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Beat the Market the Zacks Way: Boeing, General Electric, AmerisourceBergen, Kimberly-Clark in Focus
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U.S. stocks edged higher on December 23, yet the S&P 500 and the Nasdaq registered a weekly loss as fears of a recession with the expected continuation of interest rate hikes battered investor confidence.
For the week, the S&P 500 and the Nasdaq declined 0.2% and 1.9%, respectively. Both indexes, in fact, posted their third consecutive weekly decline. However, the Dow managed to gain 0.9%.
U.S. stocks continued to gyrate for most of December and dashed hopes of a Santa Claus Rally. Investors remained worried that the Federal Reserve’s tightening measures could push the economy into a downturn.
The Fed increased interest rates by 50 basis points (bps) earlier this month. This followed four successive 75-bps hikes in an effort to tame the multi-decade high inflation.
What’s more, the Fed has pledged to keep hiking rates in 2023 as the economy still exhibits strength, leading to a possibility of an increase in consumer outlays.
With the Fed positioned to remain hawkish in the near term, the market is subject to bouts of volatility.
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:
Aravive, Renasant Soar Following Zacks Rank Upgrade
Shares of Aravive, Inc. (ARAV - Free Report) have gained 58.8% since it was upgraded to a Zacks Rank #2 (Buy) on October 12.
Another stock, Renasant Corporation (RNST - Free Report) , was upgraded to a Zacks Rank #2 on October 10 and has returned 17.9% 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 (Strong Buy) stocks here >>>
Zacks Recommendation Upgrade Drive CNH Industrial, Par Pacific Higher
Shares of CNH Industrial N.V. (CNHI - Free Report) and Par Pacific Holdings, Inc. (PARR - Free Report) have gained 36.2% and 14.9%, respectively, since their Zacks Recommendation was upgraded to Outperform on October 11 and October 14, 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 Boeing, General Electric Surge
Shares of The Boeing Company (BA - Free Report) , which belongs to the Zacks Focus List, have gained 56.2% over the past three months. The stock was added to the Focus List on March 23, 2020. Another Focus-List holding, General Electric Company (GE - Free Report) , which was added to the portfolio on May 18, 2021, has returned 32.1% 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 February 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 >>
AmerisourceBergen Corporation , a component of our Earnings Certain Admiral Portfolio (ECAP), surged 25.6% over the past three months. Kimberly-Clark Corporation (KMB - Free Report) followed AmerisourceBergen with 21.9% 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.
Quest Diagnostics Incorporated (DGX - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 27.4% over the past three months. Another ECDP stock, Illinois Tool Works Inc. (ITW - Free Report) , has returned 22.9% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid the 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: Bigstock
Beat the Market the Zacks Way: Boeing, General Electric, AmerisourceBergen, Kimberly-Clark in Focus
U.S. stocks edged higher on December 23, yet the S&P 500 and the Nasdaq registered a weekly loss as fears of a recession with the expected continuation of interest rate hikes battered investor confidence.
For the week, the S&P 500 and the Nasdaq declined 0.2% and 1.9%, respectively. Both indexes, in fact, posted their third consecutive weekly decline. However, the Dow managed to gain 0.9%.
U.S. stocks continued to gyrate for most of December and dashed hopes of a Santa Claus Rally. Investors remained worried that the Federal Reserve’s tightening measures could push the economy into a downturn.
The Fed increased interest rates by 50 basis points (bps) earlier this month. This followed four successive 75-bps hikes in an effort to tame the multi-decade high inflation.
What’s more, the Fed has pledged to keep hiking rates in 2023 as the economy still exhibits strength, leading to a possibility of an increase in consumer outlays.
With the Fed positioned to remain hawkish in the near term, the market is subject to bouts of volatility.
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:
Aravive, Renasant Soar Following Zacks Rank Upgrade
Shares of Aravive, Inc. (ARAV - Free Report) have gained 58.8% since it was upgraded to a Zacks Rank #2 (Buy) on October 12.
Another stock, Renasant Corporation (RNST - Free Report) , was upgraded to a Zacks Rank #2 on October 10 and has returned 17.9% 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 (Strong Buy) stocks here >>>
Check Aravive’s historical EPS and Sales here>>>
Check Renasant’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrade Drive CNH Industrial, Par Pacific Higher
Shares of CNH Industrial N.V. (CNHI - Free Report) and Par Pacific Holdings, Inc. (PARR - Free Report) have gained 36.2% and 14.9%, respectively, since their Zacks Recommendation was upgraded to Outperform on October 11 and October 14, 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 Boeing, General Electric Surge
Shares of The Boeing Company (BA - Free Report) , which belongs to the Zacks Focus List, have gained 56.2% over the past three months. The stock was added to the Focus List on March 23, 2020. Another Focus-List holding, General Electric Company (GE - Free Report) , which was added to the portfolio on May 18, 2021, has returned 32.1% 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 February 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 AmerisourceBergen, Kimberly-Clark Deliver Solid Returns
AmerisourceBergen Corporation , a component of our Earnings Certain Admiral Portfolio (ECAP), surged 25.6% over the past three months. Kimberly-Clark Corporation (KMB - Free Report) followed AmerisourceBergen with 21.9% 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 Quest Diagnostics, Illinois Tool Works Witnesses Impressive Gains
Quest Diagnostics Incorporated (DGX - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 27.4% over the past three months. Another ECDP stock, Illinois Tool Works Inc. (ITW - Free Report) , has returned 22.9% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid the heightened market volatility contributed to this performance.
Check Quest Diagnostics’ 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.