Berkshire Hills Bancorp(BHLB) ZACKS·2025-03-10 15:00Market Overview - The U.S. share market experienced volatility on March 7, 2025, with most stock indices closing slightly positive despite concerns over President Trump's tariff policies and a weaker-than-expected jobs report [1] - Federal Reserve Chair Jerome Powell's statement about the economy being in good shape provided some optimism among investors [1] Investment Recommendations - In the current volatile market, it is suggested that investors consider low-leverage stocks as safer investment options [2] - Recommended stocks include BioLife Solutions (BLFS), Berkshire Hills Corporation (BHLB), NVIDIA (NVDA), The Greenbrier Companies (GBX), and EZCORP (EZPW) due to their low leverage [2] Understanding Leverage - Leverage refers to the practice of companies borrowing capital to operate and expand, typically through debt financing [4] - Excessive debt financing can lead to significant losses, making it crucial for investors to avoid companies with high debt levels [5] 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] - Companies with high debt-to-equity ratios may face challenges during economic downturns, despite strong earnings growth [8] Stock Selection Criteria - Stocks should have a debt-to-equity ratio lower than the industry median, a current price of at least 746 million [13] - Berkshire Hills Bancorp (BHLB): Achieved a 28% year-over-year increase in operating EPS and a 37.7% growth in total net revenues [14] - NVIDIA (NVDA): Experienced a 78% year-over-year revenue increase and a 71% rise in adjusted EPS [15] - The Greenbrier Companies (GBX): Reported net earnings of 876 million, with an operating margin of 12.8% [17] - EZCORP: Announced a 14% year-over-year increase in adjusted net income and a 7% rise in revenues [19]