We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks.com featured highlights Sterling Infrastructure, BJ's Wholesale, Molina Healthcare and Halozyme
Read MoreHide Full Article
For Immediate Release
Chicago, IL – June 4, 2025 – The stocks in this week’s article are Sterling Infrastructure, Inc. (STRL - Free Report) , BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) , Molina Healthcare, Inc. (MOH - Free Report) and Halozyme Therapeutics, Inc. (HALO - Free Report) .
4 Stocks With Strong Interest Coverage Ratios to Buy in June 2025
U.S. stocks gained on Monday, marking a positive start to June despite rising global trade concerns. The S&P 500 gained 0.41% to reach 5,935.94, the Nasdaq rose 0.67% to 19,242.61, and the Dow Jones Industrial Average edged up 35.41 points, or 0.08%, to finish at 42,305.48. These gains came as tensions between the United States and China resurfaced, with Beijing rejecting allegations of violating a temporary trade deal and instead accusing Washington of failing to fulfill its part.
Looking ahead, market participants are likely to monitor further developments in U.S.-China relations, as any shift could impact market sentiment. An ill-informed investor can lose cash if he wagers on a stock only based on 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.
Sterling Infrastructure, Inc., BJ's Wholesale Club Holdings, Inc., Molina Healthcare, Inc. and Halozyme Therapeutics, Inc. boast an impressive interest coverage ratio.
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, the 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.
The 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 1 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 time.
Here are four of the eight stocks that qualified the screening:
Sterling Infrastructure, which is engaged in e-infrastructure, transportation and building solutions, carries a Zacks Rank #2 and has a VGM Score of B. Sterling Infrastructure delivered a trailing four-quarter earnings surprise of 11.5%, on average. 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 earnings per share (EPS) suggests growth of 38.5% from the year-ago period. STRL has risen 68.4% in the past year.
BJ's Wholesale Club, a leading operator of membership warehouse clubs, carries a Zacks Rank #2 and has a VGM Score of A. BJ has a trailing four-quarter earnings surprise of 17.7%, on average.
The Zacks Consensus Estimate for BJ's Wholesale Club’s current financial year sales and EPS indicates growth of 5.6% and 5.9%, respectively, from the year-ago period. BJ has surged 29.1% in the past year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Molina Healthcare, which provides managed healthcare services under Medicaid and Medicare programs and through state insurance marketplaces, carries a Zacks Rank #2 and has a VGM Score of A.
The Zacks Consensus Estimate for Molina Healthcare’s current financial year sales and EPS calls for growth of 8.4% and 7.8%, respectively, from the year-ago period. The stock has declined 3.3% in the past year.
Halozyme Therapeutics, a biopharmaceutical company, carries a Zacks Rank #2 and has a VGM Score of A. HALO has a trailing four-quarter earnings surprise of 17.6%, on average.
The Zacks Consensus Estimate for Halozyme Therapeutics’ current financial year sales and EPS suggests growth of 22.1% and 23.6%, respectively, from the year-ago period. The stock has risen 25.6% 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.
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.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Zacks.com featured highlights Sterling Infrastructure, BJ's Wholesale, Molina Healthcare and Halozyme
For Immediate Release
Chicago, IL – June 4, 2025 – The stocks in this week’s article are Sterling Infrastructure, Inc. (STRL - Free Report) , BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) , Molina Healthcare, Inc. (MOH - Free Report) and Halozyme Therapeutics, Inc. (HALO - Free Report) .
4 Stocks With Strong Interest Coverage Ratios to Buy in June 2025
U.S. stocks gained on Monday, marking a positive start to June despite rising global trade concerns. The S&P 500 gained 0.41% to reach 5,935.94, the Nasdaq rose 0.67% to 19,242.61, and the Dow Jones Industrial Average edged up 35.41 points, or 0.08%, to finish at 42,305.48. These gains came as tensions between the United States and China resurfaced, with Beijing rejecting allegations of violating a temporary trade deal and instead accusing Washington of failing to fulfill its part.
Looking ahead, market participants are likely to monitor further developments in U.S.-China relations, as any shift could impact market sentiment. An ill-informed investor can lose cash if he wagers on a stock only based on 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.
Sterling Infrastructure, Inc., BJ's Wholesale Club Holdings, Inc., Molina Healthcare, Inc. and Halozyme Therapeutics, Inc. boast an impressive interest coverage ratio.
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, the 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.
The 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 1 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 time.
Here are four of the eight stocks that qualified the screening:
Sterling Infrastructure, which is engaged in e-infrastructure, transportation and building solutions, carries a Zacks Rank #2 and has a VGM Score of B. Sterling Infrastructure delivered a trailing four-quarter earnings surprise of 11.5%, on average. 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 earnings per share (EPS) suggests growth of 38.5% from the year-ago period. STRL has risen 68.4% in the past year.
BJ's Wholesale Club, a leading operator of membership warehouse clubs, carries a Zacks Rank #2 and has a VGM Score of A. BJ has a trailing four-quarter earnings surprise of 17.7%, on average.
The Zacks Consensus Estimate for BJ's Wholesale Club’s current financial year sales and EPS indicates growth of 5.6% and 5.9%, respectively, from the year-ago period. BJ has surged 29.1% in the past year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Molina Healthcare, which provides managed healthcare services under Medicaid and Medicare programs and through state insurance marketplaces, carries a Zacks Rank #2 and has a VGM Score of A.
The Zacks Consensus Estimate for Molina Healthcare’s current financial year sales and EPS calls for growth of 8.4% and 7.8%, respectively, from the year-ago period. The stock has declined 3.3% in the past year.
Halozyme Therapeutics, a biopharmaceutical company, carries a Zacks Rank #2 and has a VGM Score of A. HALO has a trailing four-quarter earnings surprise of 17.6%, on average.
The Zacks Consensus Estimate for Halozyme Therapeutics’ current financial year sales and EPS suggests growth of 22.1% and 23.6%, respectively, from the year-ago period. The stock has risen 25.6% 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.
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.
Disclosure: Performance information for Zacks’ portfolios and strategies is available at: https://www.zacks.com/performance.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2483514/4-stocks-with-strong-interest-coverage-ratios-to-buy-in-june-2025
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
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.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
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.