Buy the Dip Monday: The 32.5% FCF Yield With Ten Insider Buys and Zero Sells

This Week's Setup

The value screen is pricing three things at once: natural gas producers trading at 10.4% FCF yields while revenue climbs 49% year over year, a 32% drawdown in a materials supplier that analysts see 26% higher, and a media group carrying a 32.5% FCF yield at 7.5× earnings with ten insider buys and zero sells in the last six months.

S&P 500 CAPE sits at 38.9, near the 95th percentile of historical observations, while Fear & Greed holds neutral at 50. When long-cycle valuations run this hot, stocks that trade below normalized earnings multiples and generate double-digit free cash flow yields offer asymmetry.

Industrial metals, solar manufacturing, and Appalachia gas are showing revenue expansion in the face of 20–36% drawdowns, creating the tension between operational momentum and market sentiment that this screener hunts.

Quick Scan

The 8 Names

1. Kennametal Inc. (KMT)

P/E: 16.76 | Earnings yield: 6.0% | 52w drawdown: -31.9%

Revenue declined 3.9% year over year and gross margin sits at 30.4%, both metrics showing operational headwinds in the industrial cutting tools and infrastructure segments.

The stock trades at 16.8× trailing earnings versus a normalized 10-year P/E of 23.2, and analysts project 26.2% upside to $37.64. A 5.3% FCF yield and 2.7% dividend yield combine for 7.8% shareholder return at current prices.

Sagar Patel and Amanda Cole each filed Form 4 buys on August 18, and Cole added shares again on August 3. Kennametal appointed Dawne Hickton and Richard Harshman to its board in August, signaling governance refresh alongside the insider activity.

2. Versant Media Group, Inc. (VSNT)

P/E: 7.54 | Earnings yield: 13.3% | 52w drawdown: -30.3%

The company trades at 7.5× earnings while generating a 32.5% FCF yield, the highest free cash flow conversion in the screen. Normalized 10-year P/E is 4.2, one of the lowest long-horizon valuations in the dataset.

Ten insider transactions in the last six months added 167,850 net shares with a 100% buy ratio and zero sells. That dollar commitment from management is the most lopsided insider signal in this week's screen.

Revenue fell 5.3% year over year and the stock sits 30% off its 52-week high despite the FCF strength, pointing to either a business transition or investor concern about the sustainability of cash generation.

3. CNX Resources Corporation (CNX)

P/E: 4.83 | Earnings yield: 20.7% | 52w drawdown: -16.9%

The stock trades at 4.8× earnings and yields 10.4% on free cash flow while revenue climbed 48.9% year over year. EV/EBITDA of 3.3 and a 20.7% earnings yield put CNX at the cheapest valuation on the screen by trailing multiples.

Navneet Behl and Alan Shepard filed Form 4 buys on August 17, and Ian McGuire added shares on August 6, giving CNX three insider purchases in the last 30 days. All three are executives, not outside directors.

Short interest stands at 10.0% of float, the highest short ratio in the screen, and gross margin of 47.2% trails the energy peer average. Debt-to-equity of 0.58 is manageable but leaves less cushion than the 0.06 at First Solar.

4. EQT Corporation (EQT)

P/E: 10.39 | Earnings yield: 9.6% | 52w drawdown: -19.8%

Revenue grew 60.0% year over year, the fastest top-line expansion in the screen, and ROIC of 9.2% is rising with the volume. The stock trades at 10.4× earnings versus a normalized 10-year P/E of 17.8, and analysts see 28.0% upside to $70.04.

The 1.2% dividend yield lags the 3.7% at Versant and the 2.7% at Kennametal, and shareholder yield of zero signals no buyback activity despite the 8.3% FCF yield.

CEO Toby Rice filed a Form 4 transaction on August 18. Short interest is 3.4% of float, below the 10.0% at CNX and the 8.5% at First Solar, and EQT reports October 20 earnings with consensus expecting $0.49 EPS on $2.0 billion revenue.

5. GSK plc (GSK)

P/E: 13.08 | Earnings yield: 7.6% | 52w drawdown: -18.8%

ROIC of 19.9% is the second highest in the screen after Qualcomm, and gross margin of 72.4% reflects pharma pricing power. The stock trades at 13.1× earnings versus a normalized 10-year P/E of 14.3, and analysts project 15.6% upside to $57.94.

Revenue growth of 4.1% year over year is the slowest top-line expansion among the five Pro names, and the stock carries an EV/EBITDA multiple of 18.7, the highest valuation on that metric in the screen.

Debt-to-equity of 1.17 is the second highest leverage ratio in the dataset behind only Qualcomm's 0.72, and the FDA granted priority review to Jemperli's sBLA for rectal cancer in August, adding binary regulatory risk to the near-term setup.