Buy the Dip Monday: Semiconductor Drawdowns, 37% FCF Yields, and Ten Insider Buys

This Week's Setup

The value screener is pulling up earnings yields north of 16% on names trading at single-digit P/E multiples, while the S&P 500 CAPE sits at 38.9. Fear & Greed at 45 suggests neither panic nor euphoria; the screen is surfacing drawdowns from 16% to 91% off 52-week highs, with analyst price targets implying upside ranging from 12% to 894%.

Three of the top five names show insider Form 4 activity in the past 30 days, including net share purchases at a media business trading below book value and transactions across directors at a natural gas producer targeting data center and LNG demand.

Quick Scan

The 8 Names

1. KLA Corporation (KLAC)

P/E: 5.29 | Earnings yield: 18.9% | 52w drawdown: -90.9%

KLA trades at an earnings yield of 18.9% with a 15.4% free cash flow yield, while revenue grew 23.9% year-over-year and gross margin stands at 60.9%. The company generates a 66.5% return on invested capital, and analysts peg the upside at 894% from current levels.

The normalized 10-year P/E of 101 signals the current price reflects an extreme discount relative to the decade-long earnings average, and the 91% drawdown from the 52-week high suggests either a structural break in the semiconductor capital equipment cycle or a severe sentiment dislocation. The EV/EBITDA of 43.5 and debt-to-equity of 1.31 add leverage risk to the volatility.

Bren D. Higgins and Virendra A. Kirloskar filed Form 4 transactions in early July, and Zacks upgraded the stock to Strong Buy with coverage emphasizing advanced packaging growth tailwinds.

2. QUALCOMM Incorporated (QCOM)

P/E: 15.98 | Earnings yield: 6.3% | 52w drawdown: -42.8%

QUALCOMM posts a 6.3% earnings yield and an 8.2% free cash flow yield, paired with 13.7% revenue growth and a 39.5% return on invested capital. The yield spread against the 10-year Treasury earns 1.5 percentage points, and the shareholder yield of 3.5% combines dividends and buybacks.

CEO Akash J. Palkhiwala filed a Form 4 transaction in mid-July, and news flow highlights the company's positioning in 6G AI-native networks alongside competitive pressure from Chinese semiconductor firms. Short interest at 4.8% of float is the highest in the top eight.

The 43% drawdown from peak and the recent Yahoo Finance article on Chinese competition risk suggest market concern about Qualcomm's smartphone chip franchise and the pace of diversification into automotive and IoT.

3. Versant Media Group, Inc. (VSNT)

P/E: 5.95 | Earnings yield: 16.8% | 52w drawdown: -39.5%

Versant Media trades at 0.50× book value with a 36.8% free cash flow yield and a 16.8% earnings yield, while the company pays a 4.2% dividend covered by over 8× via FCF. The normalized 10-year P/E of 3.73 implies the current multiple is elevated relative to the company's historical earnings power, yet the absolute 5.95× trailing P/E remains in value territory.

Ten insider transactions over the past six months resulted in net purchases of 167,850 shares, all buys and zero sells. Mark H. Lazarus filed a Form 4 transaction on July 30, the most recent in a string of director and officer purchases dating back through the second quarter.

Revenue fell 5.3% year-over-year, and the company reports second-quarter earnings on August 6 with an estimated EPS of $1.42 and revenue of $1.6 billion. Zacks coverage flagged the Q2 miss, and short interest at 2.9% of float sits above the median for this screen.

4. Newmont Corporation (NEM)

P/E: 12.09 | Earnings yield: 8.3% | 52w drawdown: -30.9%

Newmont posts an 8.3% earnings yield and a 7.3% free cash flow yield on 21.3% year-over-year revenue growth, with a 53% gross margin and a 29.9% return on invested capital. Analysts see 53% upside to the $142.82 consensus target, and the shareholder yield of 2.0% includes the 1.1% dividend and buyback activity.

Three insiders filed Form 4 transactions in late July, though the six-month data shows net sales of 18,394 shares with all transactions on the sell side. Argus Research adjusted the price target to $110 from $125 while maintaining a Buy rating, citing updated earnings estimates.

The debt-to-equity of 0.16 and EV/EBITDA of 6.88 position Newmont conservatively on the balance sheet, yet the 30.9% drawdown and the downward target revision signal analyst caution about gold price sustainability or operational execution risk.

5. EQT Corporation (EQT)

P/E: 10.00 | Earnings yield: 10.0% | 52w drawdown: -22.8%

EQT trades at a 10.0% earnings yield with an 8.6% free cash flow yield, and revenue surged 60.0% year-over-year on expanding natural gas volumes tied to data center, power, and LNG demand. The company generates a 9.2% return on invested capital with a 45.9% gross margin, and the EV/EBITDA of 5.73 ranks as the lowest multiple in the top five.

Curtis Barry, Martha Willis, and John McCartney filed Form 4 transactions in late July and early July, and Zacks published two articles highlighting EQT's positioning for data center power demand and global LNG growth. Goldman Sachs raised the price target to $62 from $60 with a Buy rating.

The normalized 10-year P/E of 17.83 implies the current 10× multiple reflects a discount to the company's historical earnings power, though the 22.8% drawdown and the absence of a dividend leave total return dependent on price appreciation and commodity price direction.