5 Low-Leverage Stocks to Buy on an Optimistic Fed Minutes Report

Zacks08-22

Major U.S. stock indices witnessed an upside on Aug 21, reflecting investors’ optimism about a possible rate cut expected in the next Fed meeting. Notably, the Fed minutes of the July 2024 meeting, ...

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Notably, the Fed minutes of the July 2024 meeting, ...</p>\n\n<a href=\"https://finance.yahoo.com/news/5-low-leverage-stocks-buy-132800816.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>5 Low-Leverage Stocks to Buy on an Optimistic Fed Minutes Report</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n5 Low-Leverage Stocks to Buy on an Optimistic Fed Minutes Report\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-22 21:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/5-low-leverage-stocks-buy-132800816.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Major U.S. stock indices witnessed an upside on Aug 21, reflecting investors’ optimism about a possible rate cut expected in the next Fed meeting. Notably, the Fed minutes of the July 2024 meeting, ...</p>\n\n<a href=\"https://finance.yahoo.com/news/5-low-leverage-stocks-buy-132800816.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"KTOS","symbol_name":"克瑞拓斯安全防卫","start_time":0,"source_url":"https://finance.yahoo.com/news/5-low-leverage-stocks-buy-132800816.html","article_id":"2461534106","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/y5TzmBu._qjnoh6epibnpw--~B/aD00MTM7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/1ead67f84e2ab1bfbbddb39ffee0b50f"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2461534106","pubTimestamp":1724333280,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Major U.S. stock indices witnessed an upside on Aug 21, reflecting investors’ optimism about a possible rate cut expected in the next Fed meeting. Notably, the Fed minutes of the July 2024 meeting, published yesterday, indicate that the Federal Reserve has moved closer to a long-awaited interest rate reduction.This might lure investors into rushing to buy some stocks, with hopes for future growth seeming bright. However, keeping in mind the volatile situation of the world economy lately, it is advisable to choose stocks that come with low leverage, thereby offering less risk during periods of uncertainty. In this regard, we recommend stocks like Vital Farms VITL, PulteGroup PHM, Hamilton Insurance Group HG, The Greenbrier Companies GBX and Kratos Defense & Security Solutions KTOS. These stocks bear low leverage and, thereby, should be a safer option for investors if they don’t want to lose big in times of market turmoil.To identify such stocks, historically, several leverage ratios hav","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"KTOS":"克瑞拓斯安全防卫","BK4187":"航天航空与国防","BK4212":"包装食品与肉类","BK4088":"住宅建筑","BK4149":"建筑机械与重型卡车","PHM":"普得集团","LU1699723380.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"AP\" (USD) ACC","HG":"Hamilton Insurance Group, Ltd.","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4585":"ETF&股票定投概念","BK4107":"财产与意外伤害保险","GBX":"格林布赖尔","BK4588":"碎股","VITL":"Vital Farms, Inc."},"translate_title":"乐观的美联储会议纪要报告值得买入的5只低杠杆股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VITL":1,"US7Y.BOND":1,"US6M.BOND":1,"US5Y.BOND":1,"US3Y.BOND":1,"US30Y.BOND":1,"US2Y.BOND":1,"GBX":1,"HG":1,"KTOS":1,"US12M.BOND":1,"US10Y.BOND":1,"PHM":0.9},"content_text":"Major U.S. stock indices witnessed an upside on Aug 21, reflecting investors’ optimism about a possible rate cut expected in the next Fed meeting. Notably, the Fed minutes of the July 2024 meeting, published yesterday, indicate that the Federal Reserve has moved closer to a long-awaited interest rate reduction.\nThis might lure investors into rushing to buy some stocks, with hopes for future growth seeming bright. However, keeping in mind the volatile situation of the world economy lately, it is advisable to choose stocks that come with low leverage, thereby offering less risk during periods of uncertainty. In this regard, we recommend stocks like Vital Farms VITL, PulteGroup PHM, Hamilton Insurance Group HG, The Greenbrier Companies GBX and Kratos Defense & Security Solutions KTOS. These stocks bear low leverage and, thereby, should be a safer option for investors if they don’t want to lose big in times of market turmoil.  \nNow, before selecting low-leverage stocks, let’s explore what leverage is and how choosing a low-leverage stock helps investors.\nWhat’s the Significance of Low Leverage Stocks?\nIn finance, leverage is a term used to denote the practice of borrowing capital by companies to run their operations smoothly and expand the same. Such borrowings are done through debt financing. But there remains an option for equity finance. This is probably due to the cheap and easy availability of debt over equity financing.\nHowever, debt financing has its share of drawbacks. Particularly, it is desirable only as long as it successfully generates a higher rate of return compared to the interest rate. So, to avoid considerable losses in your portfolio, one should always avoid companies that resort to excessive debt financing.\nThe crux of safe investment lies in choosing a company that is not burdened with debt, as a debt-free stock is almost impossible to find.\nThe equity market can be volatile at times, and, as an investor, if you don’t want to lose big time, we suggest you invest in stocks that bear low leverage and are, hence, less risky.\nTo identify such stocks, historically, several leverage ratios have been developed to measure the amount of debt a company bears. The debt-to-equity ratio is one of the most common ratios.\nAnalyzing Debt/Equity\nDebt-to-Equity Ratio = Total Liabilities/Shareholders’ Equity\nThis metric is a liquidity ratio that indicates the amount of financial risk a company bears. A lower debt-to-equity ratio reflects improved solvency for a company.\nWith the second-quarter earnings season mostly behind us, investors must be eyeing stocks that have exhibited solid earnings growth in the recent past. But if a stock bears a high debt-to-equity ratio in times of economic downturn, its so-called booming earnings picture might turn into a nightmare.\nThe Winning Strategy\nConsidering the factors above, it is prudent to choose stocks with a low debt-to-equity ratio to ensure steady returns.\nYet, an investment strategy based solely on the debt-to-equity ratio might not fetch the desired outcome. To choose stocks that have the potential to give you steady returns, we have expanded our screening criteria to include some other factors.\nHere are the other parameters:\nDebt/Equity less than X-Industry Median: Stocks that are less leveraged than their industry peers.\nCurrent Price greater than or equal to 10: The stocks must be trading at a minimum of $10 or above.\nAverage 20-day Volume greater than or equal to 50000: A substantial trading volume ensures that the stock is easily tradable.\nPercentage Change in EPS F(0)/F(-1) greater than X-Industry Median: Earnings growth adds to optimism, leading to a stock’s price appreciation.\nVGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.\nEstimated One-Year EPS Growth F(1)/F(0) greater than 5: This shows earnings growth expectation.\nZacks Rank #1 or 2: Irrespective of market conditions, stocks with a Zacks Rank #1 or 2 have a proven history of success.\nExcluding stocks that have a negative or a zero debt-to-equity ratio, here we present our five picks out of the 11 stocks that made it through the screen.\nVital Farms: The company offers a range of produced pasture-raised foods, which include shell eggs, butter, hard-boiled eggs, ghee and liquid whole eggs. On Aug 8, 2024, Vital Farms announced its second-quarter 2024 results. Its net revenues improved a solid 38.5% from the prior year quarter’s reported figure, while earnings surged 140%. \nVITL delivered an average four-quarter earnings surprise of 82.46%. It currently carries a Zacks Rank #2. The Zacks Consensus Estimate for VITL’s 2024 sales suggests a 26.3% improvement from the 2023 reported figure.\nPulteGroup: It engages in homebuilding and financial services businesses, primarily in the United States.  On Jul 7, 2024, PulteGroup announced its second-quarter 2024 results. Its net revenues rose 9.8% year over year in the second quarter, while earnings improved a solid 19%.  \nPHM currently holds a Zacks Rank #2. The company boasts a long-term earnings growth rate of 19%. The Zacks Consensus Estimate for PHM’s 2024 sales suggests an 8.5% improvement from the 2023 reported actuals.\nHamilton Insurance Group: It underwrites specialty insurance and reinsurance risks principally in Bermuda. On Aug 7, 2024, Hamilton Insurance announced its second-quarter 2024 results. Its gross premiums written increased 19.5% year over year in the last reported quarter, while net premiums earned rose 26.3%. \nThe company boasts a four-quarter average earnings surprise of 53.80%. The Zacks Consensus Estimate for HG’s 2024 sales implies an increase of 48.2% from 2023 sales. HG currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.\nThe Greenbrier Company: It is a leading supplier of transportation equipment and services to the railroad and related industries. On Jul 8, 2024, the company reported its third-quarter fiscal 2024 results. Its lease fleet increased by 600 units. GBX’s diverse new railcar orders resulted in new railcar backlog of 29,400 units with an estimated value of $3.7 billion. \nGBX currently carries a Zacks Rank #2. The stock has an average four-quarter earnings surprise of 15%. It has a long-term earnings growth rate of 18.7%.\nKratos Defense: It offers high-performance, jet-powered, unmanned aerial target drone systems that are designed to replicate state-of-the-art adversarial fighter aircraft, missiles and other threats. The company also specializes in space and satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, C5ISR, training and combat systems. On Aug 7, 2024, Kratos Defense announced its second-quarter 2024 results. Its earnings surged 55.6% year over year, while revenues rose 16.8%. \nKTOS currently holds a Zacks Rank #2. The company has a four-quarter average earnings surprise of 73.75%. The Zacks Consensus Estimate for KTOS’ 2024 sales suggests a 10.7% improvement from the 2023 reported figure.\nYou can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your trading. Further, you can also create your strategies and backtest them first before taking the investment plunge.\nThe Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.\nClick here to sign up for a free trial to the Research Wizard today.\nDisclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.\nDisclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nPulteGroup, Inc. (PHM) : Free Stock Analysis Report\nGreenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report\nKratos Defense & Security Solutions, Inc. (KTOS) : Free Stock Analysis Report\nVital Farms, Inc. (VITL) : Free Stock Analysis Report\nHamilton Insurance Group, Ltd. (HG) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.26.4","shortVersion":"4.26.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2461534106"}