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Zacks.com Highlights: Werner Enterprises, Amedysis, Haverty Furniture, Energen And MGIC Investment

Published 11/01/2018, 07:52 AM
Updated 07/09/2023, 06:31 AM

For Immediate Release

Chicago, IL – November 1, 2018 - Stocks in this week’s article include: Werner Enterprises (NASDAQ:WERN) , Amedysis, Inc. (NASDAQ:AMED) , Haverty Furniture Companies (NYSE:HVT) , Energen Corp. (NYSE:EGN) and MGIC Investment Corp. (NYSE:MTG) .

Screen of the Week of Zacks Investment Research:

5 Low Leverage Stocks to Secure Your Portfolio Amid Volatility

Investors should know that uncertainty can hit the global equity market anytime and therefore it is better to take measures beforehand than repent later. This is why investors need to be acquainted with leverage.

Notably, leverage, otherwise termed as debt financing, is the use of exogenous funds by corporations to run their operations smoothly and expand the same. Although there is option for equity financing, historically, debt financing has been preferred over equity because of its easy and cheap availability.

However, one should keep in mind that debt financing remains a feasible option as long as the companies succeed in generating a higher rate of return compared to the interest rate. Exorbitant debt financing might even lead to a corporation’s bankruptcy in a worst case scenario.

Therefore, one can safely invest in a stock as long as it bears a low level of debt.

And here comes the importance of leverage ratios, which have been constructed to safeguard investors from becoming victims of debt trap. Debt-to-equity ratio is one such measure, perhaps the most popular one, to evaluate a company’s creditworthiness for potential equity investments.

Analyzing Debt/Equity

Debt-to-Equity Ratio = Total Liabilities/Shareholders’ Equity

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This metric is a liquidity ratio that indicates the amount of financial risk a company bears. A company with a lower debt-to-equity ratio indicates improved solvency for a company.

As the third-quarter reporting season is in full swing, investors must be eyeing stocks that exhibited solid earnings growth in the prior quarters. But if a stock bears a high debt-to-equity ratio, in times of economic downturns, its so-called booming earnings picture might turn into a nightmare.

Thus, it will be wise for investors to select companies with low leverage. These are financially more secure and immune to financial bankruptcy.

And that's what we're screening for today…

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/333352/5-low-leverage-stocks-to-secure-your-portfolio-amid-volatility

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Werner Enterprises, Inc. (WERN): Free Stock Analysis Report

Energen Corporation (EGN): Free Stock Analysis Report

MGIC Investment Corporation (MTG): Free Stock Analysis Report

Amedisys, Inc. (AMED): Free Stock Analysis Report

Haverty Furniture Companies, Inc. (HVT): Free Stock Analysis Report

Original post

Zacks Investment Research

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