The Zacks Analyst Blog Highlights: American Woodmark, Cyberonics, Hormel Foods, Mentor Graphics and NIKE

An image of a pen, a tablet and a calculator
Credit: Shutterstock photo

For Immediate Release

Chicago, IL - October 05, 2015 - announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the American Woodmark Corp. ( AMWD ) , Cyberonics Inc. ( CYBX ) , Hormel Foods Corporation ( HRL ) , Mentor Graphics Corp. ( MENT ) and NIKE, Inc. ( NKE ) .

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Friday's Analyst Blog:

5 Top-Ranked Stocks with High Returns, Low Debt

A readily available metric to differentiate between profit-generating and profit-burning companies is the return on equity ("ROE"). ROE denotes the amount of income generated before non-recurring items as a percentage of shareholders' equity. In other words, ROE measures the amount of profit a company produces with its shareholders' money. Quite naturally, a company with a higher ROE is a safer bet compared with its peers.

If a stock bears greater liquidity and lower debt, along with a comparatively higher ROE, its appeal increases manifold. During uncertain times, a capacity to generate higher profit out of shareholders' money provides the necessary protection to a stock. Further, a healthy liquidity position with low debt improves the stock's ability to withstand the pressure exerted by an interest-rate hike.

In the current market condition, picking stocks with these characteristics could be a good long-term strategy.

5 Stocks with High Returns & Low Debt

We have zeroed in on five stocks that have a Zacks Rank #1 (Strong Buy) or 2 (Buy), current ROE (TTM) more than 15%, debt-to-total capital below 10% and debt-to-equity ratio below one. These stocks also have a Growth Style Score 'A' or 'B.' (Click here to know about our style score system ).

American Woodmark Corp. ( AMWD )

This Winchester, VA-based company manufactures and distributes kitchen cabinets and vanities for remodeling and construction of houses.

Zacks Rank #1

Growth Score: B

Current ROE (ttm): 17.88%

Debt/Total Capital: 7.86569

Debt/Equity: 0.09

Cyberonics Inc. ( CYBX )

Based in Houston, TX, Cyberonics Inc. is a medical technology company with core expertise in neuromodulation. The firm provides Vagus Nerve Stimulation ("VNS") therapy for treatment of refractory epilepsy and treatment-resistant depression ("TRD").

Zacks Rank #2

Growth Score: A

Current ROE (ttm): 24.7%

Debt/Total Capital: 2.89479

Debt/Equity: 0.03

Hormel Foods Corporation ( HRL )

Austin, MN-based Hormel Foods is a leading manufacturer and marketer of various meat and food products in the U.S. and international markets.

Zacks Rank #2

Growth Score: B

Current ROE (ttm): 18.28%

Debt/Total Capital: 5.9723

Debt/Equity: 0.06

Mentor Graphics Corp. ( MENT )

Wilsonville, OR-based Mentor Graphics designs, manufactures, markets and supports electronic design automation ("EDA") software for the integrated circuit and systems design markets.

Zacks Rank #2

Growth Score: B

Current ROE (ttm): 17.16%

Debt/Total Capital: 2.5924

Debt/Equity: 0.02

NIKE, Inc. ( NKE )

Headquartered in Beaverton, OR, NIKE is engaged in designing, developing and marketing of footwear, apparel, and equipment & accessory products for men, women and children worldwide.

Zacks Rank #2

Growth Score: B

Current ROE (ttm): 28.11%

Debt/Total Capital: 7.722

Debt/Equity: 0.08

Bottom Line

Promise of high return on investors' money sets a stock apart from its peers. On top of this, features like high liquidity and low debts make these stocks even more reliable.

At the same time, robust growth prospects should further boost investors' confidence in these stocks.

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 >>

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today . Find out What is happening in the stock market today on

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

AMER WOODMARK (AMWD): Free Stock Analysis Report

CYBERONICS INC (CYBX): Free Stock Analysis Report

HORMEL FOODS CP (HRL): Free Stock Analysis Report

MENTOR GRAPHICS (MENT): Free Stock Analysis Report

NIKE INC-B (NKE): Free Stock Analysis Report

To read this article on click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More