Zacks Screen Highlights Four Stocks With Strong Interest Coverage
The four companies met a Zacks screen that included above-industry interest coverage and earnings-growth criteria.
Key takeaways
- Zacks named L.B. Foster, Clean Harbors, Brinker International and Mueller Water Products.
- The screen required interest coverage above the industry median and earnings-growth criteria.
- Zacks estimates call for sales and EPS growth at each company in its current financial year.
Zacks highlighted L.B. Foster, Clean Harbors, Brinker International and Mueller Water Products as stocks that passed its interest-coverage screen. The screen also considered earnings growth, trading volume and share price.
The article put the selections against a backdrop of easing rate-hike concerns after U.S. payrolls rose by 29,000 in September. It said the unemployment rate increased to 4.2%, while major U.S. indexes closed higher on Friday.
Zacks said its screen looked for interest coverage above each company’s industry median. Interest coverage compares earnings before interest and taxes with interest expense, indicating how many times earnings can cover interest payments.
Zacks Consensus Estimates point to current financial-year sales and earnings-per-share growth of 4.1% and 134.8% for L.B. Foster, respectively. For Clean Harbors, the estimates imply growth of 7.8% in sales and 34.3% in earnings per share.
For Brinker International, estimates call for sales growth of 7.9% and earnings-per-share growth of 22.5%. Mueller Water Products’ estimates indicate growth of 3.5% in sales and 16.8% in earnings per share.
This article was produced with the help of AI technology. Source: Yahoo Finance
