4 Stocks That Boast an Attractive Interest Coverage Ratio

Core Insights - The article emphasizes the importance of analyzing a company's financial health beyond just sales and earnings figures for sustainable investment growth [1][2] Financial Analysis - A critical analysis of a company's financial background is essential for informed investment decisions, with coverage ratios being a key focus [2] - The Interest Coverage Ratio is highlighted as a crucial indicator of a company's ability to meet interest obligations from operating earnings [3][4] - A higher Interest Coverage Ratio indicates a stronger financial position, while a ratio below 1.0 suggests potential default risks [7] Company Examples - Brinker International, Inc. (EAT) has a Zacks Rank 1 and a VGM Score of B, with a trailing four-quarter earnings surprise of 24.7% on average [12] - Ralph Lauren Corporation (RL) holds a Zacks Rank 2 and a VGM Score of A, with a trailing four-quarter earnings surprise of 6.5% on average [13] - Sterling Infrastructure, Inc. (STRL) also carries a Zacks Rank 2 and a VGM Score of A, with a trailing four-quarter earnings surprise of 16.2% on average [15] - Deckers Outdoor Corporation (DECK) has a Zacks Rank 2 and a VGM Score of A, with a trailing four-quarter earnings surprise of 36.8% on average [16] Growth Projections - The Zacks Consensus Estimate for Brinker International indicates sales growth of 18.7% and EPS growth of 102.4% from the previous year [13] - Ralph Lauren's sales and EPS are projected to grow by 5.8% and 16.5%, respectively, from the year-ago period [14] - Sterling Infrastructure's EPS is expected to grow by 20.5% from a year ago [15] - Deckers is projected to see sales and EPS growth of 15.6% and 21%, respectively, from the previous year [16]