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Take the Zacks Approach to Beat the Market: Automatic Data Processing, Fiserv, Deere in Focus
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Wall Street closed a winning week after three straight weeks of losses. All three major indexes ended the week with gains. The Dow, the S&P 500 and the tech-heavy Nasdaq rose 2%, 1.5% and 0.7%, respectively.
The week’s activities were dominated by multiple reports on the economy's labor side. With a cool-down suggested by the reports, investors expected the Fed would go easy on the monetary policy moving forward. But hopes dissipated with multiple Fed officials hinting that steep rate hikes would continue until economic data gave a clearer picture of slowing down the job market and, more importantly, inflation.
The losses in the last three days offset the gains made in the first two days of the week, but the market managed to end in the green. Bond yields rose, adversely impacting growth stocks.
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:
Liberty Energy, Patterson-UTI Energy Soar Following Zacks Rank Upgrade
Shares of Liberty Energy Inc. (LBRT - Free Report) have gained 24.3% since it was upgraded to a Zacks Rank #1 (Strong Buy) on Jul 11.
Another stock, Patterson-UTI Energy, Inc. (PTEN - Free Report) , was upgraded to a Zacks Rank #2 (Buy) on Jul 14 and has returned 10.2% 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.
This stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally audited track record, with Zacks Rank #1 stocks generating an average annual return of +24.8% since 1988. You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Zacks Recommendation Upgrade Drives Home Bancorp, Aviat Networks Higher
Shares of Home Bancorp, Inc. (HBCP - Free Report) and Aviat Networks, Inc. (AVNW - Free Report) have gained 7.9% and 6.3% since their Zacks Recommendation was upgraded to Outperform on Jul 20 and Jul 18, 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 Model Portfolio Stocks Axon, Deere Rise
Shares of Axon Enterprise, Inc. (AXON - Free Report) , which belongs to the Zacks Focus List, have gained 30.8% over the past three months. The stock was added to the Focus List on Jun 3, 2020. Another Focus-List holding, Deere & Company (DE - Free Report) , which was added to the portfolio on Jul 25,2017, has returned 19.6% over the past three months.
The Zacks Focus List is a model portfolio of 50 hand-picked stocks that possess the right fundamental ingredients to outperform the market over the next 12 months. These 50 stocks are picked from a long list of stocks with the highest Zacks Rank.
Since its inception on Feb 1, 1996, the Focus List portfolio has delivered an annualized return of +12.9%.
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 >>
Fiserv, Inc. , a component of our Earnings Certain Admiral Portfolio (ECAP), has gained 4.8% over the past three months. FactSet Research Systems Inc. (FDS - Free Report) has followed Fiserv with 3.4% returns.
ECAP is a model portfolio of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks.
With little to no turnover and annual rebalance periodicity, the 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 Automatic Data Processing, Illinois Tool Works Outperform
Automatic Data Processing, Inc. (ADP - Free Report) , part of our Earnings Certain Dividend Portfolio (ECDP), has returned 6.1% over the past three months. Another ECDP stock, Illinois Tool Works Inc. (ITW - Free Report) , has returned 3.8% 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.
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 ECDP has consistently outperformed the S&P 500 Dividend Aristocrats ETF (NOBL - Free Report) .
Image: Shutterstock
Take the Zacks Approach to Beat the Market: Automatic Data Processing, Fiserv, Deere in Focus
Wall Street closed a winning week after three straight weeks of losses. All three major indexes ended the week with gains. The Dow, the S&P 500 and the tech-heavy Nasdaq rose 2%, 1.5% and 0.7%, respectively.
The week’s activities were dominated by multiple reports on the economy's labor side. With a cool-down suggested by the reports, investors expected the Fed would go easy on the monetary policy moving forward. But hopes dissipated with multiple Fed officials hinting that steep rate hikes would continue until economic data gave a clearer picture of slowing down the job market and, more importantly, inflation.
The losses in the last three days offset the gains made in the first two days of the week, but the market managed to end in the green. Bond yields rose, adversely impacting growth stocks.
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:
Liberty Energy, Patterson-UTI Energy Soar Following Zacks Rank Upgrade
Shares of Liberty Energy Inc. (LBRT - Free Report) have gained 24.3% since it was upgraded to a Zacks Rank #1 (Strong Buy) on Jul 11.
Another stock, Patterson-UTI Energy, Inc. (PTEN - Free Report) , was upgraded to a Zacks Rank #2 (Buy) on Jul 14 and has returned 10.2% 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.
This stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally audited track record, with Zacks Rank #1 stocks generating an average annual return of +24.8% since 1988. You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check Liberty Energy’s historical EPS and Sales here>>>
Check Patterson-UTI Energy’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrade Drives Home Bancorp, Aviat Networks Higher
Shares of Home Bancorp, Inc. (HBCP - Free Report) and Aviat Networks, Inc. (AVNW - Free Report) have gained 7.9% and 6.3% since their Zacks Recommendation was upgraded to Outperform on Jul 20 and Jul 18, 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 Model Portfolio Stocks Axon, Deere Rise
Shares of Axon Enterprise, Inc. (AXON - Free Report) , which belongs to the Zacks Focus List, have gained 30.8% over the past three months. The stock was added to the Focus List on Jun 3, 2020. Another Focus-List holding, Deere & Company (DE - Free Report) , which was added to the portfolio on Jul 25,2017, has returned 19.6% over the past three months.
The Zacks Focus List is a model portfolio of 50 hand-picked stocks that possess the right fundamental ingredients to outperform the market over the next 12 months. These 50 stocks are picked from a long list of stocks with the highest Zacks Rank.
Since its inception on Feb 1, 1996, the Focus List portfolio has delivered an annualized return of +12.9%.
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 Fiserv, Factset Witness Steady Growth
Fiserv, Inc. , a component of our Earnings Certain Admiral Portfolio (ECAP), has gained 4.8% over the past three months. FactSet Research Systems Inc. (FDS - Free Report) has followed Fiserv with 3.4% returns.
ECAP is a model portfolio of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks.
With little to no turnover and annual rebalance periodicity, the 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 Automatic Data Processing, Illinois Tool Works Outperform
Automatic Data Processing, Inc. (ADP - Free Report) , part of our Earnings Certain Dividend Portfolio (ECDP), has returned 6.1% over the past three months. Another ECDP stock, Illinois Tool Works Inc. (ITW - Free Report) , has returned 3.8% 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 Automatic Data Processing’s dividend history here>>>
Check Illinois Tool Works’ 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 ECDP has consistently outperformed the S&P 500 Dividend Aristocrats ETF (NOBL - Free Report) .
Click here to access this portfolio on Zacks Advisor Tools.