Investors are preparing for a gloomy 2023 by doubling down on cash-rich companies . "We prefer companies generating cash rather than those that need capital to grow. Not only are rates likely to remain higher than they have been in recent past, but we are likely exiting an era of hyper-accommodative monetary policy," Bank of America said in a Jan. 16 note. The higher the free cash flow yield, the better a company's position to meet its debt obligations.
-listed Chesapeake Energy Corporation was the only energy stock to appear on the screen, with its free cash flow yield at nearly 14%. Analysts gave it a 53.7% upside, and the majority gave it a "buy" rating. The stock, like most energy firms, did well in the past year — already climbing around 40%. Last week the firm announced that it had agreed to sell part of its operations in south Texas for $1.43 billion in cash.