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Chicago, IL – February 18, 2026 – Stocks in this week’s article Boot Barn Holdings, Inc. BOOT, Brinker International, Inc. EAT, Tapestry, Inc. TPR and Cardinal Health, Inc. CAH.
Relying solely on stock price movements without understanding the company’s fundamentals can cause investors to lose money. Investors must carefully review a company's financial health to make informed decisions, especially in today’s unpredictable market. While sales and earnings are often the go-to metrics, they can sometimes be misleading and may not show whether a company has the financial strength to cover its obligations. This is where the coverage ratio holds the key.
Boot Barn Holdings, Inc., Brinker International, Inc., Tapestry, Inc. and Cardinal Health, Inc. boast impressive interest coverage ratios.
The interest coverage ratio is used to determine how effectively a company can pay interest charges on its debt.
Debt, which is crucial to financing operations for the majority of companies, comes at a cost called interest. Interest expense has a direct bearing on the profitability of a company. The company’s creditworthiness depends on how effectively it meets its 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 how many times the interest could be paid from earnings and gauges the margin of safety a firm has for paying interest.
An interest coverage ratio lower than 1 suggests that the company is unable to fulfill its interest obligations and could default on repaying debt. A company 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 14 stocks that qualified the screening:
Boot Barn Holdings, a leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children, sports a Zacks Rank #1 and has a VGM Score of B. BOOT has a trailing four-quarter earnings surprise of 4.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and EPS indicates growth of 17.6% and 26%, respectively, from the year-ago period. The stock has gained 36.2% in the past year.
Brinker International, one of the leading casual dining restaurant companies, sports a Zacks Rank #1 and has a VGM Score of A. The company has a trailing four-quarter earnings surprise of 8.2%, on average.
The Zacks Consensus Estimate for Brinker International’s current financial-year sales and EPS calls for growth of 7.9% and 19.8%, respectively, from the year-ago period. The stock has declined 3.6% in the past year.
Tapestry, a house of iconic accessories and lifestyle brands, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 12.8%, on average.
The Zacks Consensus Estimate for Tapestry’s current financial-year sales and EPS implies growth of 9.6% and 23.7%, respectively, from the year-ago period. TPR has a VGM Score of B. The stock has soared 72.8% in the past year.
Cardinal Health, a global healthcare company that distributes pharmaceuticals, manufactures and supplies medical and laboratory products, carries a Zacks Rank #2 and has a VGM Score of A. CAH has a trailing four-quarter earnings surprise of 9.3%, on average.
The Zacks Consensus Estimate for Cardinal Health’s current financial-year sales and EPS indicates growth of 16.5% and 25.1%, respectively, from the year-ago period. The stock has surged 74.8% in the past year.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2870581/boot-3-other-stocks-with-strong-interest-coverage-to-buy-now
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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.
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This article originally published on Zacks Investment Research (zacks.com).
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