Zacks.com featured highlights StoneCo, Centene, CVS Health and Pfizer

For Immediate ReleaseChicago, IL – June 4, 2025 – The stocks in this week’s article are StoneCo Ltd. STNE, Centene Corporation CNC, CVS Health Corporation CVS and Pfizer Inc. PFE.Top 4 Value Stocks to Buy as Trade Tensions Still Cloud H2 OutlookThe second half of 2025 has kicked off on a cautious note. While U.S. stocks opened June in positive territory, geopolitical tensions, particularly between the United States and China, continue to cast a shadow over the global economic outlook. Markets saw modest gains as investors brushed aside fresh accusations between the two superpowers regarding the breakdown of a temporary trade agreement. The S&P 500 edged up by 0.41%, closing at 5,935.94, while the Nasdaq Composite showed a stronger performance with a 0.67% increase, settling at 19,242.61. The Dow Jones Industrial Average also inched higher by 35.41 points, or 0.08%, ending the day at 42,305.48. This backdrop of rising uncertainty 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., Centene Corporation, CVS Health Corporation and Pfizer Inc.Price to Cash Flow Reveals Financial HealthQuestions 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.Here are four of the 14 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 6.4%, 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 earnings per share (EPS) suggests growth of 10.9% and 5.9%, respectively, from the year-ago period. STNE has a Value Score of B. Shares of STNE have risen 5.9% in the past year.Centene, a leading healthcare enterprise, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 25.5%, on average. (See the Zacks Earnings Calendar to stay ahead of market-making news.)The Zacks Consensus Estimate for Centene’s current financial year sales and EPS implies growth of 10.2% and 1.4%, respectively, from the year-ago period. Centene has a Value Score of A. Shares of Centene have declined 21.7% in the past year.CVS Health, a leading health solutions company, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 18.1%, on average. The Zacks Consensus Estimate for CVS Health’s current financial-year sales and EPS suggests growth of 3.5% and 12.6%, respectively, from the year-ago period. CVS Health has a Value Score of A. Shares of CVS have jumped 5.6% in the past year.Pfizer, which develops, manufactures, markets, distributes and sells biopharmaceutical products, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 43.5%, on average.The Zacks Consensus Estimate for Pfizer’s current financial year sales and EPS calls for a decline of 0.6% and 1.6%, respectively, from the year-ago period. Pfizer has a Value Score of A. Shares of PFE have fallen 20.4% 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.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. Disclosure: Performance information for Zacks’ portfolios and strategies is available at: https://www.zacks.com/performance.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2483501/top-4-value-stocks-to-buy-as-trade-tensions-still-cloud-h2-outlookFollow us on Twitter:  https://www.twitter.com/zacksresearchJoin us on Facebook:  https://www.facebook.com/ZacksInvestmentResearchZacks 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 GiaquintoCompany: Zacks.comPhone: 312-265-9268Email: pr@zacks.comVisit: 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report CVS Health Corporation (CVS): Free Stock Analysis Report Centene Corporation (CNC): Free Stock Analysis Report StoneCo Ltd. (STNE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks