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5 Low-Leverage Stocks to Buy as High Oil Prices Shake Investor Confidence
Major U.S. stock indices ended lower on Aug. 12, 2026, as investor sentiment was weighed down by escalating U.S.-Iran tensions and dimming prospects for the reopening of the Strait of Hormuz. A surge in crude oil prices, combined with underperformance across key technology stocks, further pressured the broader market.
In an environment marked by heightened geopolitical volatility and macro uncertainty, pivoting to financially resilient companies — specifically low-leverage stocks backed by strong balance sheets — offers a prudent defensive strategy for equity investors.
These fiscally conservative companies are better positioned to navigate interest rate fluctuations and geopolitical uncertainty. By providing a stable foundation in a shifting market, they can serve as a strategic hedge against a potential energy-driven economic slowdown.
We recommend low-leverage stocks, such as LifeStance Health Group, Tutor Perini, Valero Energy, SharkNinja, Inc. and Lumentum. Before selecting low-leverage stocks, it is important to understand what leverage is and how investing in low-leverage companies can benefit investors.
What’s the Significance of Low-Leverage Stocks?
In finance, leverage refers to the use of borrowed capital to support business operations and drive expansion. Companies typically raise such funds through debt financing, although equity financing remains an alternative. However, firms often prefer debt due to its relatively lower cost and easier availability compared to issuing equity.
Debt financing comes with inherent risks and is beneficial only when it generates returns that exceed the cost of borrowing. To limit downside risk, investors should be cautious of companies that rely excessively on debt. Prudent investing involves selecting businesses with manageable leverage, as completely debt-free companies are rare.
The equity market can be volatile at times. As an investor, if you want to avoid significant losses, we suggest focusing on stocks with low leverage, which are generally deemed less risky.
To identify such stocks, several leverage ratios have historically been developed to measure the amount of debt a company carries. The debt-to-equity ratio is among the most widely used financial ratios.
Analyzing Debt/Equity
Debt-to-Equity Ratio = Total Liabilities/Shareholders’ Equity
This metric is a liquidity ratio that indicates the amount of financial risk a company bears. A lower debt-to-equity ratio suggests improved solvency for a company.
With the second-quarter 2026 earnings season almost in its last lap, investors should focus on stocks that have demonstrated solid earnings growth in recent periods.
If a stock carries a high debt-to-equity ratio during an economic downturn, its seemingly strong earnings could quickly turn into a nightmare.
The Winning Strategy
Considering the aforementioned factors, it would be prudent to choose stocks with a low debt-to-equity ratio to ensure steady returns.
Yet, an investment strategy based solely on the debt-to-equity ratio might not fetch the desired outcome. To select stocks with the potential to provide steady returns, we have expanded our screening criteria to include additional factors.
Excluding stocks with a negative or zero debt-to-equity ratio, we present our five picks out of the 20 that made it through the screen.
LifeStance Health: It is a provider of virtual and in-person outpatient mental health care for children, adolescents and adults of mental health conditions. On Aug. 6, 2026, the company announced its second-quarter 2026 results. Its revenues increased 26% year over year, while its visit volumes improved 19% to 2.6 million.
The Zacks Consensus Estimate for LFST’s 2026 revenues indicates an improvement of 16.6% from the prior-year reported level. The Zacks Consensus Estimate for LFST’s 2026 earnings indicates a massive surge of 600% from the prior-year reported level. It currently carries a Zacks Rank #2.
Tutor Perini: It provides diversified general contracting, construction management and design-build services to private clients and public agencies worldwide. On Aug. 5, 2026, the company released its second-quarter 2026 results. TPC’s revenues improved 19% year over year, while its adjusted earnings per share soared 23%.
The Zacks Consensus Estimate for TPC’s 2026 revenues indicates an improvement of 14% from the prior-year reported numbers. The Zacks Consensus Estimate for TPC’s 2026 earnings indicates an improvement of 27.7% from the prior-year reported numbers. TPC currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Valero Energy: It is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. On July 30, 2026, the company announced its second-quarter 2026 results.
VLO’s second-quarter adjusted earnings per share were $12.54, which marked a massive improvement from the year-ago quarter’s reported level of $2.28. Its revenues soared 49% year over year to $44.5 billion.
The Zacks Consensus Estimate for VLO’s 2026 revenues indicates an improvement of 14.4% from the prior-year reported number. The stock boasts a long-term (three-to-five years) earnings growth rate of 37.30%. It currently holds a Zacks Rank #2.
SharkNinja: It offers a different approach to home insurance, built from the ground up to deliver a new standard of care and protection for homeowners. On July 16, 2026, the company launched the Ninja Crispi Microwave, the brand’s first-ever countertop microwave, which delivers traditional settings plus crispy, oven-quality results in non-toxic glass, with full meals ready up to 60% faster than a conventional oven.
The Zacks Consensus Estimate for SN’s 2026 revenues suggests an improvement of 16.8% from the year-ago reported level. The stock boasts a long-term earnings growth rate of 14.40%. It currently holds a Zacks Rank #2.
Lumentum: It is a provider of optical and photonic products serving cloud, Artificial Intelligence/Machine Learning (AI/ML), telecommunications, consumer and industrial end markets. On Aug. 11, 2026, the company announced its fourth-quarter fiscal 2026 results. Its quarterly revenues improved 109.3% year over year, while its adjusted operating margin expanded 2,160 basis points (bps) to 36.6%.
The Zacks Consensus Estimate for LITE’s fiscal 2027 revenues indicates an improvement of 88.4% from the prior-year reported actuals. The Zacks Consensus Estimate for LITE’s fiscal 2027 earnings indicates an improvement of 121.8% from the prior-year reported actuals. It currently holds a Zacks Rank #2.
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.
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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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/performancefor information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
Image: Shutterstock
Zacks.com featured highlights include LifeStance Health, Tutor Perini, Valero Energy, SharkNinja and Lumentum
For Immediate Release
Chicago, IL – August 13, 2026 – Stocks in this week’s article are LifeStance Health Group (LFST - Free Report) , Tutor Perini (TPC - Free Report) , Valero Energy (VLO - Free Report) , SharkNinja, Inc. (SN - Free Report) and Lumentum (LITE - Free Report) .
5 Low-Leverage Stocks to Buy as High Oil Prices Shake Investor Confidence
Major U.S. stock indices ended lower on Aug. 12, 2026, as investor sentiment was weighed down by escalating U.S.-Iran tensions and dimming prospects for the reopening of the Strait of Hormuz. A surge in crude oil prices, combined with underperformance across key technology stocks, further pressured the broader market.
In an environment marked by heightened geopolitical volatility and macro uncertainty, pivoting to financially resilient companies — specifically low-leverage stocks backed by strong balance sheets — offers a prudent defensive strategy for equity investors.
These fiscally conservative companies are better positioned to navigate interest rate fluctuations and geopolitical uncertainty. By providing a stable foundation in a shifting market, they can serve as a strategic hedge against a potential energy-driven economic slowdown.
We recommend low-leverage stocks, such as LifeStance Health Group, Tutor Perini, Valero Energy, SharkNinja, Inc. and Lumentum. Before selecting low-leverage stocks, it is important to understand what leverage is and how investing in low-leverage companies can benefit investors.
What’s the Significance of Low-Leverage Stocks?
In finance, leverage refers to the use of borrowed capital to support business operations and drive expansion. Companies typically raise such funds through debt financing, although equity financing remains an alternative. However, firms often prefer debt due to its relatively lower cost and easier availability compared to issuing equity.
Debt financing comes with inherent risks and is beneficial only when it generates returns that exceed the cost of borrowing. To limit downside risk, investors should be cautious of companies that rely excessively on debt. Prudent investing involves selecting businesses with manageable leverage, as completely debt-free companies are rare.
The equity market can be volatile at times. As an investor, if you want to avoid significant losses, we suggest focusing on stocks with low leverage, which are generally deemed less risky.
To identify such stocks, several leverage ratios have historically been developed to measure the amount of debt a company carries. The debt-to-equity ratio is among the most widely used financial ratios.
Analyzing Debt/Equity
Debt-to-Equity Ratio = Total Liabilities/Shareholders’ Equity
This metric is a liquidity ratio that indicates the amount of financial risk a company bears. A lower debt-to-equity ratio suggests improved solvency for a company.
With the second-quarter 2026 earnings season almost in its last lap, investors should focus on stocks that have demonstrated solid earnings growth in recent periods.
If a stock carries a high debt-to-equity ratio during an economic downturn, its seemingly strong earnings could quickly turn into a nightmare.
The Winning Strategy
Considering the aforementioned factors, it would be prudent to choose stocks with a low debt-to-equity ratio to ensure steady returns.
Yet, an investment strategy based solely on the debt-to-equity ratio might not fetch the desired outcome. To select stocks with the potential to provide steady returns, we have expanded our screening criteria to include additional factors.
Excluding stocks with a negative or zero debt-to-equity ratio, we present our five picks out of the 20 that made it through the screen.
LifeStance Health: It is a provider of virtual and in-person outpatient mental health care for children, adolescents and adults of mental health conditions. On Aug. 6, 2026, the company announced its second-quarter 2026 results. Its revenues increased 26% year over year, while its visit volumes improved 19% to 2.6 million.
The Zacks Consensus Estimate for LFST’s 2026 revenues indicates an improvement of 16.6% from the prior-year reported level. The Zacks Consensus Estimate for LFST’s 2026 earnings indicates a massive surge of 600% from the prior-year reported level. It currently carries a Zacks Rank #2.
Tutor Perini: It provides diversified general contracting, construction management and design-build services to private clients and public agencies worldwide. On Aug. 5, 2026, the company released its second-quarter 2026 results. TPC’s revenues improved 19% year over year, while its adjusted earnings per share soared 23%.
The Zacks Consensus Estimate for TPC’s 2026 revenues indicates an improvement of 14% from the prior-year reported numbers. The Zacks Consensus Estimate for TPC’s 2026 earnings indicates an improvement of 27.7% from the prior-year reported numbers. TPC currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Valero Energy: It is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. On July 30, 2026, the company announced its second-quarter 2026 results.
VLO’s second-quarter adjusted earnings per share were $12.54, which marked a massive improvement from the year-ago quarter’s reported level of $2.28. Its revenues soared 49% year over year to $44.5 billion.
The Zacks Consensus Estimate for VLO’s 2026 revenues indicates an improvement of 14.4% from the prior-year reported number. The stock boasts a long-term (three-to-five years) earnings growth rate of 37.30%. It currently holds a Zacks Rank #2.
SharkNinja: It offers a different approach to home insurance, built from the ground up to deliver a new standard of care and protection for homeowners. On July 16, 2026, the company launched the Ninja Crispi Microwave, the brand’s first-ever countertop microwave, which delivers traditional settings plus crispy, oven-quality results in non-toxic glass, with full meals ready up to 60% faster than a conventional oven.
The Zacks Consensus Estimate for SN’s 2026 revenues suggests an improvement of 16.8% from the year-ago reported level. The stock boasts a long-term earnings growth rate of 14.40%. It currently holds a Zacks Rank #2.
Lumentum: It is a provider of optical and photonic products serving cloud, Artificial Intelligence/Machine Learning (AI/ML), telecommunications, consumer and industrial end markets. On Aug. 11, 2026, the company announced its fourth-quarter fiscal 2026 results. Its quarterly revenues improved 109.3% year over year, while its adjusted operating margin expanded 2,160 basis points (bps) to 36.6%.
The Zacks Consensus Estimate for LITE’s fiscal 2027 revenues indicates an improvement of 88.4% from the prior-year reported actuals. The Zacks Consensus Estimate for LITE’s fiscal 2027 earnings indicates an improvement of 121.8% from the prior-year reported actuals. It currently holds a Zacks Rank #2.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2973344/5-low-leverage-stocks-to-buy-as-high-oil-prices-shake-investor-confidence
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.
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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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/performancefor information about the performance numbers displayed in this press release.