5 Low-Leverage Stocks to Bet on as Investors Shy Away From Technology

U.S. equities rallied Dec. 11, 2025, with the S&P 500 and Dow hitting record closes after the Federal Reserve cut rates by 25 basis points on Dec. 10, prompting rotation away from high-growth tech toward rate-sensitive, lower-leverage stocks. Zacks Investment Research recommends five low-leverage picks — Casey’s General Stores (CASY), Hamilton Insurance Group (HG), Northrim Bancorp (NRIM), REV Group (REVG) and Engie (ENGIY) — highlighting recent operational and near-term earnings strength (e.g., CASY same-store sales +3.3% and EPS +14%; HG net premiums +16.5% and operating EPS $1.20 vs $0.16; NRIM’s $60m subordinated note placement and revenue/earnings estimates up ~29.6%/51.5%; REVG ex-bus sales +13% and adjusted EPS +62.7%; Engie’s financial close on a planned up-to-390 MW Polish offshore wind farm and earnings est. +31.8%). The recommendations are derived from a screen prioritizing debt-to-equity below industry medians, minimum liquidity and Zacks VGM A/B with Rank 1–2, positioning these names as potentially more resilient alternatives to overlevered AI-focused tech stocks.

Analysis

U.S. equity indices closed higher on Dec. 11, 2025, with the S&P 500 and Dow Jones Industrial Average posting fresh records after the Federal Reserve cut interest rates by 25 basis points on Dec. 10; the article notes investor rotation away from high-growth tech toward rate-sensitive, lower-leverage equities and assigns a mildly positive, defensive market tone. Zacks Investment Research screened for low-leverage names using debt-to-equity below industry medians plus liquidity and fundamentals filters (price >= $10, 20-day average volume >= 50,000, VGM A/B and Zacks Rank 1–2), explicitly arguing lower leverage improves solvency and downside resilience in volatile markets. The piece highlights five names that passed the screen and shows company-specific traction: Casey’s (CASY) reported Q2 fiscal 2026 same-store sales +3.3% and EPS +14% with revenue/earnings estimates +9.6%/+11.8% and Zacks Rank #2; Hamilton Insurance (HG) delivered net premiums +16.5% and operating EPS $1.20 vs $0.16 with revenue/earnings estimates +20.9%/+8.5% and Zacks Rank #1; Northrim (NRIM) completed a $60m private placement of 6.875% subordinated notes to bolster capital alongside revenue/earnings estimates +29.6%/+51.5% and Zacks Rank #1; REV Group (REVG) showed ex‑Bus net sales +13% and adjusted EPS $0.83 (+62.7%) with FY26 estimates +7.3%/+30.4% and Zacks Rank #2; Engie (ENGIY) closed financing for an up-to-390 MW Polish offshore wind project with earnings estimate +31.8% and Zacks Rank #2. Readers should note the article is promotional and contains Zacks disclosures about potential position holdings and a subscription pitch; the recommendation set relies on Zacks’ metrics and forward estimates, so performance will be sensitive to Fed policy shifts, execution on stated projects, and the realized leverage/earnings trajectories of each company.

Key Decisions for Investors

• Consider modestly increasing exposure to rate-sensitive, lower-leverage names identified by the Zacks screen given the Fed cut and rotation away from overvalued AI/tech, while keeping position sizes conservative
• Prioritize due diligence on HG and NRIM first—both carry Zacks Rank #1 and show material premium/earnings improvements or capital actions (HG: net premiums +16.5%, operating EPS jump; NRIM: $60m subordinated notes and strong est. revenue/earnings growth)
• Validate each target’s debt-to-equity versus its industry median, confirm liquidity meets the stated 20-day volume threshold, and wait for next earnings or operational catalysts before scaling into positions
• Monitor U.S. monetary policy and any reacceleration in tech leadership as triggers to trim these defensive holdings, and be aware the article is produced by Zacks with disclosed conflicts so perform independent financial analysis before allocating capital