Last week, the tech-heavy Nasdaq Composite gained 0.96%, whereas The Dow Jones Industrial Average declined by 1.29%. The S&P 500 remains unchanged. Market participants are concerned about the U.S.-China trade war and mixed economic data.
The Department of Labor reported the consumer price index (CPI) rose 0.3% last month, the largest rise in seven months after advancing 0.2% for four straight months. The producer price index (PPI) increased 3% last month compared to a 2.6% rise in October. Despite the seemingly stubborn state of inflation, which is progressing against the U.S. central bank's 2% target, market participants are hopeful of another round of reduction in the key lending rate in December to support the labor market that has been cooling.
Investors are hopeful that the solid fundamentals of the U.S. economy will pave the way for a soft landing.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements:
Enerflex and Snap-on Following Zacks Rank Upgrade
Shares of Enerflex Ltd. EFXT have gained 45.4% (versus the S&P 500’s 3.8% increase) since it was upgraded to a Zacks Rank #2 (Buy) on October 17.
Another stock, Snap-on Incorporated SNA, which was upgraded to a Zacks Rank #2 on October 18, has returned 8.3% (versus the S&P 500’s 3.8% increase) since then.
Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
A hypothetical portfolio of Zacks Rank # 1 (Strong Buy) stocks returned +21.6% in the year-to-date period through November 4, 2024, vs. +28.3% for the S&P 500 index and +18.6% for the equal-weight version of the S&P 500 index.
This hypothetical portfolio returned +20.63% in 2023 vs. +24.83% for the S&P 500 index and +15% for the equal-weight S&P 500 index.
The portfolio of Zacks Rank #1 stocks is an equal-weight, while the S&P 500 index is a market-cap-weighted index that has been notably distorted by the concentrated performance of mega-cap stocks since late 2022.
The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by almost 13 percentage points since 1988 (through November 4, 2024, the Zacks # 1 Rank stocks generated an annualized average return of +24.1% since 1988 vs. +11.2% for the S&P 500 index).
You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check Enerflex’ historical EPS and Sales here>>>
Check Snap-on’s historical EPS and Sales here>>>
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Zacks Recommendation Upgrades Peapack-Gladstone Financial and The Greenbrier
Shares of Peapack-Gladstone Financial Corporation PGC and The Greenbrier Companies, Inc. GBX have advanced 13.4% (versus the S&P 500’s 4.6% increase) and 12.6% (versus the S&P 500’s 4.3% increase), since their Zacks Recommendation was upgraded to Outperform on October 24 and 25, respectively.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>
Zacks Focus List Stocks Shopify, Block Shoot Up
Shares of Shopify Inc. SHOP, which belongs to the Zacks Focus List, have gained 55.8% over the past 12 weeks. The stock was added to the Focus List on September 6, 2022. Another Focus-List holding, Block, Inc. SQ, which was added to the portfolio on March 28, 2017, has returned 39.8% over the past 12 weeks. The S&P 500 has advanced 7.3% over this period.
The Focus List portfolio returned +26.86% in 2024 (through November 30) vs. +28.09% for the S&P 500 index and +20.56% for the equal-weight S&P 500 index.
The 50-stock Zacks Focus List model portfolio returned +31.44% in 2023 vs. +26.28% for the S&P 500 index and +13.61% for the equal-weight S&P 500 index. In 2022, the portfolio produced -15.2% vs. the S&P 500 index’s -17.96%.
Since 2004, the Focus List portfolio has produced an annualized return of +12.11% (through November 30, 2024). This compares to a +10.55% annualized return for the S&P 500 index and +10.41% for the equal-weight version of the index in the same time period.
Unlock all of our powerful research, tools and analysis, including the Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Gain full access now >>
Zacks ECAP Stocks Walmart & Fiserv Make Significant Gains
Walmart Inc. WMT, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 17% over the past 12 weeks. Fiserv, Inc. FI has followed Walmart with 16.7% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned +5.62% in November 2024 vs. the S&P 500 index’s +5.87% return (IVV ETF).
For the year-to-date period (through November 2024), the portfolio returned +24.07% vs. +28.1% for the S&P 500 index.
In 2023, the portfolio returned +12.17% vs. +26.28% for the S&P 500 index. The portfolio returned -4.7% in 2022 vs. the S&P 500 index’s -17.96%.
With little to no turnover and annual rebalance periodicity, ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stocks Illinois Tool Works and Automatic Data Processing Outperform Peers
Illinois Tool Works Inc. ITW, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 6.7% over the past 12 weeks. Another ECDP stock, Automatic Data Processing, Inc. ADP, has also climbed 6.5% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
Check Illinois Tool Works' dividend history here>>>
Check Automatic Data Processing’s dividend history here>>>
With an extremely low beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk.
The Zacks Earnings Certain Dividend Portfolio (ECDP) returned +3.06% in November 2024 vs. the S&P 500 index’s +5.87% gain and the Dividend Aristocrats ETF’s (NOBL) +4.85%.
For the year-to-date period (through November 30th), the portfolio returned +15.55% vs. +28.1% for the S&P 500 index and +15.61% for NOBL.
The portfolio returned -0.9% in 2023 vs. +26.28% for the S&P 500 index and +8.11% for NOBL. The portfolio returned -2.3% in 2022 vs. -17.96% for the S&P 500 index and -8.34% for NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
Zacks Top 10 Stocks Stride Delivers Solid Returns
Stride, Inc. LRN, from the Zacks Top 10 Stocks for 2024, has jumped 78.9% year to date, which compares to the S&P 500 index’s +27.1% increase.
The Top 10 portfolio returned +71.88% this year through November 30, vs. +28.09% for the S&P 500 index and +20.56% for the equal-weight version of the index.
The Top 10 portfolio returned +25.15% in 2023 vs. +26.28% for the S&P 500 index.
Since 2012, the Top 10 portfolio has produced a cumulative return of +2,112.57% through November 30, 2024, vs. +475.56% for the S&P 500 index. The portfolio has produced an average return of +26.6% fom 2012 through November 30, 2024, vs. +12.83% for the S&P 500 index and +10.93% for the equal-weight version of the index.
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Snap-On Incorporated (SNA) : Free Stock Analysis Report
Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report
Stride, Inc. (LRN) : Free Stock Analysis Report
Fiserv, Inc. (FI) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
Peapack-Gladstone Financial Corporation (PGC) : Free Stock Analysis Report
Enerflex Ltd. (EFXT) : Free Stock Analysis Report
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