5 Low Leverage Stocks to Buy With CPI Data Expected to Show Hike

Market Overview - Major U.S. stock indices declined on March 11 due to investor skepticism regarding the upcoming consumer price index (CPI) data set to be released on March 12, with expectations of an increase in CPI between January and February 2024, raising inflation concerns for investors [1] Investment Strategy - In the current market environment, it is suggested that investors consider low-leverage stocks as safer investment options to mitigate potential losses during economic downturns [1][2] - Leverage is defined as the practice of borrowing capital for operations and expansion, primarily through debt financing, which can pose risks if the returns do not exceed the interest costs [2] Stock Selection Criteria - The debt-to-equity ratio is a key metric used to assess a company's financial risk, with a lower ratio indicating better solvency [4] - A prudent investment strategy involves selecting stocks with a low debt-to-equity ratio to ensure steady returns, while also considering additional factors beyond just this ratio [5] Additional Screening Parameters - Stocks should have a debt-to-equity ratio lower than the industry median, a current price of at least $10, and an average 20-day trading volume of 50,000 or more [6][7] - Earnings growth expectations should be greater than 5%, and stocks should have a VGM Score of A or B, along with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) for optimal upside potential [7] Recommended Stocks - Freshpet (FRPT): Reported Q4 2023 net sales of $215.4 million, a 29.9% year-over-year increase, with a four-quarter average earnings surprise of 61.83% and a Zacks Rank of 2 [8] - AptarGroup (ATR): Engaged in a partnership with Biogen for digital health solutions, with a long-term earnings growth rate of 7% and a Zacks Rank of 2 [9] - Manulife Financial (MFC): Increased its quarterly dividend by 9.6%, with a long-term earnings growth rate of 10% and a Zacks Rank of 2 [10] - Hawkins (HWKN): Recently acquired Industrial Research Corporation, with a four-quarter average earnings surprise of 30.56% and a Zacks Rank of 2 [11] - Americold Realty Trust (COLD): Reported a 7.9% growth in NOI on a constant currency basis, with a long-term earnings growth rate of 8.9% and a Zacks Rank of 2 [12]