Zacks.com featured highlights Deckers Outdoor, Boot Barn, Addus HomeCare and The Ensign Group

For Immediate ReleaseChicago, IL – February 20, 2025 – Stocks in this week’s article are Deckers Outdoor Corp. DECK, Boot Barn Holdings, Inc. BOOT, Addus HomeCare Corp. ADUS and The Ensign Group, Inc. ENSG.Pick These 4 Stocks with Impressive Interest Coverage RatiosAn ill-informed investor can lose cash if he wagers on a stock only based on the numbers flashing on a real-time stock screen. A critical analysis of a company’s financial background is a must for a better investment decision, especially at a time when the stock market is juggling myriad issues.Often, investors evaluate a company’s performance by simply looking at its sales and earnings, which sometimes do not reveal the real picture. To be more precise, they do not tell whether a company’s fundamentals are sound enough to meet its financial obligations. Here, the coverage ratio comes into play — the higher the metric, the more efficient an enterprise will be in meeting its financial obligations.Deckers Outdoor Corp., Boot Barn Holdings, Inc., Addus HomeCare Corp. and The Ensign Group, Inc. boast an impressive interest coverage ratio.Why Interest Coverage Ratio?The interest coverage ratio is used to determine how effectively a company can pay interest charges on its debt.Debt, which is crucial to financing operations for the majority of companies, comes at a cost called interest. Interest expense has a direct bearing on the profitability of a company. The company’s creditworthiness depends on how effectively it meets its interest obligations. Therefore, the interest coverage ratio is one of the important criteria to factor in before making any investment decision.Interest Coverage Ratio = Earnings before Interest & Taxes (EBIT) divided by Interest Expense.The interest coverage ratio suggests how many times the interest could be paid from earnings and gauges the margin of safety a firm has for paying interest.An interest coverage ratio lower than 1 suggests that the company is unable to fulfill its interest obligations and could default on repaying debt. A company capable of generating earnings well above its interest expense can withstand financial hardships. One should also track the company’s past performance to determine whether the interest coverage ratio has improved or worsened over time.Here are four of the 22 stocks that qualified the screening:Deckers, a global leader in designing, marketing and distributing innovative footwear, apparel and accessories, currently sports a Zacks Rank #1 and has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Deckers’ current financial year sales and earnings per share (EPS) suggests growth of 15.6% and 21.2%, respectively, from the year-ago period. DECK has a trailing four-quarter earnings surprise of 36.8%, on average. The stock has risen 8.7% in the past year.Boot Barn Holdings, a leading lifestyle retailer of western and work-related footwear, apparel and accessories, sports a Zacks Rank #1 and has a VGM Score of B. BOOT has a trailing four-quarter earnings surprise of 7.2%, on average.The Zacks Consensus Estimate for Boot Barn Holdings’ current financial year sales and EPS indicates growth of 14.9% and 21.4%, respectively, from the year-ago period. BOOT has jumped 54.1% in the past year.See the Zacks Earnings Calendar to stay ahead of market-making news.Addus HomeCare, a provider of home care services, carries Zacks Rank #2 and a VGM Score of A. ADUS has a trailing four-quarter earnings surprise of 9.3%, on average.The Zacks Consensus Estimate for Addus HomeCare’s current financial year sales and EPS suggests growth of 8.6% and 14.4%, respectively, from the year-ago period’s levels. The stock has rallied 24% in the past year.Ensign Group, a healthcare company that provides nursing, assisted living and other rehabilitation services, carries a Zacks Rank #2 and a VGM Score of A. ENSG has a trailing four-quarter earnings surprise of 1.5%, on average.The Zacks Consensus Estimate for Ensign Group’s current financial year sales and EPS implies growth of 14.3% and 10.6%, respectively, from the year-ago period. The stock has risen 5.6% in the past year.You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own 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/2417924/pick-these-4-stocks-with-impressive-interest-coverage-ratiosFollow us on Twitter:  https://www.twitter.com/zacksresearchJoin us on Facebook:  https://www.facebook.com/ZacksInvestmentResearchZacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Contact: Jim GiaquintoCompany: Zacks.comPhone: 312-265-9268Email: pr@zacks.comVisit: https://www.zacks.com/Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Deckers Outdoor Corporation (DECK): Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report Addus HomeCare Corporation (ADUS): Free Stock Analysis Report The Ensign Group, Inc. (ENSG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks