Buy These 5 Low-Leverage Stocks to Counter Market Volatility

Core Viewpoint - The article discusses the current state of the stock market, highlighting the positive performance of major indices due to strong earnings expectations from tech companies, while also emphasizing the importance of investing in low-leverage stocks to mitigate risks during market volatility [1][2]. Group 1: Market Overview - All three major stock indices of Wall Street ended positively on April 24, driven by better-than-expected earnings anticipation from tech giants like Alphabet and Intel [1]. - Investors remain cautious due to recent tariff announcements by U.S. President Trump, which have caused volatility in the global stock market [1][2]. Group 2: Investment Strategy - Investors are advised to focus on low-leverage stocks to minimize risks during market downturns [2][6]. - Low-leverage stocks are characterized by lower debt-to-equity ratios, which indicate improved solvency and reduced financial risk [7][9]. Group 3: Stock Selection Criteria - The article outlines specific criteria for selecting low-leverage stocks, including: - Debt/Equity less than the industry median [11]. - Current price of at least $10 [11]. - Average 20-day volume of at least 50,000 shares [11]. - Positive earnings growth compared to the industry median [11]. - VGM Score of A or B combined with a Zacks Rank of 1 or 2 [12]. - Estimated one-year EPS growth greater than 5% [12]. Group 4: Company Highlights - Bilibili (BILI): Reported 104 million daily active users in 2024, with a projected 11% sales improvement for 2025 and a Zacks Rank of 2 [13][14]. - Kingstone Companies (KINS): Announced a $70 million agreement to provide replacement policies in New York, with a projected 37.9% sales improvement for 2025 and a Zacks Rank of 1 [15]. - Engie S.A. (ENGIY): Secured a 10-year extension for nuclear reactors, leading to a projected 19.6% earnings improvement for 2025 and a Zacks Rank of 1 [16]. - ASML Holding (ASML): Achieved a 46.3% year-over-year increase in net sales and a 92.9% increase in earnings per share, with a projected 21.5% sales improvement for 2025 and a Zacks Rank of 2 [17][18]. - Resmed (RMD): Reported an 8% revenue increase and a 13% surge in adjusted net income, with a projected 9% sales improvement for fiscal 2025 and a Zacks Rank of 2 [19].