ET 21:59

StockStory favors Corning (GLW), cautions on Bio-Techne (TECH) and SLB (SLB) despite cash flow

IMP3.0
SNT+0.3
CONF40%
Narrative

StockStory said Corning (NYSE: GLW) is the cash-generating stock most worth further research, while it advised investors to avoid Bio-Techne (NASDAQ: TECH) and SLB (NYSE: SLB), citing concerns that free cash flow alone does not ensure strong returns. Bio-Techne reported a trailing 12-month free cash flow margin of 22.3% and traded at $48.83, or 25.3 times forward earnings. SLB had a 10.8% free cash flow margin and traded at $53.22, implying 19.1 times forward earnings. Corning posted an 11.2% trailing 12-month free cash flow margin and traded at $187.25, or 54.1 times forward earnings. StockStory said investors should focus on whether companies reinvest cash effectively, rather than screening solely for high cash generation.

EditorJack Lee