MMM - Don't Overlook These 3 Powerhouse Stocks in 2023
The industrial sector could positively surprise investors in 2023. There's evidence to suggest that companies like 3M (NYSE: MMM) , Caterpillar (NYSE: CAT) , and Johnson Controls (NYSE: JCI) are set to generate significant improvements in cash flow generation this coming year.
Moreover, their current valuations are not reflecting the whole picture with regard to their underlying free-cash-flow generation. Therefore, investors should closely watch the industrial sector and all three of these stocks.
Free cash flow ( FCF ) is what's left over from net income after working capital (cash used to run the business) and capital expenditures are taken out. In other words, it's the flow of money in a year that can be used to pay down debt, make acquisitions, or return to shareholders through share buybacks or dividends. As a result, it's one of the key metrics used to value stocks.
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Don't Overlook These 3 Powerhouse Stocks in 2023