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Take the Zacks Approach to Beat the Market: Uber, Starbucks, Livent, Carter Bankshares in Focus
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The three most widely followed indexes closed their fifth negative week in the last six as the brutal selloff in the markets continued. The tech-heavy Nasdaq lost 5.1% for the week, while the S&P 500 and the Dow Jones Industrial Average fell 4.7% and 4%, respectively.
The Fed raised interest rates by 75 bps on Wednesday and indicated that it would keep raising rates, stoking fears of an impending recession. Bond yields kept rising, with the U.S. 10-year treasury note hitting its highest level since 2010. The British pound fell to a three-decade low compared to the dollar, flaring up concerns that the economic slowdown may be global in nature.
The Dow closed below 30,000 for the first time since June 17, while the S&P 500 dipped below its mid- June low briefly on Friday. With the market currently lacking confidence in the Fed, as to whether it will be able to attain a soft landing of the economy, the summer rebound of the market seems to be a thing of the past.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research has 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:
Carter Bankshares, Alliance Resource Soar Following Zacks Rank Upgrade
Shares of Carter Bankshares, Inc. (CARE - Free Report) have gained 24.3% since it was upgraded to a Zacks Rank #1 (Strong Buy) on July 7.
Another stock, Alliance Resource Partners, L.P. (ARLP - Free Report) , was upgraded to a Zacks Rank #1 on July 8 and has returned 12.6% 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 >>>
Shares of Livent Corporation and Titan Machinery Inc. (TITN - Free Report) have gained 37.9% and 19.5%, respectively, since their Zacks Recommendation was upgraded to Outperform on July 4 and July 6, 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 Uber, Axon Surge
Shares of Uber Technologies, Inc. (UBER - Free Report) , which belongs to the Zacks Focus List, have gained nearly 36% over the past three months. The stock was added to the Focus List on August 16, 2019. Another Focus-List holding, Axon Enterprise, Inc. (AXON - Free Report) , which was added to the portfolio on June 3, 2020, has returned 21.8% 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 Fiserv, Automatic Data Processing Deliver Solid Returns
Fiserv, Inc. , a component of our Earnings Certain Admiral Portfolio (ECAP), has surged 10.1% over the past three months. Automatic Data Processing, Inc. (ADP - Free Report) has followed Fiserv with 9.6% 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 Starbucks, J. M. Smucker Witness Impressive Gains
Starbucks Corporation (SBUX - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 10.2% over the past three months. Another ECDP stock, The J. M. Smucker Company (SJM - Free Report) , has returned 9.9% 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
Take the Zacks Approach to Beat the Market: Uber, Starbucks, Livent, Carter Bankshares in Focus
The three most widely followed indexes closed their fifth negative week in the last six as the brutal selloff in the markets continued. The tech-heavy Nasdaq lost 5.1% for the week, while the S&P 500 and the Dow Jones Industrial Average fell 4.7% and 4%, respectively.
The Fed raised interest rates by 75 bps on Wednesday and indicated that it would keep raising rates, stoking fears of an impending recession. Bond yields kept rising, with the U.S. 10-year treasury note hitting its highest level since 2010. The British pound fell to a three-decade low compared to the dollar, flaring up concerns that the economic slowdown may be global in nature.
The Dow closed below 30,000 for the first time since June 17, while the S&P 500 dipped below its mid- June low briefly on Friday. With the market currently lacking confidence in the Fed, as to whether it will be able to attain a soft landing of the economy, the summer rebound of the market seems to be a thing of the past.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research has 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:
Carter Bankshares, Alliance Resource Soar Following Zacks Rank Upgrade
Shares of Carter Bankshares, Inc. (CARE - Free Report) have gained 24.3% since it was upgraded to a Zacks Rank #1 (Strong Buy) on July 7.
Another stock, Alliance Resource Partners, L.P. (ARLP - Free Report) , was upgraded to a Zacks Rank #1 on July 8 and has returned 12.6% 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 Carter Bankshares’ historical EPS and Sales here>>>
Check Alliance Resource’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrade Drives Livent, Titan Machinery Higher
Shares of Livent Corporation and Titan Machinery Inc. (TITN - Free Report) have gained 37.9% and 19.5%, respectively, since their Zacks Recommendation was upgraded to Outperform on July 4 and July 6, 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 Uber, Axon Surge
Shares of Uber Technologies, Inc. (UBER - Free Report) , which belongs to the Zacks Focus List, have gained nearly 36% over the past three months. The stock was added to the Focus List on August 16, 2019. Another Focus-List holding, Axon Enterprise, Inc. (AXON - Free Report) , which was added to the portfolio on June 3, 2020, has returned 21.8% 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 Fiserv, Automatic Data Processing Deliver Solid Returns
Fiserv, Inc. , a component of our Earnings Certain Admiral Portfolio (ECAP), has surged 10.1% over the past three months. Automatic Data Processing, Inc. (ADP - Free Report) has followed Fiserv with 9.6% 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 Starbucks, J. M. Smucker Witness Impressive Gains
Starbucks Corporation (SBUX - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 10.2% over the past three months. Another ECDP stock, The J. M. Smucker Company (SJM - Free Report) , has returned 9.9% 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 Starbucks’ dividend history here>>>
Check J.M. Smucker’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 ECDP has consistently outperformed the S&P 500 Dividend Aristocrats ETF (NOBL - Free Report) .
Click here to access this portfolio on Zacks Advisor Tools.