Buy These 5 Low-Leverage Stocks as Market Touches New Record High
AlcoaAlcoa(US:AA) ZACKS·2025-10-28 14:16

Market Overview - The U.S. stock market experienced a rally, with all three major indices reaching new record highs, driven by optimism surrounding the upcoming Trump-Xi meeting and positive trade truce expectations [1][10] - The positive sentiment was further supported by cooler-than-expected inflation data and anticipated strong quarterly results from major tech stocks [1][10] Investment Recommendations - Investors are encouraged to consider low-leverage stocks such as NatWest Group, CBOE Global Markets, Alcoa Corp., Safran SA, and Casey's General Stores, which are expected to provide a protective cushion against economic downturns [2][10] - These companies have demonstrated earnings growth momentum and solid rankings, indicating resilience amid market volatility [10] Company Highlights - NatWest Group: Recently announced a minority investment in JS Group to enhance financial accessibility through technology. The Zacks Consensus Estimate for its 2025 earnings has improved by 7.5%, with a long-term earnings growth rate of 12.2% [15][16] - CBOE Global Markets: Reported record trading volumes in September, with an average daily volume of 20.5 million. The Zacks Consensus Estimate for its 2025 sales suggests a 10.8% improvement year-over-year, with a long-term earnings growth rate of 14.8% [17][18] - Alcoa Corp.: Reported a 3.1% year-over-year revenue growth, with alumina production increasing by 4% to 2.5 million metric tons. The Zacks Consensus Estimate for its 2025 sales indicates a 6.3% improvement, with a long-term earnings growth rate of 51.9% [18][19] - Safran: Achieved an 18.3% year-over-year revenue increase in Q3, driven by growth across its divisions. The Zacks Consensus Estimate for its 2025 sales suggests a 40.4% improvement, with a long-term earnings growth rate of 20.9% [19][20] - Casey's General Stores: Reported a 4.3% increase in same-store sales and a 19.5% growth in earnings for Q1 fiscal 2026. The Zacks Consensus Estimate for its fiscal 2026 sales indicates a 9.6% improvement [21][22]