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Zacks.com featured highlights DiamondRock, Vertiv, Mueller Water Products and Phibro
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For Immediate Release
Chicago, IL – September 17, 2026 – Stocks in this week’s DiamondRock Hospitality Co. (DRH - Free Report) , Vertiv Holdings Co. (VRT - Free Report) , Mueller Water Products, Inc. (MWA - Free Report) and Phibro Animal Health Corp. (PAHC - Free Report)
4 Stocks with Strong Interest Coverage to Buy as Yields Rise
Wall Street ended lower Tuesday as investors grew cautious ahead of the Federal Reserve’s interest-rate announcement, while a sharp rise in Treasury yields added pressure on risk assets. Market anxiety was further amplified by escalating hostilities in the Middle East, including attacks targeting Saudi Arabia’s energy infrastructure. The resulting increase in energy prices supported the energy sector but also heightened the risk that constrained crude supplies could sustain inflationary pressures and weigh on consumer spending.
Against this backdrop, the Dow Jones Industrial Average declined 328.09 points, or 0.63%, to 52,093.11. The S&P 500 slipped 0.45% to 7,585.73, while the Nasdaq Composite posted a steeper 0.78% decline to close at 25,981.57.
With Treasury yields elevated and borrowing costs remaining under pressure, businesses with greater earnings coverage of interest expenses are generally better positioned to absorb higher financing costs without materially straining cash flows. A healthy interest coverage ratio can also indicate greater financial flexibility, lower debt-servicing risk and a stronger capacity to navigate periods of tighter monetary conditions and economic uncertainty.
DiamondRock Hospitality Co., Vertiv Holdings Co., Mueller Water Products, Inc. and Phibro Animal Health Corp. have impressive interest coverage ratios.
Why Interest Coverage Ratio?
The interest coverage ratio is used to determine how effectively a company can pay the interest charges on its debt.
Debt, which is crucial for most companies to finance operations, comes at a cost called interest. Interest expense has a direct bearing on a company's profitability, and its creditworthiness depends on how effectively it meets 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 the number of times the interest could be paid from earnings and gauges the margin of safety a firm carries for paying interest.
An interest coverage ratio lower than 1.0 implies that the company is unable to fulfill its interest obligations and could default on repaying debt. A company that is 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 17 stocks that qualified the screening:
DiamondRock Hospitality, a self-advised real estate investment trust that owns a leading portfolio of geographically diversified hotels, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 15.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DiamondRock Hospitality’s current financial-year sales and EPS implies growth of 2.9% and 14.8%, respectively, from the year-ago period. DRH has a VGM Score of B. The stock has risen 52.4% over the past year.
Vertiv Holdings, a global leader in critical digital infrastructure, carries a Zacks Rank #2 and has a VGM Score of A. VRT has a trailing four-quarter earnings surprise of 12.6%, on average.
The Zacks Consensus Estimate for Vertiv Holdings’ current financial-year sales and EPS calls for growth of 36.9% and 59.3%, respectively, from the year-ago period. The stock has soared 71.4% over the past year.
Mueller Water Products, a leading manufacturer and marketer of products and solutions used in the transmission, distribution and measurement of water, carries a Zacks Rank #2 and has a VGM Score of B. The company has a trailing four-quarter earnings surprise of 13.2%, on average.
The Zacks Consensus Estimate for Mueller Water Products’ current financial-year sales and EPS suggests growth of 3.5% and 20.6%, respectively, from the year-ago period. The stock has fallen 9.9% over the past year.
Phibro Animal Health, a leading global diversified animal health and mineral nutrition company, carries a Zacks Rank #2 and has a VGM Score of A. The company has a trailing four-quarter earnings surprise of 18.4%, on average.
The Zacks Consensus Estimate for Phibro Animal Health's current financial-year sales and EPS suggests growth of 3.8% and 6.5%, respectively, from the year-ago period. The stock has declined 9.2% over the past year.
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.
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/performance for information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
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Zacks.com featured highlights DiamondRock, Vertiv, Mueller Water Products and Phibro
For Immediate Release
Chicago, IL – September 17, 2026 – Stocks in this week’s DiamondRock Hospitality Co. (DRH - Free Report) , Vertiv Holdings Co. (VRT - Free Report) , Mueller Water Products, Inc. (MWA - Free Report) and Phibro Animal Health Corp. (PAHC - Free Report)
4 Stocks with Strong Interest Coverage to Buy as Yields Rise
Wall Street ended lower Tuesday as investors grew cautious ahead of the Federal Reserve’s interest-rate announcement, while a sharp rise in Treasury yields added pressure on risk assets. Market anxiety was further amplified by escalating hostilities in the Middle East, including attacks targeting Saudi Arabia’s energy infrastructure. The resulting increase in energy prices supported the energy sector but also heightened the risk that constrained crude supplies could sustain inflationary pressures and weigh on consumer spending.
Against this backdrop, the Dow Jones Industrial Average declined 328.09 points, or 0.63%, to 52,093.11. The S&P 500 slipped 0.45% to 7,585.73, while the Nasdaq Composite posted a steeper 0.78% decline to close at 25,981.57.
With Treasury yields elevated and borrowing costs remaining under pressure, businesses with greater earnings coverage of interest expenses are generally better positioned to absorb higher financing costs without materially straining cash flows. A healthy interest coverage ratio can also indicate greater financial flexibility, lower debt-servicing risk and a stronger capacity to navigate periods of tighter monetary conditions and economic uncertainty.
DiamondRock Hospitality Co., Vertiv Holdings Co., Mueller Water Products, Inc. and Phibro Animal Health Corp. have impressive interest coverage ratios.
Why Interest Coverage Ratio?
The interest coverage ratio is used to determine how effectively a company can pay the interest charges on its debt.
Debt, which is crucial for most companies to finance operations, comes at a cost called interest. Interest expense has a direct bearing on a company's profitability, and its creditworthiness depends on how effectively it meets 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 the number of times the interest could be paid from earnings and gauges the margin of safety a firm carries for paying interest.
An interest coverage ratio lower than 1.0 implies that the company is unable to fulfill its interest obligations and could default on repaying debt. A company that is 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 17 stocks that qualified the screening:
DiamondRock Hospitality, a self-advised real estate investment trust that owns a leading portfolio of geographically diversified hotels, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 15.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DiamondRock Hospitality’s current financial-year sales and EPS implies growth of 2.9% and 14.8%, respectively, from the year-ago period. DRH has a VGM Score of B. The stock has risen 52.4% over the past year.
Vertiv Holdings, a global leader in critical digital infrastructure, carries a Zacks Rank #2 and has a VGM Score of A. VRT has a trailing four-quarter earnings surprise of 12.6%, on average.
The Zacks Consensus Estimate for Vertiv Holdings’ current financial-year sales and EPS calls for growth of 36.9% and 59.3%, respectively, from the year-ago period. The stock has soared 71.4% over the past year.
Mueller Water Products, a leading manufacturer and marketer of products and solutions used in the transmission, distribution and measurement of water, carries a Zacks Rank #2 and has a VGM Score of B. The company has a trailing four-quarter earnings surprise of 13.2%, on average.
The Zacks Consensus Estimate for Mueller Water Products’ current financial-year sales and EPS suggests growth of 3.5% and 20.6%, respectively, from the year-ago period. The stock has fallen 9.9% over the past year.
Phibro Animal Health, a leading global diversified animal health and mineral nutrition company, carries a Zacks Rank #2 and has a VGM Score of A. The company has a trailing four-quarter earnings surprise of 18.4%, on average.
The Zacks Consensus Estimate for Phibro Animal Health's current financial-year sales and EPS suggests growth of 3.8% and 6.5%, respectively, from the year-ago period. The stock has declined 9.2% over the past year.
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/2990389/4-stocks-with-strong-interest-coverage-to-buy-as-yields-rise
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 >>.
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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.