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With the Federal Reserve openly weighing a larger interest rate hike if inflation stays sticky, investors are again reminded that borrowing is never guaranteed to stay cheap. Higher rates can punish companies that rely heavily on debt, yet they can also leave some cash generative businesses overlooked and mispriced. This article walks through three stocks where strong cash flow potential meets a discounted valuation, based on Simply Wall St's intrinsic value work. The three stocks covered below are just a starter set. The full Simply Wall St screen has surfaced 91 more businesses with cash flow stories that look just as compelling on its intrinsic value work.
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