5 Low-Leverage Stocks to Buy as Inflation Data Entices Investors

Zacks12-23 21:24

The majority of U.S. stock indices bounced back to the green zone on Dec. 20, after suffering from heavy sell-offs in the earlier part of last week, as investors cheered lower-than-expected inflation ...

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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 as Inflation Data Entices Investors\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-23 21:24 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/5-low-leverage-stocks-buy-132400359.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The majority of U.S. stock indices bounced back to the green zone on Dec. 20, after suffering from heavy sell-offs in the earlier part of last week, as investors cheered lower-than-expected inflation ...</p>\n\n<a href=\"https://finance.yahoo.com/news/5-low-leverage-stocks-buy-132400359.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":"FRPT","symbol_name":"Freshpet","start_time":0,"source_url":"https://finance.yahoo.com/news/5-low-leverage-stocks-buy-132400359.html","article_id":"2493876929","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/nVZbmAfTnVsKhOp4tiYeJw--~B/aD02MDA7dz05MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/b5a65fa858bdba9ae21498c7eb062c70"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2493876929","pubTimestamp":1734960240,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The majority of U.S. stock indices bounced back to the green zone on Dec. 20, after suffering from heavy sell-offs in the earlier part of last week, as investors cheered lower-than-expected inflation data. Notably, America’s latest Personal Consumption Expenditures  index data showed price increases decelerating in November from October and were also lower than the market’s expectation.In such a situation, an investor might rush to invest in the stock market. However, keeping in mind the volatile situation of the world economy lately, it is advisable to choose stocks that come with low leverage, thereby carrying less risk during periods of uncertainty. To this end, we recommend stocks like Fox Corp. FOX, Comfort Systems USA FIX, REV Group REVG, Freshpet Inc. FRPT and Sterling Infrastructure Inc. STRL. These stocks bear low leverage and, therefore, 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, seve","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"FRPT":"Freshpet","BK4212":"包装食品与肉类","REVG":"Rev Group Inc.","ISBC":"投资者银行","BK4129":"建筑与工程","BK4567":"ESG概念","LU0128526141.USD":"TEMPLETON GLOBAL SMALLER COMPANIES \"A\" ACC","BK4585":"ETF&股票定投概念","LU0054578231.USD":"BGF SYSTEMATIC SUSTAINABLE GLOBAL SMALLCAP \"A2\" (USD) ACC","FIX":"美国舒适系统","LU0266013472.USD":"AXA WF - Framlington Longevity Economy A Cap USD","BK4211":"区域性银行","STRL":"Sterling Construction Company In","BK4149":"建筑机械与重型卡车","LU1941712348.USD":"ALLIANZ PET AND ANIMAL WELLBEING \"AT\" (USD) ACC","BK4588":"碎股","LU1941712264.USD":"ALLIANZ PET AND ANIMAL WELLBEING \"A\" (USD) INC","LU0053671581.USD":"摩根大通美国小盘成长股 A(dist)","BK4125":"广播","LU2065731478.USD":"ALLSPRING (LUX) WORLDWIDE FUND - SMALL CAP INNOVA \"I\" (USD) ACC","LU0029874061.USD":"TEMPLETON GLOBAL SMALLER COMPANIES \"A\" YDIS INC","FOXA":"福克斯-A","FOX":"福克斯-B"},"translate_title":"通胀数据吸引投资者时值得买入的5只低杠杆股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FRPT":1,"STRL":1,"REVG":1,"ISBC":1,"FOX":1,"FIX":1,"FOXA":0.9},"content_text":"The majority of U.S. stock indices bounced back to the green zone on Dec. 20, after suffering from heavy sell-offs in the earlier part of last week, as investors cheered lower-than-expected inflation data. Notably, America’s latest Personal Consumption Expenditures (PCE) index data showed price increases decelerating in November from October and were also lower than the market’s expectation. \nIn such a situation, an investor might rush to invest in the stock market. However, keeping in mind the volatile situation of the world economy lately, it is advisable to choose stocks that come with low leverage, thereby carrying less risk during periods of uncertainty. To this end, we recommend stocks like Fox Corp. FOX, Comfort Systems USA FIX, REV Group REVG, Freshpet Inc. FRPT and Sterling Infrastructure Inc. STRL. These stocks bear low leverage and, therefore, 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 third-quarter earnings season 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 15 stocks that made it through the screen.\nFOX: It produces and distributes news, sports and entertainment content. On Nov. 4, 2024, Fox Corp. released its first-quarter fiscal 2025 results. The company reported revenues of $3.56 billion, which reflected an increase of 11% year over year. Adjusted earnings per share rose 33%. \nThe company boasts a long-term earnings growth rate of 7.1%. The Zacks Consensus Estimate for FOX’s fiscal 2025 sales suggests a 6.7% improvement from the fiscal 2024 actuals. It currently has a Zacks Rank #2. \nComfort Systems: It is a provider of comprehensive heating, ventilation and air conditioning installation, maintenance, repair and replacement services. On Oct. 24, 2024, Comfort Systems reported its third-quarter 2024 results. Its revenues improved 31.5% year over year to $1.81 billion, while earnings grew 40% in the third quarter. \nThe Zacks Consensus Estimate for FIX’s 2024 earnings suggests a 59.7% improvement from the 2023 reported number. The Zacks Consensus Estimate for its 2024 sales suggests a 32.8% improvement from the 2023 reported number. It currently carries a Zacks Rank #2. \nREV Group: It designs, manufactures and distributes specialty vehicles, and related aftermarket parts and services. On Dec. 11, 2024, REV Group announced its fourth-quarter and full-year fiscal 2024 results. The company’s fiscal fourth quarter net income came in at 80 cents per share, up from 50 cents recorded in the prior fiscal’s fourth quarter. REV also increased its quarterly cash dividend by 20%.\nIt delivered a four-quarter average earnings surprise of 57.04%. The Zacks Consensus Estimate for REVG’s fiscal 2025 sales implies an improvement of 7.6% from the fiscal 2024 actuals. It currently sports a Zacks Rank #1. \nFreshpet: It manufactures and markets natural fresh foods, refrigerated meals and treats for dogs and cats in the United States and Canada. On Nov 4, 2024, Freshpet announced its third-quarter 2024 results. Its sales grew 26.3% year over to $253.4 million in the third quarter. FRPT’s net income of $11.9 million for the third quarter of 2024 improved from a net loss of $7.2 million in the prior year period.  \nIt delivered a four-quarter average earnings surprise of 144.50%. The Zacks Consensus Estimate for FRPT’s 2024 sales implies an improvement of 27.2% from the 2023 actuals. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.\nSterling Infrastructure: It is one of the largest specialty site development companies serving large, blue-chip customers in the e-commerce, data center, distribution center, warehousing, and energy sectors. On Nov 6, 2024, the company released its third-quarter 2024 results. The company’s third-quarter revenues of $593.7 million reflected a year-over-year improvement of 6%, while earnings of $1.97 per share grew 56%. \nSTRL currently sports a Zacks Rank #1. The company boasts a long-term earnings growth rate of 15%. The Zacks Consensus Estimate for STRL’s 2024 sales suggests a 9% 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\nFreshpet, Inc. (FRPT) : Free Stock Analysis Report\nComfort Systems USA, Inc. (FIX) : Free Stock Analysis Report\nSterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report\nFox Corporation (FOX) : Free Stock Analysis Report\nREV Group, Inc. (REVG) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"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":"4.29.3","shortVersion":"4.29.3","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/2493876929"}