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Zacks.com featured highlights Sterling Infrastructure, Modine Manufacturing, Deckers Outdoor and Herc
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For Immediate Release
Chicago, IL – April 2, 2024 – Stocks in this week’s article are Sterling Infrastructure, Inc. (STRL - Free Report) , Modine Manufacturing Co. (MOD - Free Report) , Deckers Outdoor Corp. (DECK - Free Report) and Herc Holdings Inc. (HRI - Free Report) .
Pick These 4 Stocks with Impressive Interest Coverage Ratios
An ill-informed investor can lose cash if he wagers on a stock only on the basis of the numbers flashing on a real-time stock screen. A critical analysis of a company’s financial background is a must for a better investment decision, especially at a time when the stock market is juggling myriad issues.
Often, investors evaluate a company’s performance by simply looking at its sales and earnings, which sometimes do not reveal the real picture. To be more precise, they do not tell whether a company’s fundamentals are sound enough to meet its financial obligations. Here, the coverage ratio comes into play — the higher the metric, the more efficient an enterprise will be in meeting its financial obligations.
Why Interest Coverage Ratio?
The interest coverage ratio is used to determine how effectively a company can pay interest charges on its debt.
Debt, which is crucial to financing operations for the majority of companies, comes at a cost called interest. Interest expense has a direct bearing on the profitability of a company. The company’s creditworthiness depends on how effectively it meets its interest obligations. Therefore, interest coverage ratio is one of the important criteria to factor in before making any investment decision.
Interest Coverage Ratio = Earnings before Interest & Taxes (EBIT) divided by Interest Expense.
Interest coverage ratio suggests how many times the interest could be paid from earnings and gauges the margin of safety a firm has for paying interest.
An interest coverage ratio lower than one suggests that the company is unable to fulfill its interest obligations and could default on repaying debt. A company capable of generating earnings well above its interest expense can withstand financial hardships. One should also track the company’s past performance to determine whether the interest coverage ratio has improved or worsened over a period of time.
Sterling Infrastructure, Inc., Modine Manufacturing Co., Deckers Outdoor Corp. and Herc Holdings Inc. boast an impressive interest coverage ratio.
Here are four of the 18 stocks that qualified the screening:
Sterling Infrastructure, which is engaged in e-infrastructure, transportation and building solutions, sports a Zacks Rank #1 and has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sterling Infrastructure’s current financial year sales and EPS suggests growth of 11.7% and 11.4%, respectively, from a year ago. Sterling Infrastructure has a trailing four-quarter earnings surprise of 20.4%, on average. The stock has rallied 190.4% in the past year.
Modine Manufacturing, a diversified global leader in thermal management technology and solutions, sports a Zacks Rank #1 and has a VGM Score of B.
The Zacks Consensus Estimate for Modine Manufacturing’s current financial year sales and EPS suggests growth of 4.3% and 67.7%, respectively, from the year-ago period’s levels. MOD has a trailing four-quarter earnings surprise of 51.5%, on average. The stock has skyrocketed 315% in the past year.
Deckers, a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories, sports a Zacks Rank #1 and has a VGM Score of B.
The Zacks Consensus Estimate for Deckers’ current financial year sales and EPS suggests growth of 15.8% and 38.7%, respectively, from the year-ago period. DECK has a trailing four-quarter earnings surprise of 32.1%, on average. The stock has rallied 107.5% in the past year.
Herc Holdings, which operates as an equipment rental supplier in the United States and internationally, carries a Zacks Rank #2 and has a VGM Score of B.
The Zacks Consensus Estimate for Herc Holdings’ current financial year sales and EPS suggests growth of 5.9% and 12.7%, respectively, from the year-ago period. Shares of HRI have risen 49.8% in the past year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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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Zacks.com featured highlights Sterling Infrastructure, Modine Manufacturing, Deckers Outdoor and Herc
For Immediate Release
Chicago, IL – April 2, 2024 – Stocks in this week’s article are Sterling Infrastructure, Inc. (STRL - Free Report) , Modine Manufacturing Co. (MOD - Free Report) , Deckers Outdoor Corp. (DECK - Free Report) and Herc Holdings Inc. (HRI - Free Report) .
Pick These 4 Stocks with Impressive Interest Coverage Ratios
An ill-informed investor can lose cash if he wagers on a stock only on the basis of the numbers flashing on a real-time stock screen. A critical analysis of a company’s financial background is a must for a better investment decision, especially at a time when the stock market is juggling myriad issues.
Often, investors evaluate a company’s performance by simply looking at its sales and earnings, which sometimes do not reveal the real picture. To be more precise, they do not tell whether a company’s fundamentals are sound enough to meet its financial obligations. Here, the coverage ratio comes into play — the higher the metric, the more efficient an enterprise will be in meeting its financial obligations.
Why Interest Coverage Ratio?
The interest coverage ratio is used to determine how effectively a company can pay interest charges on its debt.
Debt, which is crucial to financing operations for the majority of companies, comes at a cost called interest. Interest expense has a direct bearing on the profitability of a company. The company’s creditworthiness depends on how effectively it meets its interest obligations. Therefore, interest coverage ratio is one of the important criteria to factor in before making any investment decision.
Interest Coverage Ratio = Earnings before Interest & Taxes (EBIT) divided by Interest Expense.
Interest coverage ratio suggests how many times the interest could be paid from earnings and gauges the margin of safety a firm has for paying interest.
An interest coverage ratio lower than one suggests that the company is unable to fulfill its interest obligations and could default on repaying debt. A company capable of generating earnings well above its interest expense can withstand financial hardships. One should also track the company’s past performance to determine whether the interest coverage ratio has improved or worsened over a period of time.
Sterling Infrastructure, Inc., Modine Manufacturing Co., Deckers Outdoor Corp. and Herc Holdings Inc. boast an impressive interest coverage ratio.
Here are four of the 18 stocks that qualified the screening:
Sterling Infrastructure, which is engaged in e-infrastructure, transportation and building solutions, sports a Zacks Rank #1 and has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sterling Infrastructure’s current financial year sales and EPS suggests growth of 11.7% and 11.4%, respectively, from a year ago. Sterling Infrastructure has a trailing four-quarter earnings surprise of 20.4%, on average. The stock has rallied 190.4% in the past year.
Modine Manufacturing, a diversified global leader in thermal management technology and solutions, sports a Zacks Rank #1 and has a VGM Score of B.
The Zacks Consensus Estimate for Modine Manufacturing’s current financial year sales and EPS suggests growth of 4.3% and 67.7%, respectively, from the year-ago period’s levels. MOD has a trailing four-quarter earnings surprise of 51.5%, on average. The stock has skyrocketed 315% in the past year.
Deckers, a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories, sports a Zacks Rank #1 and has a VGM Score of B.
The Zacks Consensus Estimate for Deckers’ current financial year sales and EPS suggests growth of 15.8% and 38.7%, respectively, from the year-ago period. DECK has a trailing four-quarter earnings surprise of 32.1%, on average. The stock has rallied 107.5% in the past year.
Herc Holdings, which operates as an equipment rental supplier in the United States and internationally, carries a Zacks Rank #2 and has a VGM Score of B.
The Zacks Consensus Estimate for Herc Holdings’ current financial year sales and EPS suggests growth of 5.9% and 12.7%, respectively, from the year-ago period. Shares of HRI have risen 49.8% in the past year.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2248444/pick-these-4-stocks-with-impressive-interest-coverage-ratio
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Visit: https://www.zacks.com/
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.