Buy These 5 Low-Leverage Stocks Amid Mixed Market Movement

The U.S. stock market indices delivered a mixed performance yesterday. While the S&P 500 rose roughly 0.1%, the Nasdaq Composite dropped 0.3%. On the other hand, the Dow Jones Industrial Average went up 0.7%.

While optimism surrounding the U.S. government shutdown ending soon lifted the Dow Jones Industrial Average, tech stocks’ sell-off dragged down the Nasdaq.

In such a situation, investors might lack the confidence to enter the stock market. However, a prudent investor recognizes that this can be an opportune time to buy stocks that are considered safe bets. To this end, we recommend companies such as CSW Industrials (CSW), Jones Lang LaSalle (JLL), Hecla Mining (HL), Safran SA (SAFRY) and Siemens Energy (SMNEY). These stocks carry low leverage and, therefore, may offer a safer option for investors seeking stability during periods of market turmoil.

Now, before selecting low-leverage stocks, let’s explore what leverage is and how choosing a low-leverage stock can help investors.

What’s the Significance of Low-Leverage Stocks?

In finance, leverage refers to the practice of borrowing capital to help companies run their operations smoothly and expand their business. Such borrowings are done through debt financing. But there remains an option for equity finance. This is probably due to the cheap and easy availability of debt over equity financing.

However, debt financing has its share of drawbacks. Particularly, it is desirable only as long as it successfully generates a higher rate of return compared to the interest rate. To avoid considerable losses in your portfolio, it is advisable to avoid companies that rely excessively on debt financing.

The crux of safe investment lies in choosing a company that is not burdened with debt, as a debt-free stock is almost impossible to find.

The equity market can be volatile at times, and, as an investor, if you don’t want to lose big time, we suggest you invest in stocks that bear low leverage and are, hence, less risky.

To identify such stocks, historically, several leverage ratios have been developed to measure the amount of debt a company bears. The debt-to-equity ratio is one such common ratio.

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 reflects improved solvency for a company.

With the third-quarter 2025 earnings season almost in its last lap, investors should be eyeing stocks that have demonstrated solid earnings growth in recent periods.

But if a stock bears a high debt-to-equity ratio in times of economic downturn, its so-called booming earnings picture might turn into a nightmare.

The Winning Strategy

Considering the factors above, it is 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 choose stocks that have the potential to give you steady returns, we have expanded our screening criteria to include some other factors.

Here are the other parameters:

Debt/Equity less than X-Industry Median: Stocks that are less leveraged than their industry peers.

Current Price greater than or equal to 10: The stocks must be trading at a minimum of $10 or above.

Average 20-day Volume greater than or equal to 50000: A substantial trading volume ensures that the stock is easily tradable.

Percentage Change in EPS F(0)/F(-1) greater than X-Industry Median: Earnings growth adds to optimism, leading to a stock’s price appreciation.

VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.

Estimated One-Year EPS Growth F(1)/F(0) greater than 5: This shows earnings growth expectation.

Zacks Rank #1 or 2: Irrespective of market conditions, stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have a proven history of success.

Excluding stocks that have a negative or a zero debt-to-equity ratio, here we present our five picks out of the 21 stocks that made it through the screen.

CSW Industrials: It manufactures and sells industrial products — coatings, sealants, adhesives and specialty chemicals. On Nov. 4, 2025, CSWI Industrials announced that it has completed the acquisition of Motors & Armatures Parts for approximately $650 million in cash. This strategic acquisition expands CSWI’s existing product portfolio in the profitable heating, ventilation, air conditioning and refrigeration end market.

The Zacks Consensus Estimate for CSW’s fiscal 2026 sales suggests an improvement of 23.5% from the year-ago quarter’s level. The stock boasts a four-quarter average earnings surprise of 6.90%. It currently has a Zacks Rank #2.

Jones Lang LaSalle: It is a leading full-service real estate firm that provides corporate, financial and investment management services to corporations and other real estate owners, users and investors worldwide. On Nov. 5, 2025, JLL announced third-quarter 2025 results. Its adjusted earnings per share surged 29% year over year, while its revenues went up 10% in local currency.

The Zacks Consensus Estimate for JLL’s 2025 sales suggests an improvement of 10.3% from the year-ago quarter’s level. The Zacks Consensus Estimate for its 2025 earnings implies an improvement of 22.2% from the year-ago quarter’s level. It currently has a Zacks Rank #2.

Hecla Mining.: It is a leading low-cost U.S. silver producer with operating mines in Alaska and Idaho, and a growing gold producer with an operating mine in Quebec, Canada. On Nov. 5, 2025, the company reported third-quarter 2025 results. Its revenues improved 65.4% year over year, while its gross profit surged a massive 204.4%.

The Zacks Consensus Estimate for HL’s 2025 sales suggests an improvement of 33.3% from the year-ago quarter’s level. The Zacks Consensus Estimate for 2025 earnings implies an improvement of 245.5% from the year-ago quarter’s level. It currently carries a Zacks Rank #2.

Safran: It is a high-technology company that produces aircraft, rocket engines, and propulsion systems. On Oct. 28, 2025, Safran announced that it has finalized the renewal agreement for its partnership with Polytechnique Montréal, which will take effect on Nov. 20. The new agreement, effective from 2025 through 2030, will back 20 research projects and joint initiatives focused on advancing sustainable aviation technologies.

The Zacks Consensus Estimate for SAFRY’s 2025 sales suggests a year-over-year improvement of 39.9%. The stock boasts a long-term earnings growth rate of 20.5%. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Siemens Energy: It focuses on the design, development, manufacture, and supply of products, as well as the installation and provision of technologically advanced services, primarily in the renewable energy sector with an emphasis on wind power plants. On Oct. 1, 2025, Siemens Energy will supply 10 gas turbines to Xcel Energy to support the construction of two power plants. The first turbine deliveries are scheduled for early 2026.

The Zacks Consensus Estimate for SMNEY’s fiscal 2026 sales indicates an improvement of 21.2% from the fiscal 2025 reported actuals. The stock holds a long-term (three-to-five years) earnings growth rate of 51.3%. It currently carries a Zacks Rank #2.

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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.

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