Market Overview - Wall Street experienced a decline on October 9, 2025, as major stock indices fell due to investor uncertainty regarding AI-led growth and recession fears, despite Delta Air Lines exceeding expectations [1][10] Investment Recommendations - Recommended low-leverage stocks include ResMed Inc. (RMD), Safran (SAFRY), Pentair (PNR), Casey's General Stores (CASY), and Leonardo DRS, Inc. (DRS), which are considered safer options during market volatility [2][10] Significance of Low-Leverage Stocks - Low-leverage stocks are preferred as they are less risky, especially in volatile markets, and are characterized by lower debt-to-equity ratios [4][6] Debt-to-Equity Ratio Analysis - The debt-to-equity ratio is a key metric indicating a company's financial risk, with lower ratios reflecting better solvency [7] Company Profiles - **ResMed**: Focuses on sleep-disordered breathing and respiratory disorders, with a projected revenue increase of 7.8% for 2025 and a long-term earnings growth rate of 13.8% [15][16] - **Safran**: Engaged in aerospace and defense, with a sales growth estimate of 36.3% for 2025, supported by a recent contract with Singapore Airlines [17][18] - **Pentair**: Provides sustainable water solutions, with a sales growth estimate of 1.5% for 2025 following a strategic acquisition for $290 million [19][20] - **Casey's General Stores**: Reports a 4.3% increase in same-store sales and a 19.5% growth in earnings, with a sales improvement estimate of 10.6% for fiscal 2026 [20][21] - **Leonardo DRS**: Develops advanced defense products, with a sales growth estimate of 10.9% for 2025 and a long-term earnings growth rate of 17.3% [22][23]

Core Insights - All three major U.S. stock indices rose on July 17, 2025, driven by positive retail sales data and a decline in unemployment claims [1][2][11] - Better-than-expected earnings from major tech companies like Netflix contributed to investor confidence [2] - The current market environment suggests a favorable outlook for investing in U.S. stocks, particularly in low-leverage companies [3] Economic Indicators - U.S. retail sales increased by 0.6% in June 2025, following a 0.9% decline in May, exceeding market expectations [1][11] - Labor data indicated a decline in unemployment claims, further supporting market optimism [1] Investment Recommendations - Recommended stocks include Novartis (NVS), ResMed Inc. (RMD), Wabtec (WAB), Elbit Systems (ESLT), and Ingredion Inc. (INGR), all of which are characterized by low leverage and strong earnings growth [3][11] - Each of these stocks holds a Zacks Rank 2, indicating a favorable investment outlook [11] Stock Analysis - Novartis reported a 12% year-over-year increase in net sales and a 29% improvement in earnings per share for Q2 2025 [15][16] - ResMed anticipates an 8.1% year-over-year increase in fiscal fourth-quarter sales, with a long-term earnings growth rate of 15.3% [17][18] - Wabtec's sales are expected to grow by 5.3% year-over-year, supported by a long-term earnings growth rate of 16% [19][20] - Elbit Systems forecasts a 13.8% increase in 2025 sales, with a four-quarter average earnings surprise of 21.12% [21] - Ingredion expects a 1% improvement in 2025 sales, with a long-term earnings growth rate of 11% [22][23]

Market Overview - The U.S. stock market displayed mixed signals on May 29, with the Nasdaq and S&P 500 gaining due to NVIDIA's strong quarterly results and a favorable ruling against Trump-imposed tariffs, while the Dow Jones declined amid economic outlook concerns and geopolitical uncertainties [1] Investment Strategy - In a volatile market, investors are advised to consider low-leverage stocks such as Novartis, ENGIE SA, MasTec, Dorman Products, and Sterling Infrastructure to mitigate potential losses [2] - Low-leverage stocks are preferred as they typically bear less financial risk, making them safer options during market turmoil [6][5] Understanding Leverage - Leverage refers to the practice of companies borrowing capital to operate and expand, primarily through debt financing, which can be risky if it does not yield returns exceeding the interest rate [4][5] - A lower debt-to-equity ratio indicates improved solvency and reduced financial risk for a company [7] Stock Selection Criteria - Stocks should have a debt-to-equity ratio lower than the industry median, a current price of at least $10, an average 20-day trading volume of 50,000 or more, and a percentage change in EPS greater than the industry median [11][12] - Additional criteria include a VGM Score of A or B, estimated one-year EPS growth greater than 5%, and a Zacks Rank of 1 or 2 [12] Company Highlights - **Novartis**: Launched a tender offer to acquire Regulus Therapeutics for $7.00 per share, potentially enhancing its RNA-targeted therapies pipeline. The Zacks Consensus Estimate for 2025 sales suggests a 7.1% improvement from 2024, with a long-term earnings growth rate of 7.9% [14][15] - **ENGIE SA**: Reported a 5.6% year-over-year revenue growth in Q1 2025 and has 8.5 GW of renewable and battery capacity under construction. The Zacks Consensus Estimate for 2025 earnings indicates a 22.9% year-over-year improvement [16][17] - **MasTec**: Announced a 6% year-over-year revenue increase in Q1 2025, with a Zacks Consensus Estimate for 2025 sales showing an 11% improvement and earnings expected to rise by 54.9% [17][18] - **Dorman Products**: Released hundreds of new automotive repair solutions, expanding its catalog and creating over 12 million new sales opportunities. The Zacks Consensus Estimate for 2025 sales indicates a 4.9% improvement [19][20] - **Sterling Infrastructure**: Reported a 7% year-over-year revenue increase in Q1 2025, with adjusted earnings per share surging by 29%. The company has a long-term earnings growth rate of 15% [21]