I have long held an affection for zero-debt stocks. While some may argue that companies with zero debt aren’t optimizing their capital structures for growth, I firmly believe that these businesses possess fortress-like balance sheets, providing stability and resilience in challenging economic times.

Recently, Fortune raised concerns about the federal government’s debt problem and its potential ramifications on the economy. The Peter G. Peterson Foundation warned about reduced public spending, loss of faith from private investors, and a threat to national security stemming from the increasing national debt.

“The group believes debt could lead to reduced public spending, private investors losing faith in America’s economy, a shrinking window of prosperity for U.S. families thanks to worsening housing and job markets, and a threat to national security,” Fortune reported the sentiment of the Peter G. Peterson Foundation, which focuses on fiscal solutions for the country.

However, not all experts view the debt problem as catastrophic. A critical consideration is whether the debt is generating a sufficient return. This notion equally applies to public companies. If they have debt, are they getting a sufficient return on it? Companies that make big acquisitions add billions of debt to their balance sheets, often without a worthwhile return on investment.

On the contrary, a business with zero debt is less likely to make imprudent acquisitions that boost revenues and little else, making them an attractive option for investors seeking stability and sustained growth.

Paccar (PCAR)

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Paccar (NASDAQ:PCAR) is a leading manufacturer of large trucks under the Kenworth, Peterbilt, and DAF brands, playing a crucial role in driving the U.S. economy. The stock has delivered an impressive performance, up more than 11% year-to-date and 130% over the past five years, surpassing the S&P 500 by 52%.