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Beat the Market the Zacks Way: Cal-Maine, ADP, General Mills in Focus
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The three most widely followed indexes ended a tumultuous week as fresh inflation numbers weighed on markets and investors closely monitored the global economic trends. The Dow Jones Industrial Average notched a 1.2% gain last week, while the S&P 500and the tech-heavy Nasdaq lost 1.6% and 3.1%, respectively.
The British economy remained a cause for concern. The IMF cut its global growth forecast for 2023, stating that most economies would feel like they were in a recession. Oil prices fell in what was to be their worst week since August 5, as OPEC decided to cut production.
The biggest talking points that impacted Wall Street last week were the headline inflation and core consumer price index numbers. With core CPI still moving in the wrong direction and the labor market remaining strong, expectations are that the Fed would not be deterred from stringent policy tightening in the near term.
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:
Cal-Maine, NexTier Soar Following Zacks Rank Upgrade
Shares of Cal-Maine Foods, Inc. (CALM - Free Report) have gained 13.3% since it was upgraded to a Zacks Rank #1 (Strong Buy) on July 21.
Another stock, NexTier Oilfield Solutions Inc. , was upgraded to a Zacks Rank #1 on July 26 and has returned 6.1% 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 Cheniere Energy, Inc. (LNG - Free Report) and Fomento Económico Mexicano, S.A.B. de C.V. (FMX - Free Report) have gained 27.5% and 6.1% since their Zacks Recommendation was upgraded to Outperform on July 25 and July 26, 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 ICF, Arcosa Surge
Shares of ICF International, Inc. (ICFI - Free Report) , which belongs to the Zacks Focus List, have gained 22.3% over the past three months. The stock was added to the Focus List on April 23, 2018. Another Focus-List holding, Arcosa, Inc. (ACA - Free Report) , which was added to the portfolio on January 6,2020, has returned 17.3% 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 AutoZone, Automatic Data Processing Deliver Decent Returns
The AutoZone, Inc. (AZO - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), jumped 5.4% over the past three months. Automatic Data Processing, Inc. (ADP - Free Report) followed AutoZone with 3.6% 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 J. M. Smucker, General Mills Witness Impressive Gains
The J. M. Smucker Company (SJM - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 9.6% over the past three months. Another ECDP stock, General Mills, Inc. (GIS - Free Report) , has climbed 6.3% 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: Cal-Maine, ADP, General Mills in Focus
The three most widely followed indexes ended a tumultuous week as fresh inflation numbers weighed on markets and investors closely monitored the global economic trends. The Dow Jones Industrial Average notched a 1.2% gain last week, while the S&P 500 and the tech-heavy Nasdaq lost 1.6% and 3.1%, respectively.
The British economy remained a cause for concern. The IMF cut its global growth forecast for 2023, stating that most economies would feel like they were in a recession. Oil prices fell in what was to be their worst week since August 5, as OPEC decided to cut production.
The biggest talking points that impacted Wall Street last week were the headline inflation and core consumer price index numbers. With core CPI still moving in the wrong direction and the labor market remaining strong, expectations are that the Fed would not be deterred from stringent policy tightening in the near term.
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:
Cal-Maine, NexTier Soar Following Zacks Rank Upgrade
Shares of Cal-Maine Foods, Inc. (CALM - Free Report) have gained 13.3% since it was upgraded to a Zacks Rank #1 (Strong Buy) on July 21.
Another stock, NexTier Oilfield Solutions Inc. , was upgraded to a Zacks Rank #1 on July 26 and has returned 6.1% 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 Cal-Maine Foods’ historical EPS and Sales here>>>
Check NexTier’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrade Drive Cheniere, Fomento Economico Higher
Shares of Cheniere Energy, Inc. (LNG - Free Report) and Fomento Económico Mexicano, S.A.B. de C.V. (FMX - Free Report) have gained 27.5% and 6.1% since their Zacks Recommendation was upgraded to Outperform on July 25 and July 26, 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 ICF, Arcosa Surge
Shares of ICF International, Inc. (ICFI - Free Report) , which belongs to the Zacks Focus List, have gained 22.3% over the past three months. The stock was added to the Focus List on April 23, 2018. Another Focus-List holding, Arcosa, Inc. (ACA - Free Report) , which was added to the portfolio on January 6,2020, has returned 17.3% 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 AutoZone, Automatic Data Processing Deliver Decent Returns
The AutoZone, Inc. (AZO - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), jumped 5.4% over the past three months. Automatic Data Processing, Inc. (ADP - Free Report) followed AutoZone with 3.6% 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 J. M. Smucker, General Mills Witness Impressive Gains
The J. M. Smucker Company (SJM - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 9.6% over the past three months. Another ECDP stock, General Mills, Inc. (GIS - Free Report) , has climbed 6.3% 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 J. M. Smucker’s dividend history here>>>
Check General Mills’ 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.