Buy the Dip Monday: Ten Insider Buys and a 34% FCF Yield in a 33% Drawdown

This Week's Setup

The value screener is surfacing a 34% FCF yield on a media group trading at 7.2× earnings while ten insider buys in the last six months added 167,850 net shares.

EQT delivers a 9.8% earnings yield at 10.3× P/E with 60% year-over-year revenue growth, yet sits 21% off its 52-week high. Fear & Greed at 62 suggests greed, but the screen continues to pull names with double-digit earnings yields while the S&P 500 CAPE rests at 38.9.

Quick Scan

The 8 Names

1. Kennametal Inc. (KMT)

P/E: 17.3 | Earnings yield: 5.8% | 52w drawdown: 29.6%

The setup here is a 5.1% FCF yield at a 30% drawdown while three insiders added shares in the last 30 days, including two buys by CFO Faisal Hamadi on July 29 and August 3. Analysts see 22% upside to $37.64 from the current $30.83, and the 2.6% dividend yield is covered by 1.96× FCF.

Revenue fell 3.9% year-over-year and the normalized 10-year P/E of 23.2 suggests the current multiple sits below historical average for a reason. Gross margin of 30.4% is thin for an industrial toolmaker, flagging limited pricing power or commodity input pressure.

The EV/EBITDA of 8.5 is reasonable, but debt-to-equity of 0.51 combined with weak top-line growth means any further margin compression would pressure the FCF that underpins the dividend cover.

2. EQT Corporation (EQT)

P/E: 10.3 | Earnings yield: 9.8% | 52w drawdown: 20.8%

EQT delivers a 9.8% earnings yield and 8.4% FCF yield at 10.3× P/E while revenue surged 60% year-over-year, the strongest growth rate on this week's screen. The 9.2% ROIC and 46% gross margin sit well above the natural gas peer average, and the EV/EBITDA of 5.7 is the lowest multiple in the top eight.

Three insiders bought shares in late July, with transactions by Martha Willis, Barry Curtis, and Jeffrey Kiesel all executed on July 22 during the same filing period. Barclays lowered its target to $68 from $70 but maintained an overweight rating, implying 26% upside from the current $54.04.

The company pays no dividend and shareholder yield is zero despite the strong FCF generation, so capital return is via buybacks or debt reduction rather than immediate income. Short interest of 3.4% is modest but rising alongside the recent drawdown.

3. GSK plc (GSK)

P/E: 12.8 | Earnings yield: 7.8% | 52w drawdown: 20.4%

GSK combines a 7.8% earnings yield with a 3.7% dividend yield and 20% ROIC, the second-highest return on invested capital in the top eight. The 4.8% FCF yield covers the dividend 1.32× and the 72% gross margin reflects pricing power in the pharma portfolio. The stock trades at 12.8× earnings, below the 14.3× normalized 10-year P/E.

News mentions pipeline acceleration as a potential growth catalyst, and the company's diversified drug portfolio spans vaccines, oncology, and respiratory. Analyst consensus sees 18% upside to $57.94 from the current $49.12.

Revenue growth of 4.1% year-over-year is the slowest on this screen, and the debt-to-equity ratio of 1.17 is the second-highest leverage load in the top eight. The EV/EBITDA of 18.7 is elevated for a large-cap pharma, suggesting the market is already pricing in some of the pipeline upside.

4. Newmont Corporation (NEM)

P/E: 15.4 | Earnings yield: 6.5% | 52w drawdown: 11.8%

Newmont posts a 30% ROIC, the highest on this screen, alongside 21% revenue growth and 53% gross margin. The 5.8% FCF yield and 0.9% dividend yield combine for a 2.0% shareholder yield, and the debt-to-equity ratio of 0.16 is the lowest leverage on the list. Analysts at BofA raised their target to $145 from $135, implying 22% upside from $118.94.

Three insiders sold shares in late July and early August, with Peter Toth, Mark Rodgers, and Brian Tabolt all executing disposals. The insider net position over six months is negative 18,394 shares, a 100% sell-side skew. BNP Paribas lifted its target to $112 from $102 but maintains a neutral rating.

The 11.8% drawdown is the shallowest on this screen, meaning less mean-reversion upside than peers. Gold hit $4,400 and the miners are catching up, but the stock is already reflecting much of the commodity rally; further gains depend on gold staying above $4,200 or operational efficiency improving beyond current expectations.

5. Versant Media Group, Inc. (VSNT)

P/E: 7.2 | Earnings yield: 13.9% | 52w drawdown: 33.4%

Versant trades at 7.2× earnings and delivers a 34% FCF yield, the highest cash generation rate on this screen. The 13.9% earnings yield sits 900 basis points above the S&P 500 CAPE-implied rate, and the 3.8% dividend yield is fully covered by FCF. The normalized 10-year P/E of 4.1 suggests the current multiple is elevated relative to history, but the absolute valuation is still single-digit.

Ten insider buys over the last six months added 167,850 net shares, a 100% buy-side skew. CEO Mark Lazarus purchased shares on July 30, the most recent Form 4 filing. The company raised guidance during Q2 and the stock jumped 12% on the announcement, yet still trades 33% below its 52-week high.

Revenue fell 5.3% year-over-year, the second-worst decline on this screen, and the 56% gross margin is mid-tier for media. The EV/EBITDA of 3.3 is the second-lowest multiple in the top eight, reflecting either deep value or structural headwinds the market expects to persist.