MMM - 3 Top Stocks You Can Buy on Sale
These three companies have a couple of things in common. First, they have rock-solid balance sheets, and according to Wall Street analysts' forecasts, are set to generate lots of free cash flow in the coming years. Moreover, their valuations make them attractive stocks to buy. Here's why aviation services company AAR Corp. (NYSE: AIR) , industrial giant 3M (NYSE: MMM), and marine leisure company Brunswick (NYSE: BC) are good values right now.
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Free cash flow (FCF) measures how much money a company generates that management can use to do value-enhancing things for investors. It's calculated after working capital requirements and capital expenditures are taken out of net earnings. Companies can use FCF to pay off debt (thereby reducing future interest payments), pay dividends, repurchase stock, or even fund acquisitions. In theory, at least, a company could use all its FCF to pay dividends. However, in reality, most investors would want management to invest in growing earnings, too.
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3 Top Stocks You Can Buy on Sale