Zacks.com featured highlights include Harmony Biosciences, Universal Health Services, Concentrix and Global Payments

CHICAGO, Feb. 2, 2026 – As investors grapple with a mixed market and renewed concerns over the technology sector's growth trajectory, a focus on fundamental value is re-emerging as a key defensive strategy. Amid this cautious sentiment, an analysis by Zacks.com highlights four companies—Harmony Biosciences, Universal Health Services, Concentrix, and Global Payments—as compelling opportunities based on a rigorous screening process that prioritizes strong cash generation, a metric often considered more reliable than earnings.

The U.S. stock market presented a fractured picture in the latest session. While the Dow Jones Industrial Average posted a modest gain, the broader S&P 500 and the tech-heavy Nasdaq Composite retreated, dragged down by a sell-off in bellwethers like Microsoft following its earnings report. This divergence underscores a market increasingly skeptical of high valuations and searching for tangible value in an environment clouded by rising oil prices and geopolitical uncertainty.

The Case for Cash Flow in a Cautious Market

In today's investment climate, discerning investors are looking beyond traditional earnings metrics, which can be influenced by accounting conventions and management estimates. The focus is shifting to cash flow, the actual cash a company generates, as a more transparent indicator of financial health.

The Price-to-Cash-Flow (P/CF) ratio has become a central tool in this analysis. It measures a company's market price against the cash it generates per share, offering a clear view of its operational efficiency and financial resilience.

• Why it matters: A low P/CF ratio suggests a stock may be undervalued relative to its ability to generate cash. This cash can be used to pay down debt, fund operations, reinvest for growth, weather economic downturns, and ultimately return capital to shareholders.

• A more reliable metric: Unlike earnings, which include non-cash charges like depreciation and amortization, operating cash flow reflects the real liquidity of a business. Analysts favor it as a cleaner, less manipulable measure of a company's core financial performance.

• Avoiding "value traps": Relying on a single metric can be misleading. A comprehensive value screen, such as the one employed by Zacks, combines a low P/CF ratio with other valuation measures (like Price-to-Earnings and Price-to-Sales), a strong Zacks Rank (#1 for "Strong Buy" or #2 for "Buy"), and a high Value Score (A or B). This multi-factor approach helps distinguish genuinely undervalued companies from those with fundamental problems.

Four Value Stocks Passing the Screen

Based on this robust methodology, four companies across different sectors have been identified for their attractive valuation and strong underlying fundamentals.

Harmony Biosciences (HRMY)

Harmony Biosciences stands out in the pharmaceutical sector with top-tier ratings and significant growth potential. Despite a recent dip in its stock price, its financial outlook remains robust.

• Company Profile: A pharmaceutical firm focused on developing and commercializing therapies for patients with rare neurological disorders.
• Zacks Metrics: The stock holds a coveted Zacks Rank #1 (Strong Buy) and a Value Score of A, indicating it is highly rated for both its earnings momentum and valuation.
• Performance & Outlook: The Zacks Consensus Estimate for the current fiscal year points to impressive growth, with sales projected to increase by 21.4% and earnings per share (EPS) by 25.9% from the prior year.
• Investment Angle: Shares have declined 4.9% over the past year, creating a potential entry point for investors who believe in the company's strong growth trajectory and its consistent ability to beat earnings estimates, which it has done by an average of 7.2% over the last four quarters.

Universal Health Services (UHS)

As a stalwart in the healthcare facilities industry, Universal Health Services demonstrates a powerful combination of steady growth and strong earnings performance.

• Company Profile: One of the nation's largest healthcare management companies, operating acute care hospitals, outpatient centers, and behavioral health facilities.
• Zacks Metrics: Carries a Zacks Rank #2 (Buy) and a Value Score of A, reflecting its solid fundamentals and attractive price point.
• Performance & Outlook: Analysts forecast significant bottom-line expansion, with a projected 31.3% increase in EPS on a 9.7% rise in sales for the current fiscal year.
• Investment Angle: Unlike the other stocks on this list, UHS shares have risen 6.1% over the past year. The company's exceptional track record of beating earnings expectations—by an average of 15.2% over the trailing four quarters—suggests strong operational execution.

Concentrix Corporation (CNXC)

Concentrix represents a value play within the technology services sector, a space currently under market scrutiny. Its severely depressed stock price may offer a significant opportunity for patient investors.

• Company Profile: A global leader in technology and services, specializing in customer experience (CX) solutions for major brands.
• Zacks Metrics: The company is rated a Zacks Rank #2 (Buy) with a Value Score of A.
• Performance & Outlook: Growth is expected to be more modest, with consensus estimates calling for a 2.9% increase in sales and a 4.8% rise in EPS for the current fiscal year.
• Investment Angle: The stock has plunged 26.1% over the past year. For value-oriented investors, this sharp pullback, combined with its strong Zacks ratings and positive, albeit modest, growth outlook, presents a classic deep-value scenario.

Global Payments Inc. (GPN)

In the dynamic fintech landscape, Global Payments has been heavily discounted by the market, making it another prime candidate for investors hunting for value.

• Company Profile: A leading provider of payment technology and software solutions to a global client base of merchants, issuers, and consumers.
• Zacks Metrics: Holds a Zacks Rank #2 (Buy) and a Value Score of A, signaling that its fundamentals and valuation are attractive.
• Performance & Outlook: The company is projected to deliver steady growth, with sales expected to climb 1.8% and EPS to grow by 5.8% in the current fiscal year.
• Investment Angle: Shares have fallen a staggering 36.8% over the past year. This dramatic decline has positioned the stock as a potential bargain, especially given its consistent earnings beats (1.9% average surprise) and its foundational role in the digital payments ecosystem.

The Bottom Line

In a market that is increasingly punishing high-flying growth stocks and rewarding tangible results, a focus on cash flow provides a grounded approach to identifying opportunities. The methodology highlighting Harmony Biosciences, Universal Health Services, Concentrix, and Global Payments demonstrates a disciplined strategy for uncovering potentially undervalued companies with resilient business models.

While these screens serve as a powerful starting point, they underscore a broader theme: investors are best served by conducting thorough due diligence and looking beyond surface-level metrics to understand the true financial health of a company before committing capital.