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Zacks.com featured highlights include: KNSL, PLXS, FMNB, DHI and LL

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For Immediate Release

Chicago, IL – September 22, 2020 - Stocks in this week’s article are Kinsale Capital Group (KNSL - Free Report) , Plexus Corp. (PLXS - Free Report) , Farmers National Banc Corp. (FMNB - Free Report) , D.R. Horton (DHI - Free Report) and Lumber Liquidators Holdings .

Buy These 5 Low-Leverage Stocks Amid Market Turbulence

Financial leverage refers to a popular investment strategy that involves borrowing of funds to expand business, purchase inventory and other assets as well as support different aspects of business operations.

Although there is an option for equity financing, historically, debt financing has been preferred over equity because of its easy and cheap availability.

Yet, debt financing has its share of drawbacks. The problem arises when the amount of debt a company bears becomes exorbitant. A high degree of financial leverage means high interest payments, which affect the company's bottom line.

Now, in this context it is imperative to mention that the impact of the coronavirus outbreak that sent the global economy on a rollercoaster ride at the onset of the pandemic continues to cause turbulence.

So investors should choose stocks wisely amid these uncertain times as debt-ridden stocks bear high risk of solvency. Since a debt-free stock is hardly found, investing in a stock with comparatively lower debt level should be a prudent choice by investors.

Historically several leverage ratios have been developed to measure the amount of debt a company bears and the debt-to-equity ratio is one of the most common ratios.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1061031/buy-these-5-low-leverage-stocks-amid-market-turbulence

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.

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