Stocks plummeted Monday after May’s CPI data failed to show any signs of cooling inflation. The higher-than-projected consumer price index data brought a wave of selling on Friday and Monday that finally sent the S&P 500 into an official bear market, down more than 20% from its peaks.

The benchmark index entered a technical bear market for the first time since the initial covid selloff in March of 2020, as the bullish line finally broke after being tested a few times so far this year. Meanwhile, the Nasdaq has tumbled over 30% from its November records, as the technology stocks that soared during the covid boom are recalibrated for a rising rate environment.

Wall Street now waits to see what the Fed will do on the interest rate front with the central bank meeting on June 14 and 15. Following the hot CPI print, traders have ramped up their bets that the Fed will hike rates by 0.75% mid-week, above the previous expectation of 0.50%.

The current situation is leaving many investors upset and nervous. But there are pockets of the stock market that have outperformed during 2022. And those with long-term horizons might want to consider buying strong stocks right now, especially since staying in cash comes with an 8.5% inflation tax at the moment.

Here’s how investors can utilize the Filtered Zacks Rank 5 Stock Screen to find potential winners to help navigate the market downturn. 

Zacks Rank #1 (Strong Buy) stocks outperform the market in both good and bad times. However, there are over 200 stocks that earn a Zacks Rank #1 at any given time. Therefore, it’s helpful to understand how to apply filters to the Zacks Rank in order to narrow the list down to a more manageable and tradable set of stocks.

Parameters

Clearly, there are only three items on this screen. But together, these three filters can result in some impressive returns.

• Zacks Rank equal to 1

Starting with a Zacks Rank #1 is often a strong jumping off point because it boasts an average annual return of roughly 24.4% per year since 1988.

• % Change (Q1) Est. over 4 Weeks greater than 0

Positive current quarter estimate revisions over the last four weeks.

• % Broker Rating Change over 4 Week equal to Top # 5

Top 5 stocks with the best average broker rating changes over the last four weeks.

This strategy comes loaded with the Research Wizard and is called bt_sow_filtered zacks rank5. It can be found in the SoW (Screen of the Week) folder.

Here are two of the five stocks that qualified for the Filtered Zacks Rank 5 strategy today…

Sysco Corporation (SYY Quick QuoteSYY - Free Report)

Sysco Corporation is a wholesale food products powerhouse that services an array of industries that includes restaurants, healthcare, education, hotels, and many others “who prepare meals away from home.” Sysco’s portfolio features equipment and supplies for the foodservice and hospitality space, with roughly 350 distribution facilities worldwide to help serve over 650k customer locations.

Sysco shares are up 2% in 2022 to easily outpace its industry’s 8% decline and the benchmark. SYY has climbed 45% in the last five years, compared to its Food – Miscellaneous industry’s 13% fall.

Sysco’s revenue is projected to climb 33% in FY22 and another 8.5% in FY23, to help lift its adjusted earnings by 124% and 34%, respectively. Plus, Sysco is part of a small group of so-called Dividend Aristocrats, which are S&P 500 companies that have both paid and raised dividends for at least 25 straight years. SYY’s dividend yield comes in at 2.4% at the moment.

Black Stone Minerals, L.P. (BSM Quick QuoteBSM - Free Report)

Black Stone Minerals is one of the largest owners of oil and natural gas mineral interests in the U.S. Black Stone Minerals owns mineral interests and royalty interests in 41 states. BSM operates under the philosophy that its “large, diversified asset base and long-lived, non-cost-bearing mineral and royalty interests provide for stable to growing production and reserves over time, allowing the majority of generated cash flow to be distributed to unitholders.”

Black Stone Minerals on April 25 announced the approval of a cash distribution for common units attributable of $0.40 per unit, which marked a nearly 50% increase from its last payout. BSM’s dividend currently yields a whopping 10% to blow away its industry’s 6.7% average. Black Stone Minerals’ Energy and Pipeline - Master Limited Partnerships industry sits in the top 2% of over 250 Zacks industries right now. And BSM shares have climbed 115% in the past two years vs. its industry’s 80%.

See the rest of the stocks on this list and start trading the Filtered Zacks Rank 5 (or any of our other strategies) in your own account. Remember, the key to successful screening is finding screens that have produced profitable results in the past. And that's exactly what you get with the Research Wizard stock picking and backtesting program.

Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.

Click here to sign up for a free trial to the Research Wizard today.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance/