Bet on These 5 Low-Leverage Stocks as Middle East Conflict Goes On

Market Overview - Wall Street ended March 19, 2026, on a weak note, with all three major U.S. indices falling below their respective 200-day moving averages, leading to accelerated equity sell-offs due to surging oil prices and a hawkish Fed signaling only one rate cut this year [1][2] Low-Leverage Stocks - Investors are likely to seek safe bets rather than high-beta growth-oriented stocks, emphasizing the importance of low-leverage stocks, which are better equipped to handle interest rate volatility and geopolitical shocks [2][6] - Low-leverage stocks are defined as companies with minimal debt relative to equity, providing a solid foothold as the market faces a potential energy-driven slowdown [2][5] Recommended Low-Leverage Stocks - Recommended low-leverage stocks include: - Nu Holdings (NU): Serves 131 million customers and is expanding through partnerships with major sports teams [10][15] - Casey's General Stores (CASY): Reported a 4% increase in same-store sales and a 49.8% surge in EPS [17][18] - Astec Industries (ASTE): Launched a rebuild and repair program for road construction equipment, with a 13% revenue improvement expected [19][20] - HNI Corp. (HNI): Achieved a 38.3% year-over-year increase in net sales [20][21] - Blue Bird (BLBD): Acquired full ownership of Micro Bird joint venture for approximately $200 million [22][23] Financial Metrics and Screening Criteria - The debt-to-equity ratio is a key metric for assessing financial risk, with a lower ratio indicating improved solvency [7][11] - Additional screening criteria for selecting low-leverage stocks include: - Debt/Equity less than industry median - Current price greater than or equal to $10 - Average 20-day volume greater than or equal to 50,000 - Percentage change in EPS greater than industry median - VGM Score of A or B combined with Zacks Rank 1 or 2 for better upside potential [12][13][14]