and reduced debt, IQ remains undervalued compared to peers, with a promising EPS growth forecast for 2025-2027.
Builders FirstSource: Rollup With High FCF Yield
BLDR's strategy is to continue to make acquisitions, have a strong balance sheet, buyback shares, and generate high free cash flow. The company is using significant cash flow to repurchase shares, retiring roughly 40% of shares over the past 3 years. Management is transforming the business from a non-value-added seller of housing materials to a value-added housing supplier.
BMW Offers Value: Trading At 8.7x FCF And 7% Dividend Yield
BMW faces pricing pressures and increased competition, leading to a decline in profit margins, with Q2 2024 EBIT margin falling to 8.4%. Despite these challenges, BMW's free cash flow remains strong, with an automotive FCF forecast exceeding €6 billion for 2024. BMW shares are trading at low levels with a P/E ratio of around 5x, presenting a significant value opportunity for investors.
Guess?: Stock Repurchases, Ecommerce Efforts, M&A, And Cheap
Guess?, Inc. shows strong potential with proven business models, positive net income, and FCF growth, indicating significant upside in stock price. Strategic investments in ecommerce, brand extension, and acquisitions like WHP Global and rag & bone are expected to drive future net sales and FCF growth. The company's undervaluation at $21 per share, compared to its buyback price of $34, suggests considerable upside potential, supported by a new $200 million repurchase program.
