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Zacks.com featured highlights include Stride, Ralph Lauren, Cardinal Health and Vertiv
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For Immediate Release
Chicago, IL – November 11, 2026 – Stocks in this week’s article are Stride, Inc. (LRN - Free Report) , Ralph Lauren Corp. (RL - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Vertiv Holdings Co. (VRT - Free Report) .
4 Stocks with Impressive Interest Coverage Ratios to Buy Now
We often evaluate a company based on its sales and earnings performance. However, these metrics may not be sufficient on their own. A stock may receive a short-term boost when revenues and earnings increase year over year or surpass estimates in a particular quarter, creating an opportunity for investors to capitalize on the momentum. Nevertheless, relying solely on sales and earnings figures may not generate sustainable long-term returns.
A thorough assessment of a company’s financial health is, therefore, essential for making informed investment decisions. Coverage ratios, which measure a company's ability to meet its financial obligations, play a crucial role in this evaluation. Among these, the interest coverage ratio is particularly useful as it indicates how comfortably a company can meet its interest expenses from operating earnings. A higher ratio generally reflects a stronger ability to service debt, providing greater financial flexibility and a potential cushion against economic uncertainties.
Stride, Inc., Ralph Lauren Corp. , Cardinal Health, Inc. and Vertiv Holdings Co. stand out for their strong 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are four of the 24 stocks that qualified the screening:
Stride, one of the nation's most successful technology-based education companies, sports a Zacks Rank #1 and has a VGM Score of A. LRN has a trailing four-quarter earnings surprise of 7.2%, on average.
The Zacks Consensus Estimate for Stride’s current financial-year sales and EPS indicates growth of 2.1% and 8.5%, respectively, from the year-ago period. The stock has declined 13.7% over the past year.
Ralph Lauren, a global leader in the design, marketing and distribution of luxury lifestyle products, carries a Zacks Rank #2 and has a VGM Score of B. RL has a trailing four-quarter earnings surprise of 8.4%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales and EPS calls for growth of 8% and 14.7%, respectively, from the year-ago period. The stock has jumped 19.4% over the past year.
Cardinal Health, a global distributor of pharmaceuticals and medical products, offering specialty healthcare and home-health solutions, carries a Zacks Rank #2 and has a VGM Score of A. The company has a trailing four-quarter earnings surprise of 13.8%, on average.
The Zacks Consensus Estimate for Cardinal Health’s current financial-year sales and EPS suggests growth of 4.7% and 13.9%, respectively, from the year-ago period. The stock has advanced 33.9% 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%, on average.
The Zacks Consensus Estimate for Vertiv Holdings’ current financial-year sales and EPS calls for growth of 42.2% and 69.5%, respectively, from the year-ago period. The stock has gained 12% over the past year.
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View the Zacks #1 Rank List
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Zacks.com featured highlights include Stride, Ralph Lauren, Cardinal Health and Vertiv
For Immediate Release
Chicago, IL – November 11, 2026 – Stocks in this week’s article are Stride, Inc. (LRN - Free Report) , Ralph Lauren Corp. (RL - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Vertiv Holdings Co. (VRT - Free Report) .
4 Stocks with Impressive Interest Coverage Ratios to Buy Now
We often evaluate a company based on its sales and earnings performance. However, these metrics may not be sufficient on their own. A stock may receive a short-term boost when revenues and earnings increase year over year or surpass estimates in a particular quarter, creating an opportunity for investors to capitalize on the momentum. Nevertheless, relying solely on sales and earnings figures may not generate sustainable long-term returns.
A thorough assessment of a company’s financial health is, therefore, essential for making informed investment decisions. Coverage ratios, which measure a company's ability to meet its financial obligations, play a crucial role in this evaluation. Among these, the interest coverage ratio is particularly useful as it indicates how comfortably a company can meet its interest expenses from operating earnings. A higher ratio generally reflects a stronger ability to service debt, providing greater financial flexibility and a potential cushion against economic uncertainties.
Stride, Inc., Ralph Lauren Corp. , Cardinal Health, Inc. and Vertiv Holdings Co. stand out for their strong 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are four of the 24 stocks that qualified the screening:
Stride, one of the nation's most successful technology-based education companies, sports a Zacks Rank #1 and has a VGM Score of A. LRN has a trailing four-quarter earnings surprise of 7.2%, on average.
The Zacks Consensus Estimate for Stride’s current financial-year sales and EPS indicates growth of 2.1% and 8.5%, respectively, from the year-ago period. The stock has declined 13.7% over the past year.
Ralph Lauren, a global leader in the design, marketing and distribution of luxury lifestyle products, carries a Zacks Rank #2 and has a VGM Score of B. RL has a trailing four-quarter earnings surprise of 8.4%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales and EPS calls for growth of 8% and 14.7%, respectively, from the year-ago period. The stock has jumped 19.4% over the past year.
Cardinal Health, a global distributor of pharmaceuticals and medical products, offering specialty healthcare and home-health solutions, carries a Zacks Rank #2 and has a VGM Score of A. The company has a trailing four-quarter earnings surprise of 13.8%, on average.
The Zacks Consensus Estimate for Cardinal Health’s current financial-year sales and EPS suggests growth of 4.7% and 13.9%, respectively, from the year-ago period. The stock has advanced 33.9% 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%, on average.
The Zacks Consensus Estimate for Vertiv Holdings’ current financial-year sales and EPS calls for growth of 42.2% and 69.5%, respectively, from the year-ago period. The stock has gained 12% over the past year.
Free: Instant Access to Zacks' Market-Crushing Strategies
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 tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>