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Bet on These 5 Low-Leverage Stocks Amid Technology Pullbacks
Wall Street kicked off this week on a mixed note. While the Dow Jones managed to edge higher, both the S&P 500 and tech-heavy Nasdaq slipped under pressure from rising oil prices and technology pullbacks.
Despite recent market rallies, persistent macroeconomic pressure and geopolitical flashpoints — including recent Houthi strikes against Saudi airport infrastructure and elevated tensions in the Strait of Hormuz — continue to fuel market uncertainty.
Against this backdrop, for risk-averse investors concerned about high-beta swings, pivoting toward low-leverage companies offers a more defensive strategy.
These financially prudent firms maintain strong balance sheets with minimal debt, equipping them to navigate shifting interest rates and economic headwinds. By containing financial risk while generating consistent cash flows, low-leverage stalwarts provide a durable foundation for your portfolio and an effective hedge against energy-driven downturns.
Hence, we recommend low-leverage stocks, such as Micron Technology, Casey's General Stores, Ganesco, Plains Group andVince Holding.
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 third-quarter 2026 earnings season in its first 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 that have a negative or zero debt-to-equity ratio, we present our five picks out of the 19 that made it through the screen.
Micron Technology: It manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory, NAND flash memory, NOR Flash and other technologies. On Sept. 30, 2026, Micron announced its fourth-quarter fiscal 2026 results. The company's quarterly revenues improved a massive 266.3% year over year to $41.46 billion, while its adjusted earnings per share (EPS) surged from $3.03 to $33.42 in the fiscal fourth quarter.
The Zacks Consensus Estimate for MU's fiscal 2027 revenues indicates an improvement of 105.1% from the prior-year reported level. The stock boasts a long-term (three-to-five-years) earnings growth rate of 32.60%. It currently sports a Zacks Rank #1.
Casey's General Stores: It is an American convenience store chain and the third-largest convenience store retailer in the United States. On Sept. 8, 2026, the company announced its first-quarter fiscal 2026 results. Its inside same-store sales increased 3.2% year over year, while its EPS improved nearly 28% to $7.37.
The Zacks Consensus Estimate for CASY's fiscal 2026 revenues indicates an improvement of 16.9% from the prior-year reported actuals. The stock currently boasts a long-term earnings growth rate of 14.30% and a Zacks Rank of 2.
Ganesco: It is a specialty retail and branded company, which sells footwear and accessories in retail stores. On Sept. 15, 2026, Ganesco announced the launch of its Wrangler footwear collection, marking a milestone in its multiyear licensing agreement with Kontoor Brands and its legendary denim and lifestyle brand.
The Zacks Consensus Estimate for GCO's fiscal 2027 earnings indicates an improvement of 62.1% from the prior-year reported number. The stock currently boasts a four-quarter average earnings surprise of 11.16% and a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here.
Plains Group: It is involved in the transportation, storage, terminalling, and marketing of crude oil and refined products. It also focuses on the processing, transportation, fractionation, storage, and marketing of natural gas liquids, including ethane and natural gasoline products, as well as propane and butane products.
On Sept. 16, 2026, the company announced that a wholly owned subsidiary of it has entered into a definitive agreement to acquire SCM PR II, LLC (Silver Creek) from subsidiaries of Tailwater Capital and The Energy and Minerals Group for an aggregate cash consideration of $585 million. Silver Creek owns and operates one of the largest integrated crude oil gathering systems in the Powder River Basin, serving a diversified customer base that includes many of the basin's leading producers.
The Zacks Consensus Estimate for PAGP's 2026 revenues indicates an improvement of 30.6% from the prior-year reported actuals. The Zacks Consensus Estimate for PAGP's 2026 earnings indicates an improvement of 236.2% from the prior-year reported numbers. It currently sports a Zacks Rank #1.
Vince Holdings: It offers a broad range of women's and men's ready-to-wear apparel, including its signature cashmere sweaters, leather jackets, luxe leggings, dresses, silk and woven tops, denim and footwear. On Sept. 10, 2026, the company announced its second-quarter fiscal 2026 results. Its net sales increased 11.7% year over year to $81.8 million, while adjusted net income improved a solid 175.5% to $13.5 million.
The Zacks Consensus Estimate for VNCE's fiscal 2026 revenues indicates an improvement of 14% from the prior-year reported actuals. The Zacks Consensus Estimate for VNCE's fiscal 2026 earnings implies a solid surge of 175% from the prior-year reported figures. The stock currently sports a Zacks Rank #1.
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: Bigstock
Zacks.com featured highlights include Micron Technology, Casey's General Stores, Ganesco, Plains Group and Vince
For Immediate Release
Chicago, IL – October 14, 2026 – Stocks in this week’s article are Micron Technology (MU - Free Report) , Casey's General Stores (CASY - Free Report) , Ganesco (GCO - Free Report) , Plains Group (PAGP - Free Report) and Vince Holding (VNCE - Free Report) .
Bet on These 5 Low-Leverage Stocks Amid Technology Pullbacks
Wall Street kicked off this week on a mixed note. While the Dow Jones managed to edge higher, both the S&P 500 and tech-heavy Nasdaq slipped under pressure from rising oil prices and technology pullbacks.
Despite recent market rallies, persistent macroeconomic pressure and geopolitical flashpoints — including recent Houthi strikes against Saudi airport infrastructure and elevated tensions in the Strait of Hormuz — continue to fuel market uncertainty.
Against this backdrop, for risk-averse investors concerned about high-beta swings, pivoting toward low-leverage companies offers a more defensive strategy.
These financially prudent firms maintain strong balance sheets with minimal debt, equipping them to navigate shifting interest rates and economic headwinds. By containing financial risk while generating consistent cash flows, low-leverage stalwarts provide a durable foundation for your portfolio and an effective hedge against energy-driven downturns.
Hence, we recommend low-leverage stocks, such as Micron Technology, Casey's General Stores, Ganesco, Plains Group andVince Holding.
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 third-quarter 2026 earnings season in its first 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 that have a negative or zero debt-to-equity ratio, we present our five picks out of the 19 that made it through the screen.
Micron Technology: It manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory, NAND flash memory, NOR Flash and other technologies. On Sept. 30, 2026, Micron announced its fourth-quarter fiscal 2026 results.
The company's quarterly revenues improved a massive 266.3% year over year to $41.46 billion, while its adjusted earnings per share (EPS) surged from $3.03 to $33.42 in the fiscal fourth quarter.
The Zacks Consensus Estimate for MU's fiscal 2027 revenues indicates an improvement of 105.1% from the prior-year reported level. The stock boasts a long-term (three-to-five-years) earnings growth rate of 32.60%. It currently sports a Zacks Rank #1.
Casey's General Stores: It is an American convenience store chain and the third-largest convenience store retailer in the United States. On Sept. 8, 2026, the company announced its first-quarter fiscal 2026 results. Its inside same-store sales increased 3.2% year over year, while its EPS improved nearly 28% to $7.37.
The Zacks Consensus Estimate for CASY's fiscal 2026 revenues indicates an improvement of 16.9% from the prior-year reported actuals. The stock currently boasts a long-term earnings growth rate of 14.30% and a Zacks Rank of 2.
Ganesco: It is a specialty retail and branded company, which sells footwear and accessories in retail stores. On Sept. 15, 2026, Ganesco announced the launch of its Wrangler footwear collection, marking a milestone in its multiyear licensing agreement with Kontoor Brands and its legendary denim and lifestyle brand.
The Zacks Consensus Estimate for GCO's fiscal 2027 earnings indicates an improvement of 62.1% from the prior-year reported number. The stock currently boasts a four-quarter average earnings surprise of 11.16% and a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here.
Plains Group: It is involved in the transportation, storage, terminalling, and marketing of crude oil and refined products. It also focuses on the processing, transportation, fractionation, storage, and marketing of natural gas liquids, including ethane and natural gasoline products, as well as propane and butane products.
On Sept. 16, 2026, the company announced that a wholly owned subsidiary of it has entered into a definitive agreement to acquire SCM PR II, LLC (Silver Creek) from subsidiaries of Tailwater Capital and The Energy and Minerals Group for an aggregate cash consideration of $585 million. Silver Creek owns and operates one of the largest integrated crude oil gathering systems in the Powder River Basin, serving a diversified customer base that includes many of the basin's leading producers.
The Zacks Consensus Estimate for PAGP's 2026 revenues indicates an improvement of 30.6% from the prior-year reported actuals. The Zacks Consensus Estimate for PAGP's 2026 earnings indicates an improvement of 236.2% from the prior-year reported numbers. It currently sports a Zacks Rank #1.
Vince Holdings: It offers a broad range of women's and men's ready-to-wear apparel, including its signature cashmere sweaters, leather jackets, luxe leggings, dresses, silk and woven tops, denim and footwear. On Sept. 10, 2026, the company announced its second-quarter fiscal 2026 results. Its net sales increased 11.7% year over year to $81.8 million, while adjusted net income improved a solid 175.5% to $13.5 million.
The Zacks Consensus Estimate for VNCE's fiscal 2026 revenues indicates an improvement of 14% from the prior-year reported actuals. The Zacks Consensus Estimate for VNCE's fiscal 2026 earnings implies a solid surge of 175% from the prior-year reported figures. The stock currently sports a Zacks Rank #1.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/3006132/bet-on-these-5-low-leverage-stocks-amid-technology-pullbacks
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.