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

Group 1 - The majority of U.S. stock indices rebounded on December 20, following heavy selloffs earlier in the week, driven by lower-than-expected inflation data [1] - The Personal Consumption Expenditures (PCE) index data indicated a deceleration in price increases in November compared to October, which was also below market expectations [1] Group 2 - The importance of selecting low-leverage stocks is emphasized, as companies with high debt-to-equity ratios may face significant risks during economic downturns [4][10] - A comprehensive screening strategy for low-leverage stocks includes criteria such as a minimum stock price of $10, a VGM Score of A or B, and a Zacks Rank of 1 or 2 [6][7][30] - Recommended low-leverage stocks include Fox Corp. (FOX), Comfort Systems USA (FIX), REV Group (REVG), Freshpet Inc. (FRPT), and Sterling Infrastructure Inc. (STRL) [8] Group 3 - Fox Corp. reported revenues of $3.56 billion for fiscal Q1 2025, an 11% year-over-year increase, with adjusted earnings per share rising by 33% [31] - Comfort Systems USA's revenues improved by 31.5% year-over-year to $1.81 billion, with earnings growing by 40% in Q3 2024 [32] - REV Group's fiscal Q4 net income increased to $0.80 per share from $0.50 in the previous year, and the company raised its quarterly cash dividend by 20% [33] - Freshpet's sales grew by 26.3% year-over-year to $253.4 million in Q3 2024, with net income improving from a loss of $7.2 million to $11.9 million [34] - Sterling Infrastructure's Q3 revenues reached $593.7 million, reflecting a 6% year-over-year improvement, while earnings per share grew by 56% [35]