Berkshire Hills Bancorp(BHLB) ZACKS·2025-02-04 15:36Core Viewpoint - The U.S. equities market experienced a decline due to concerns over recent tariff impositions by Trump, which may impact the profitability of many U.S. companies engaged in global trade [1] Group 1: Investment Recommendations - In the current market environment, it is suggested that investors consider low-leverage stocks as safer investment options to mitigate potential losses [2] - Recommended stocks include Berkshire Hills Bancorp (BHLB), Sportradar Group (SRAD), Nextracker (NXT), The Greenbrier Companies (GBX), and Fox Corp. (FOX), all of which exhibit low leverage [2] Group 2: Understanding Leverage - Leverage refers to the practice of companies borrowing capital to operate and expand, typically through debt financing, which can be riskier than equity financing [4] - Excessive debt financing can lead to significant losses, making it crucial for investors to avoid companies with high debt levels [5] Group 3: Debt-to-Equity Ratio - The debt-to-equity ratio is a key metric used to assess a company's financial risk, with a lower ratio indicating better solvency [7] - During economic downturns, companies with high debt-to-equity ratios may face challenges despite previously strong earnings [8] Group 4: Screening Criteria for Stocks - A prudent investment strategy involves selecting stocks with a debt-to-equity ratio lower than the industry median, a current price of at least 4.5 billion and a 57.44% average earnings surprise over four quarters [17][18] - The Greenbrier Companies (GBX): Reported net earnings of $55 million with a long-term earnings growth rate of 11.7% [19][20] - Fox Corp. (FOX): Achieved a long-term earnings growth rate of 7.1% and a significant earnings surprise of 31.82% in the last quarter [20][21]