In this article, we will look at the 10 Best Low Leverage Stocks to Buy.
Low-leverage stocks are getting more attention as investors look for companies that can keep operating with less dependence on debt. That matters in a market where interest rates and refinancing costs can still pressure balance sheets. Invesco frames this as part of the quality factor, describing quality companies as those that are “highly profitable, carry low levels of debt, and generate stable earnings.” The firm also notes that these businesses can be “more resilient during periods of economic stress or rising inflation.”
MFS says quality investing rests on “disciplined capital allocation, resilient earnings power, and balance sheet strength,” while warning that “profitability can be distorted by leverage.” In summary, earnings can look strong in good times, but high debt can make those earnings more fragile when borrowing costs rise or revenue slows. J.P. Morgan Asset Management adds that quality stocks have shown an ability to “add ballast to portfolios” during “equity market drawdowns,” supporting the idea that balance-sheet strength can matter most when markets become less forgiving.
Against this backdrop, low-leverage stocks deserve a closer look, especially when they combine modest debt with steady earnings, strong cash generation, and disciplined capital allocation. With that in mind, let’s take a look at the 10 Best Low Leverage Stocks to Buy.
Our Methodology
We used the Finviz screener to identify stocks with a debt-to-equity ratio lower than 0.1x. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Wheaton Precious Metals Corp. (NYSE:WPM)
On May 14, 2026, Scotiabank raised the firm’s price target on Wheaton Precious Metals Corp. (NYSE:WPM) to $180 from $178 while maintaining an Outperform rating on the shares. The firm said it updated its model following the company’s Q1 results.
On May 7, 2026, Wheaton Precious Metals Corp. reported record quarterly revenue of $901M, record net earnings of $582M, record adjusted net earnings of $583M, and record operating cash flow of $766M. President and CEO Haytham Hodaly said the company delivered a strong start to 2026, with the Salobo and Peñasquito assets outperforming expectations and helping drive record revenue, earnings, and cash flow during the quarter.
Wheaton Precious Metals Corp. also declared its second quarterly cash dividend for 2026 of 19.5c per common share, representing an 18% increase from the comparable dividend declared in 2025. The dividend will be paid to shareholders of record as of May 27 and is expected to be distributed on or about June 9.
Wheaton Precious Metals Corp. operates as a precious metals streaming company with exposure to gold, silver, palladium, platinum, and cobalt assets.
9. Franco-Nevada Corporation (NYSE:FNV)
On May 14, 2026, Scotiabank raised the firm’s price target on Franco-Nevada Corporation (NYSE:FNV) to $290 from $286 while maintaining a Sector Perform rating on the shares. The firm said it updated its model following the company’s Q1 results.
Meanwhile, National Bank analyst Shane Nagle upgraded Franco-Nevada Corporation to Outperform from Sector Perform with a C$420 price target.
On May 12, 2026, Franco-Nevada Corporation reported Q1 EPS of $2.38, versus the consensus estimate of $2.08. Revenue totaled $650.7M, compared to the consensus estimate of $635.3M. David Harquail reflected on nearly four decades in the gold royalty business, describing Franco-Nevada as a lower-risk gold investment model supported by a strong balance sheet and insulation from inflationary pressures. Harquail also highlighted the company’s long-term shareholder returns and confidence in the management team and board to continue delivering dividends over time.
The company said it remains on track to achieve its FY26 GEO sales guidance of 510,000 to 570,000 ounces, excluding any potential contributions from Cobre Panama. Franco-Nevada added that while the recent approval to process stockpiled ore at Cobre Panama is expected to provide some benefit in 2026, most related deliveries are anticipated in 2027. Based on estimates from First Quantum Minerals, the processing of stockpiled ore could result in stream deliveries to Franco-Nevada of approximately 23,100 gold ounces and 265,000 silver ounces. The company also noted that its royalty and streaming structure provides insulation from rising oil prices, though elevated energy prices could still positively impact its Energy revenue segment. Franco-Nevada said a $10 increase in WTI oil prices above its assumed $70 per barrel level would be expected to increase oil revenue by approximately 12%.
Franco-Nevada Corporation operates as a royalty and streaming company focused primarily on precious metals assets across multiple global regions.
8. Circle Internet Group (NYSE:CRCL)
On May 12, 2026, Needham raised the firm’s price target on Circle Internet Group, Inc. (NYSE:CRCL) to $150 from $130 while maintaining a Buy rating on the shares. The firm said Circle delivered one of its strongest quarters to date as it introduced a broad range of new products and business initiatives. Needham noted that Circle sold $222M worth of Arc tokens in an institutional investor-led presale, implying a fully diluted valuation of approximately $3B for the Arc network. The firm also pointed to the company’s rollout of agentic AI-focused products, which it believes could become a major long-term driver of stablecoin transaction activity.
JPMorgan also raised the firm’s price target on Circle Internet Group, Inc. to $155 from $112 while maintaining an Overweight rating on the shares. The firm said the company’s slight Q1 revenue miss was outweighed by progress toward its longer-term strategic vision. JPMorgan added that Circle’s results demonstrated the relative resilience of stablecoins compared to broader digital asset markets as use cases continue expanding.
On May 11, 2026, Circle Internet Group, Inc. reported Q1 EPS of 21c, versus the consensus estimate of 18c. Revenue totaled $694M, compared to the consensus estimate of $714.88M. Co-Founder, Chairman, and CEO Jeremy Allaire said the quarter reflected execution against what the company views as a broader opportunity involving the convergence of AI platforms and internet-based economic systems. Allaire highlighted momentum surrounding the Arc network, the ARC token presale, and the launch of Circle’s Agent Stack products as part of the company’s effort to build infrastructure for AI-native economic activity and programmable internet finance.
Circle Internet Group, Inc. operates a platform and infrastructure network focused on stablecoin and blockchain-based applications.
7. Toast, Inc. (NYSE:TOST)
On May 12, 2026, Truist lowered the firm’s price target on Toast, Inc. (NYSE:TOST) to $30 from $36 while maintaining a Buy rating on the shares. The firm updated its model following the company’s Q1 results, noting that its recurring gross profit estimates were modestly reduced for the coming quarters due to a more conservative outlook for net location additions.
Meanwhile, Oppenheimer analyst Rayna Kumar lowered the firm’s price target on Toast, Inc. to $36 from $39 while maintaining an Outperform rating on the shares. The firm said Toast delivered a solid quarter, with both revenue and adjusted EBITDA exceeding expectations. Oppenheimer also noted that net location additions came in ahead of forecasts and management raised its FY26 guidance, reinforcing confidence in the company’s longer-term outlook and continued market share gains.
On May 7, 2026, Toast, Inc. reported Q1 EPS of 20c, versus the consensus estimate of 15c. Revenue totaled $1.63B, in line with the consensus estimate. CEO Aman Narang said the company began 2026 with strong momentum, highlighted by 27% growth in recurring gross profit, expansion in GAAP operating income margin to 21%, and the addition of approximately 7,000 net locations during the quarter. Narang also said AI is helping Toast accelerate product development and improve customer outcomes, pointing to the launch of Toast IQ Grow, which includes the company’s first AI agent designed to help restaurants improve their digital presence and drive demand.
Toast, Inc. operates a cloud-based digital technology platform serving the restaurant industry across the United States and international markets.
6. Arista Networks, Inc. (NYSE:ANET)
On May 15, 2026, Raymond James analyst Simon Leopold upgraded Arista Networks, Inc. (NYSE:ANET) to Outperform from Market Perform with a $164 price target. The firm said Arista’s revenue growth profile is expected to improve in 2027 and beyond as the company expands into newer applications such as scale-across networking and gains additional share in AI backend and campus networking markets. The firm further added that emerging AI-related growth trends tied to inference and reasoning workloads appear well aligned with Arista’s strengths. The firm believes increasingly distributed AI clusters are driving greater volumes and unpredictability in east-west traffic, increasing the importance of intelligent networking solutions.
Truist analyst Matthew Niknam also raised the firm’s price target on Arista Networks, Inc. to $175 from $161 while maintaining a Buy rating on the shares. The firm said Arista’s Q1 results reflected accelerating revenue growth and viewed the stock’s weakness following earnings as an attractive buying opportunity.
On May 5, 2026, Arista Networks, Inc. reported Q1 adjusted EPS of 87c, versus the consensus estimate of 81c. Revenue totaled $2.71B, compared to the consensus estimate of $2.62B. Chairperson and CEO Jayshree Ullal said the company delivered a strong start to 2026, supported by both financial performance and Arista’s industry-leading net promoter score. Ullal added that the company remains well-positioned to address growing demand for secure networking solutions spanning client, campus, cloud, and AI infrastructure environments.
Arista Networks, Inc. develops and sells cloud and AI-focused networking solutions for data center, campus, and routing applications across global markets.
5. Figma, Inc. (NYSE:FIG)
On May 14, 2026, Figma, Inc. (NYSE:FIG) reported Q1 adjusted EPS of 10c, versus the consensus estimate of 6c. Revenue totaled $333.4M, compared to the consensus estimate of $316.02M. Co-founder and CEO Dylan Field said revenue growth accelerated for the second consecutive quarter as customers continued expanding their use of Figma’s platform. Field added that as code becomes increasingly commoditized, design and human judgment are becoming more important competitive differentiators in digital product development.
Figma’s Net Dollar Retention Rate reached 139% as of March 31, 2026, up three percentage points sequentially and marking the company’s highest level in more than two years. The company ended the quarter with 15,218 paid customers generating more than $10,000 in annual recurring revenue, representing 37% year-over-year growth and an acceleration from the prior quarter. Figma also reported 1,525 customers with more than $100,000 in ARR, up 48% year over year. Total paid customers increased 54% year over year to approximately 690,000. Figma said new Pro team conversions grew more than 150% year over year during the quarter, driven in part by continued adoption of its AI-related features.
Following the earnings report, Piper Sandler analyst Billy Fitzsimmons lowered the firm’s price target on Figma, Inc. to $30 from $35 while maintaining an Overweight rating on the shares. The firm highlighted 46% year-over-year revenue growth, a 5.5% revenue beat, and strong net dollar retention. Piper added that Q2 revenue growth guidance came in well above consensus expectations and argued the results push back against concerns that AI competition will materially slow growth in the near term.
Figma, Inc. develops a browser-based collaborative platform for designing, prototyping, and building digital experiences.
4. The New York Times Company (NYSE:NYT)
On May 7, 2026, Deutsche Bank analyst Benjamin Soff raised the firm’s price target on The New York Times Company (NYSE:NYT) to $95 from $75 while maintaining a Buy rating on the shares following the company’s earnings report. The firm said digital advertising growth continues to outperform expectations.
On May 6, 2026, The New York Times Company reported Q1 adjusted EPS of 61c, versus the consensus estimate of 47c. Revenue totaled $712.2M, compared to the consensus estimate of $700.25M. Digital-only subscription revenue increased 16.1% year over year, supported by growth in both digital-only subscribers and average revenue per user. The company added approximately 310,000 net digital-only subscribers during the quarter, bringing its total subscriber base to 13.08 million. Digital-only ARPU rose 2.4% year over year to $9.77. President and CEO Meredith Kopit Levien said the quarter reflected continued demand for the company’s journalism and premium lifestyle content offerings. Levien added that The New York Times remains focused on building direct consumer relationships and daily engagement habits across its subscriber base.
The company said it remains confident that 2026 will deliver another year of revenue growth, adjusted operating profit growth, margin expansion, and strong free cash flow generation. For Q2, The New York Times expects total subscription revenue growth of 10%-12%, with digital-only subscription revenue growth of 14%-17%. The company also expects advertising revenue growth in the high-single-digit range and digital advertising growth in the high-teens, while adjusted operating costs are projected to increase 8%-9%.
The New York Times Company creates and distributes news and information products globally through The New York Times Group and The Athletic segments.
3. Globus Medical, Inc. (NYSE:GMED)
On May 8, 2026, Needham raised the firm’s price target on Globus Medical, Inc. (NYSE:GMED) to $117 from $114 while maintaining a Buy rating on the shares.
Meanwhile, Wells Fargo analyst Larry Biegelsen lowered the firm’s price target on Globus Medical, Inc. to $103 from $104 while maintaining an Overweight rating on the shares. The firm noted that Globus Medical delivered Q1 revenue and EPS ahead of both its own estimates and broader consensus expectations.
Globus Medical, Inc. reported Q1 EPS of $1.12, versus the consensus estimate of 92c. Revenue totaled $759.85M, compared to the consensus estimate of $740.83M. President and CEO Keith Pfeil said the company began 2026 with strong momentum, highlighted by 27% overall revenue growth and record first-quarter earnings. Organic revenue increased more than 13%, supported by market share gains and strong procedural volumes in the core spine business, while the Enabling Technologies segment continued expanding its customer base. Pfeil added that manufacturing and supply chain execution, structural cost actions, and operating leverage from higher volumes contributed to margin expansion that outpaced revenue growth. The company said its strategic focus remains centered on improving surgical outcomes through an integrated ecosystem that combines patient selection, surgical techniques, implants, and enabling technologies.
Globus Medical also raised its FY26 EPS outlook to $4.70-$4.80 from a prior range of $4.40-$4.50. Consensus estimates were $4.47. The company reaffirmed its FY26 revenue guidance of $3.18B-$3.22B, compared to consensus expectations of $3.2B.
Globus Medical, Inc. develops and commercializes musculoskeletal healthcare solutions and surgical technologies in the United States and international markets.
2. Rocket Lab Corporation (NASDAQ:RKLB)
On May 12, 2026, Deutsche Bank raised the firm’s price target on Rocket Lab Corporation (NASDAQ:RKLB) to $120 from $73 while maintaining a Buy rating on the shares following the company’s earnings report. The firm said demand trends across Rocket Lab’s business continue to strengthen.
Clear Street also raised the firm’s price target on Rocket Lab Corporation to $98 from $88 while maintaining a Buy rating on the shares. The firm said Rocket Lab is continuing to gain momentum after reporting record Q1 revenue that exceeded expectations by 5%, supported by strength across both launch services and space systems operations. Clear Street also highlighted several positive developments from the quarter, including momentum surrounding the Neutron program and a record backlog position. The firm added that it expects the stock to react positively to the results.
On May 7, 2026, Rocket Lab Corporation reported Q1 EPS of (7c), in line with the consensus estimate. Revenue totaled $200.35M, compared to the consensus estimate of $189.68M. The company said it delivered another quarter of record financial performance, generating more than $200M in revenue while continuing execution across launch and space systems programs. Rocket Lab also pointed to a record number of major contract wins and recently completed strategic acquisitions. Rocket Lab ended the quarter with a backlog of $2.2B and said it currently has access to more than $2B in liquidity, which it believes positions the company well for continued growth and future M&A activity.
Rocket Lab Corporation provides launch services and space systems solutions for commercial and government customers globally.
1. NVIDIA Corporation (NASDAQ:NVDA)
On May 14, 2026, RBC Capital maintained an Outperform rating and a $250 price target on NVIDIA Corporation (NASDAQ:NVDA) ahead of the company’s Q1 results. The firm expects Nvidia’s Q1 results and Q2 outlook to follow a pattern similar to the prior three quarters, with a 3%-5% beat-and-raise driven by AI compute demand that continues to exceed supply. RBC added that visibility into demand trends now extends well into 2027, though component shortages and power and infrastructure constraints remain key near-term challenges.
Meanwhile, TD Cowen raised the firm’s price target on NVIDIA Corporation to $275 from $235 while maintaining a Buy rating on the shares as part of an off-cycle semiconductor preview. The firm said AI infrastructure spending continues to move higher as investors search for the next bottlenecks in AI buildouts. TD Cowen noted that this has created a divergence within the AI infrastructure trade, with optical networking companies outperforming on expectations of future shortages while some accelerator-related names have lagged. The firm also increased its long-term estimates and now projects data center silicon spending could reach $1.3T by 2030, up from its prior $1.2T forecast.
Similarly, UBS raised the firm’s price target on NVIDIA Corporation to $275 from $245 while maintaining a Buy rating on the shares. UBS expects Nvidia to report approximately $81B in revenue for the April quarter and guide for roughly $90B-$91B in revenue for the July quarter, supported by continued strong demand for Blackwell products and an expected ramp in Rubin rack shipments beginning around September or October.
NVIDIA Corporation operates as an AI infrastructure and semiconductor company through its Compute & Networking and Graphics segments.
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