Buy These 5 Low-Leverage Stocks Amid Tariff-Induced Uncertainty

Core Insights - Major U.S. stock indices experienced a decline of nearly 1% on August 5, 2025, due to weaker-than-expected services data and ongoing tariff uncertainties, particularly with Trump threatening tariffs as high as 250% on pharmaceuticals [1][10] - Despite market volatility, low-leverage stocks are highlighted as safer investment options during economic uncertainty, with specific companies recommended for their strong earnings growth and low debt levels [2][10] Market Overview - The U.S. stock market is currently facing challenges due to tariff-related uncertainties and weaker economic data, leading to a lack of confidence among investors [2][10] - The recent wave of corporate earnings that exceeded estimates has been overshadowed by tariff concerns, impacting overall market optimism [1] Investment Strategy - Investors are advised to consider low-leverage stocks as a protective measure against potential economic downturns, with a focus on companies that exhibit solid earnings growth and lower debt-to-equity ratios [6][9] - The debt-to-equity ratio is emphasized as a critical metric for assessing financial risk, with lower ratios indicating better solvency [7][9] Recommended Low-Leverage Stocks - NatWest Group (NWG): Collaborating with Google Cloud to enhance growth, with a projected 20.1% sales improvement for 2025 and a long-term earnings growth rate of 10.9% [15][16] - Zions Bancorporation (ZION): Reported a 9% year-over-year increase in net interest income, with a 5% expected earnings growth for 2025 [17][18] - Luxfer Holdings (LXFR): Achieved a 5.8% increase in adjusted net sales and a 25% rise in adjusted earnings per share, with a long-term earnings growth rate of 8% [19][20] - Kingstone Companies (KINS): Declared a quarterly cash dividend, indicating strong financial health, with a projected 37.9% improvement in both sales and earnings for 2025 [21][22] - Ingredion Inc. (INGR): Reported a 1% increase in adjusted operating income, with a long-term earnings growth rate of 11% and a 1% sales improvement expected for 2025 [23][24]