Host Hotels & Resorts: It is one of the leading lodging real estate investment trusts (REITs), engaged in the ownership, acquisition, and redevelopment of luxury and upper-upscale hotels in the United States and abroad. The Zacks Consensus Estimate for fiscal 2023 earnings implies a 70.3% improvement from the fiscal 2022 reported figure. Much like TikTok’s viral GRWM format, guests will sit solo at e.l.f.’s gorgeous vanity and apply products while storytelling and reacting to questions flying in from off-camera.ĮLF delivered an earnings surprise of 104.99%, on average, in the trailing four quarters. It is a playful mashup of popular formats, including the late-night talk show and the TikTok-native Get Ready With Me (GRWM). On Apr 27, 2023, the company launched its new digital series, "Vanity Table Talk.", which is the social-first show. Beauty: It operates as a cosmetic company. Zacks Rank #1 or 2: Irrespective of market conditions, stocks with a Zacks Rank #1 or 2 have a proven history of success.Įxcluding stocks that have a negative or a zero debt-to-equity ratio, here we present our five picks out of the 10 stocks that made it through the screen.Į.l.f. VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.Įstimated One-Year EPS Growth F(1)/F(0) greater than 5: This shows earnings growth expectation.
Percentage Change in EPS F(0)/F(-1) greater than X-Industry Median: Earnings growth adds to optimism, leading to a stock’s price appreciation. To choose stocks that have the potential to give you steady returns, we have expanded our screening criteria to include some other factors.ĭebt/Equity less than X-Industry Median: Stocks that are less leveraged than their industry peers.Ĭurrent Price greater than or equal to 10: The stocks must be trading at a minimum of $10 or above.Īverage 20-day Volume greater than or equal to 50000: A substantial trading volume ensures that the stock is easily tradable. Yet, an investment strategy based solely on the debt-to-equity ratio might not fetch the desired outcome. The Winning StrategyĬonsidering the aforementioned factors, it is prudent to choose stocks with a low debt-to-equity ratio to ensure steady returns. But if a stock bears a high debt-to-equity ratio in times of economic downturn, its so-called booming earnings picture might turn into a nightmare. With the first-quarter earnings cycle almost in its last lap, investors must be eyeing stocks that have exhibited solid earnings growth in the recent past.
A lower debt-to-equity ratio reflects improved solvency for a company. This metric is a liquidity ratio that indicates the amount of financial risk a company bears. Analyzing Debt/Equityĭebt-to-Equity Ratio = Total Liabilities/Shareholders’ Equity To identify such stocks, historically several leverage ratios have been developed to measure the amount of debt a company bears and the debt-to-equity ratio is one of the most common ratios. Such an event shows how volatile the equity market can be at times and as an investor if you don’t want to lose big time, we suggest you invest in stocks, which bear low leverage and are hence less risky. Therefore, the crux of safe investment lies in choosing a company that is not burdened with debt, as a debt-free stock is almost impossible to find. So, to avoid considerable losses in your portfolio, one should always avoid companies that resort to exorbitant debt financing. Particularly, it is desirable only as long as it successfully generates a higher rate of return compared to the interest rate. However, debt financing has its share of drawbacks. This is probably due to the cheap and easy availability of debt over equity financing. But there remains an option for equity finance. Such borrowings are done through debt financing. In finance, leverage is a term used to denote the practice of borrowing capital by companies to run their operations smoothly and expand the same. Now, before selecting low-leverage stocks, let’s explore what leverage is and how choosing a low-leverage stock helps investors.
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