Zacks.com featured expert Kevin Matras highlights: Broadridge Financial, US Airways, Montpelier, Netflix and Pericom Semiconductor PR Newswire CHICAGO, Nov. 20, 2013 CHICAGO, Nov. 20, 2013 /PRNewswire/ --Stocks in this week's article include: Broadridge Financial (NYSE: BR – Free Report), US Airways (NYSE: LCC – Free Report), Montpelier (NYSE: MRH – Free Report), Netflix (NASDAQ: NFLX – Free Report) and Pericom Semiconductor (NASDAQ: PSEM – Free Report). Kevin Matras shows how to search for stocks with increasing Cash Flows, but low Price to Cash Flow ratios. (Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO) Screen of the Week written by Kevin Matras of Zacks Investment Research: The Price to Earnings ratio (or P/E) is probably the most common ratio in determining whether a company is under or overvalued. However, the Price to Cash Flow (or P/CF) is another great ratio to do just that. Cash, of course, is vital to a company's financial health in order to finance operations, invest in the business, etc. And cash can't really be manipulated on the Income Statement like earnings can. The reason why some like this measurement better than the P/E ratio is because the net income of the Cash Flow portion rightly adds depreciation and amortization back in, since these are not cash expenditures. Whereas the net income that goes into the Earnings portion of the P/E ratio does not add these in, thus artificially reducing the income and skewing the P/E ratio. So many analysts prefer using the Price to Cash Flow metric to judge a stock's value. The screen I'm running today is relatively simple: For the rest of this Screen of the Week article please visit Zacks.com at: http://www.zacks.com/commentary/29989/ Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don't wait for the market to get better before you decide to do better. Start learning how to be a better trader today: http://at.zacks.com/?id=111 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. 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Zacks.com featured expert Kevin Matras highlights: Broadridge Financial, US Airways, Montpelier, Netflix and Pericom
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