Zacks.com featured highlights include ResMed, Safran, Pentair, Casey's and Leonardo

For Immediate ReleaseChicago, IL – October 13, 2025 – Stocks in this week’s article are ResMed Inc. RMD, Safran SAFRY, Pentair PNR, Casey's General Stores CASY and Leonardo DRS, Inc. DRS.5 Low-Leverage Stocks to Buy as Markets Grow UnsteadyFollowing a steady rally over the past few days, Wall Street hit a wall on Oct. 9, 2025, as major stock indices took a tumble. As the market gears up for mega banks to release their Q3 numbers next week, uncertainty surrounding the long-term viability of AI-led growth amid mounting recession fears and a government shutdown appears to have contributed to investor skepticism, causing the market to tumble, despite airline giant Delta Air Lines surpassing expectations.In such a situation, an investor might not feel confident enough to invest in the stock market. However, a prudent investor knows that this is the right time to buy stocks that are safe bets. To this end, we recommend stocks like ResMed Inc., Safran, Pentair, Casey's General Stores and Leonardo DRS, Inc. These stocks bear low leverage and, therefore, should be a safer option for investors who don’t want to lose big in times 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/EquityDebt-to-Equity Ratio = Total Liabilities/Shareholders’ EquityThis 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 having reached its first 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 StrategyConsidering 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.Excluding stocks that have a negative or a zero debt-to-equity ratio, here we present our five picks out of the 17 stocks that made it through the screen.ResMed: It holds a major position as a designer, manufacturer, and distributor in the global market for generators, masks, and related accessories used in the treatment of sleep-disordered breathing (SDB) and other respiratory disorders. On Sept. 3, 2025, the company launched Sleep Institute, a global clinical insights initiative dedicated to advancing the science and understanding of sleep health. This should strengthen ResMed’s position in the sleep healthcare market.The Zacks Consensus Estimate for RMD’s 2025 revenues suggests an improvement of 7.8% from the 2024 reported figure. The stock boasts a long-term (three-to-five-year) earnings growth rate of 13.8%. It currently has a Zacks Rank #2.Safran: It is a high-technology company that produces aircraft, rocket engines, and propulsion systems. On Sept. 17, 2025, the company signed a seven-year component maintenance contract (with an option to extend for another five years) with Singapore Airlines for the airline’s Airbus A380 fleet. The agreement underscores Singapore Airlines’ continued confidence in Safran Electrical & Power’s technical expertise, global support network, and commitment to operational excellence.The Zacks Consensus Estimate for SAFRY’s 2025 sales suggests a year-over-year improvement of 36.3%. The stock boasts a long-term earnings growth rate of 20.7%. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Pentair: The company delivers a comprehensive range of smart, sustainable water solutions to homes, businesses and industries globally. Its portfolio of solutions enables customers to access clean, safe water, reduce water consumption, and recover and reuse it. On Sept. 18, 2025, Pentair announced the completion of its previously announced acquisition of Hydra-Stop LLC from Madison Industries for approximately $290 million, subject to customary adjustments. This strategic acquisition should expand PNR’s offerings in the municipal water supply space.The Zacks Consensus Estimate for PNR’s 2025 sales suggests a year-over-year improvement of 1.5%. The stock boasts a long-term earnings growth rate of 10.8%. It currently carries a Zacks Rank #2.Casey's General Stores: It operates convenience stores under the Casey's and Casey's General Store names. On Sept. 8, 2025, the company announced financial results for first-quarter fiscal 2026, which ended on July 31, 2025. Its inside same-store sales increased 4.3% year over year, while earnings grew 19.5%.The Zacks Consensus Estimate for CASY’s fiscal 2026 sales indicates an improvement of 10.6% from the fiscal 2025 reported actuals. The Zacks Consensus Estimate for CASY’s fiscal 2026 sales indicates an improvement of 9.3% from the fiscal 2025 reported actuals. It currently carries a Zacks Rank #2.Leonardo DRS: It develops and manufactures advanced defense products for the U.S. military, intelligence agencies and allies. On Sept. 8, 2025, Leonardo DRS announced the launch of its new product line of high-performance AI-enabled Ground Vehicle Architecture Smart Display systems called Rugged Smart Displays – Ground (RSD-G). The next-generation tactical computing systems are designed to set a new standard for ruggedness, performance, and connectivity compared to existing tactical smart display systems used in ground combat vehicles.The Zacks Consensus Estimate for DRS’ 2025 sales suggests an improvement of 10.9% from the 2024 reported figure. The stock boasts a long-term earnings growth rate of 17.3%. It currently has a Zacks Rank #2.You can get the remaining stocks on this list by signing up now for your two-week free trial to the Research Wizard and start using this screen in your trading. Further, you can create your strategies and backtest them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today.And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2766365/5-low-leverage-stocks-to-buy-as-market-takes-a-tumble?art_rec=quote-stock_overview-zacks_news-ID01-txt-2766365Disclosure: 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 WeekZacks.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 NewsMany 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. 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Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ResMed Inc. (RMD): Free Stock Analysis Report Pentair plc (PNR): Free Stock Analysis Report Casey's General Stores, Inc. (CASY): Free Stock Analysis Report Safran SA (SAFRY): Free Stock Analysis Report Leonardo DRS, Inc. (DRS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks