First Commonwealth Financial (FCF) Stock

AB InBev looks like a good relative value opportunity down 25.8% from 52-week highs and now giving a 8.50% free cash flow yield from a stable mature company. The company's Q3 results show 2.1% revenue growth despite a 2.4% volume decline, driven by a 4.6% price increase. The company posted a 7.1% YoY increase in normalized EBITDA, with disciplined SG&A costs and EBITDA margin expansion to 36.0%.

Traditional free cash flow (FCF) ETFs may have missed out on investing in Vistra (VST) and NRG Energy (NRG) before the two stocks saw impressive growth. NRG and Vistra are high-performing stocks that have benefited from the surge in electricity demand.

FCF's acquisition of CenterGroup will strengthen the former's commercially focused strategy in the Cincinnati market by adding a 65% business client base.

INDIANA, Pa. and CINCINNATI, Oh., Dec. 18, 2024 (GLOBE NEWSWIRE) -- First Commonwealth Financial Corporation (“First Commonwealth”) (NYSE: FCF), the holding company for First Commonwealth Bank, and CenterGroup Financial, Inc.  (“CenterGroup”), the holding company for CenterBank, today jointly announced the signing of an Agreement and Plan of Merger (“Agreement”) providing for the merger of CenterGroup with and into First Commonwealth in an all-stock transaction valued at approximately $54.6 million in the aggregate, based upon the closing stock price of First Commonwealth as of December 17, 2024. Following the merger of CenterGroup with and into First Commonwealth, CenterBank will merge with and into First Commonwealth Bank.

Investors may be able to enhance a portfolio's risk-adjusted returns by pairing a free cash flow (FCF) ETF with their growth exposure. FCF represents the cash a company generates after accounting for cash payments to support operations and maintain its capital assets.

On a near 15% equity free cash flow yield, it seems well discounted in the CABO stock. Advantaged/less competitive rural network, cheaper to buy than compete with. MBI transaction, a bad deal but overly discounted.

Consumer Staples stocks, including Conagra Brands, have underperformed relative to the S&P 500, with depressed P/E multiples among many blue-chip names. I rate Conagra Brands as a buy, seeing it undervalued despite technical chart issues and recent disappointing quarterly earnings. Key risks include rising interest rates, food commodity inflation, and a weaker global macroeconomic environment, but CAG's high free cash flow yield is a positive.

INDIANA, Pa., Dec. 05, 2024 (GLOBE NEWSWIRE) -- In a move to respond to growth and further develop its Legal and Risk leadership teams, First Commonwealth Bank has promoted Deputy Chief Risk and Chief Compliance Officer Linda Metzmaier to Executive Vice President/Chief Risk Officer, effective Jan. 1, 2025.

Teleperformance stock is undervalued, trading at €89/share with a P/E of 6x, despite strong fundamentals and a diversified revenue stream across multiple sectors. The company has shown consistent growth, with 3% pro forma and 26.7% reported in Q3'24, and maintains a BBB rating with solid financials. Teleperformance's FCF is robust, enabling dividends, strategic M&As, and share buybacks, contributing to a levered FCF yield of 18.8%.