From Yahoo Finance: 2025-03-30 18:36:00

Debt-free mid-cap stocks present lucrative investment opportunities in the current high-interest-rate environment. Companies with no debt are more resilient and attractive, with more cash to reinvest in growth. Fund managers like Fundsmith Equity Fund emphasize the value of low-debt stocks for long-term success and higher valuations. Debt-free companies offer stability and growth potential amid rising interest rates.

The impact of high interest rates on companies has not been fully realized yet, as most debt was issued at lower rates. Refinancing debt at higher rates will increase costs, impacting profitability and cash flow. This could weaken long-term growth potential as companies have less cash to reinvest. The economy’s high interest rates, combined with new US administration policies, may lead to increased profitability impact on high-debt companies.

Chord Energy Corporation (NASDAQ:CHRD) is a debt-free mid-cap company specializing in crude oil and natural gas production. With a market cap of $6.67 billion and 56 hedge fund holders, it focuses on maximizing production efficiency in the Williston Basin. As interest rates remain high, debt-free companies like CHRD offer stability and resilience for investors seeking long-term growth. Chord Energy Corporation (CHRD) ranked ninth on the list of 11 Best Crude Oil Stocks To Buy Right Now. In 2024, CHRD generated $282 million in adjusted free cash flow, completed a successful merger with Enerplus, and returned $944 million to shareholders through aggressive share repurchases.

For 2025, CHRD plans to maintain disciplined capital allocation, targeting daily production of 152,000 to 153,000 barrels of oil equivalent. The company anticipates generating $860 million in free cash flow with a reinvestment rate of about 60%, supported by operational efficiency initiatives like extended lateral drilling.

CHRD ranks 2nd on the list of the 10 best debt-free mid-cap stocks to buy. While CHRD shows promise as an investment, AI stocks are seen as offering higher returns in a shorter time frame. Investors seeking a more promising AI stock trading at less than 5 times its earnings can explore the report on the cheapest AI stock.

Check out the report on 20 Best AI Stocks To Buy Now and 30 Best Stocks To Buy Now According to Billionaires for more investment opportunities. This article was originally published on Insider Monkey.



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