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5 Low-Leverage Stocks to Add to Your Portfolio as U.S. Inflation Eases
ASML HoldingASML Holding(US:ASML) ZACKSยท2025-04-14 17:30

Market Overview - The majority of U.S. stock indices ended the week positively, with a notable rise on April 11, 2025, as investor concerns regarding the U.S.-China trade war eased [1] - Producer price data indicating a decline in wholesale inflation for March contributed to investor optimism, reflected in rising share prices [1] Investment Strategy - Investors are encouraged to consider low-leverage stocks to mitigate risks during market volatility [2][6] - Low-leverage stocks are defined as those with a debt-to-equity ratio lower than their industry peers, which indicates reduced financial risk [9][11] Leverage and Financial Metrics - Leverage refers to the practice of borrowing capital for operations and expansion, primarily through debt financing [4] - Excessive debt financing can lead to significant losses, making it crucial for investors to select companies with lower debt levels [5][6] - The debt-to-equity ratio is a key metric for assessing a company's financial risk, with a lower ratio indicating better solvency [7] Stock Picks - Bilibili (BILI): An online entertainment platform in China, with a projected 11% sales improvement for 2025 and a Zacks Rank of 2 [13][14] - Willdan Group (WLDN): Provides consulting services and has secured a $30 million contract for energy modernization, with a 13.2% earnings improvement forecast for 2025 and a Zacks Rank of 1 [15][16] - Sterling Infrastructure (STRL): Focuses on E-Infrastructure and has a long-term earnings growth rate of 15%, with a 34.6% earnings improvement expected for 2025 and a Zacks Rank of 1 [17][18] - ASML Holding (ASML): A leading semiconductor technology manufacturer, with an 18% long-term earnings growth rate and a 14.1% sales improvement forecast for 2025, holding a Zacks Rank of 2 [19][20] - Leonardo DRS (DRS): Develops defense products, with a long-term earnings growth rate of 14.6% and an 8.4% sales improvement expected for 2025, currently holding a Zacks Rank of 1 [20][21]