Buy These 5 Low-Leverage Stocks Amid Fresh Iran-Israel War

Market Overview - All three major U.S. stock market indices fell by more than 1% on June 13 due to missile strikes between Israel and Iran, impacting global stock markets negatively [1] - Investors are concerned that these geopolitical tensions could lead to increased oil prices and upward pressure on global commodity prices [1] Investment Recommendations - Suggested low-leverage stocks for safeguarding portfolios during market turmoil include Novartis (NVS), The Ensign Group (ENSG), MasTec (MTZ), Bilibili (BILI), and Sterling Infrastructure, Inc. (STRL) [2][10] - These stocks are characterized by low leverage, making them potentially safer options for investors [2][10] Understanding Leverage - Leverage refers to the practice of borrowing capital for operations and expansion, typically through debt financing [4] - Excessive debt financing can lead to significant losses, hence the importance of selecting companies with low debt levels [5][6] Debt-to-Equity Ratio Analysis - The debt-to-equity ratio is a key metric indicating a company's financial risk, with a lower ratio reflecting better solvency [7] - High debt-to-equity ratios can turn favorable earnings into losses during economic downturns [8] Stock Selection Strategy - A prudent investment strategy involves choosing stocks with low debt-to-equity ratios to ensure steady returns [9] - Additional screening criteria include being less leveraged than industry peers, trading at a minimum price of $10, having substantial trading volume, and showing positive earnings growth expectations [12][13] Company Highlights - Novartis (NVS): Reported a 7.1% improvement in 2025 sales estimates and has a long-term earnings growth rate of 7.9%, currently holding a Zacks Rank 2 [15][16] - The Ensign Group (ENSG): Anticipates a 15% year-over-year sales improvement in 2025, with a long-term earnings growth rate of 15% and a Zacks Rank 2 [17][18] - MasTec (MTZ): Achieved a 6% year-over-year revenue increase and expects an 11% sales improvement in 2025, with a significant earnings growth estimate of 53.7% [19] - Bilibili (BILI): Experienced a 24% revenue increase year-over-year and anticipates an 11.3% sales improvement in 2025, with a Zacks Rank 2 [20] - Sterling Infrastructure (STRL): Reported a 7% revenue increase and a 29% surge in adjusted earnings per share, with a long-term earnings growth rate of 15% [21][22]