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Beat the Market the Zacks Way: Oracle, Medtronic, Uber in Focus
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The three most widely followed indexes ended the week in the green, rebounding from recent weekly drops. The Nasdaq Composite advanced 2.6%, while the S&P 500 and the Dow Jones Industrial Average gained 1.9% and 1.8%, respectively. The S&P 500 snapped a three-week losing streak and the Dow completed its first week of gains since late January.
Market participants seem to have already priced in the possibility of future interest rate hikes, and are currently looking for direction from the Fed as to how a soft landing of the economy can be achieved despite their tight monetary policy. Various dovish comments coming in from Fed officials reassured investors and triggered a late-week rally.
Treasury yields hit decade-highs throughout the week, but investors seemed to be ignoring that. On the contrary, they took well to the resilient numbers coming in from the manufacturing and services sectors that triggered rising yields, and looked at the upside.
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:
Commercial Metals and PhenixFin Surge Following Zacks Rank Upgrade
Shares of Commercial Metals Company (CMC - Free Report) have surged 14.9% since it was upgraded to a Zacks Rank #1 (Strong Buy) on December 20.
Another stock, PhenixFIN Corporation (PFX - Free Report) , which was also upgraded to a Zacks Rank #1 on December 21, has returned 13.4% 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 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 Sterling Infra and South32 Higher
Shares of Sterling Infrastructure, Inc. (STRL - Free Report) and South32 Limited (SOUHY - Free Report) have advanced 28.1% and 20.8% since their Zacks Recommendation was upgraded to Outperform on December 22 and December 23, 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 Stocks Uber, Axon Soar High
Shares of Uber Technologies, Inc. (UBER - Free Report) , which belongs to the Zacks Focus List, have risen 30.7% over the past 12 weeks. 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 28.7% over the past 12 weeks.
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 Oracle and Ball Make Significant Gains
Oracle Corporation (ORCL - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), jumped 11.5% over the past 12 weeks. Ball Corporation (BALL - Free Report) followed Oracle with 5.9% 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.
Illinois Tool Works Inc. (ITW - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 8% over the past 12 weeks. Another ECDP stock, Medtronic plc (MDT - Free Report) , has climbed 7.2% 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: Shutterstock
Beat the Market the Zacks Way: Oracle, Medtronic, Uber in Focus
The three most widely followed indexes ended the week in the green, rebounding from recent weekly drops. The Nasdaq Composite advanced 2.6%, while the S&P 500 and the Dow Jones Industrial Average gained 1.9% and 1.8%, respectively. The S&P 500 snapped a three-week losing streak and the Dow completed its first week of gains since late January.
Market participants seem to have already priced in the possibility of future interest rate hikes, and are currently looking for direction from the Fed as to how a soft landing of the economy can be achieved despite their tight monetary policy. Various dovish comments coming in from Fed officials reassured investors and triggered a late-week rally.
Treasury yields hit decade-highs throughout the week, but investors seemed to be ignoring that. On the contrary, they took well to the resilient numbers coming in from the manufacturing and services sectors that triggered rising yields, and looked at the upside.
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:
Commercial Metals and PhenixFin Surge Following Zacks Rank Upgrade
Shares of Commercial Metals Company (CMC - Free Report) have surged 14.9% since it was upgraded to a Zacks Rank #1 (Strong Buy) on December 20.
Another stock, PhenixFIN Corporation (PFX - Free Report) , which was also upgraded to a Zacks Rank #1 on December 21, has returned 13.4% 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 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 Commercial Metals’ historical EPS and Sales here>>>
Check PhenixFin’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrade Drives Sterling Infra and South32 Higher
Shares of Sterling Infrastructure, Inc. (STRL - Free Report) and South32 Limited (SOUHY - Free Report) have advanced 28.1% and 20.8% since their Zacks Recommendation was upgraded to Outperform on December 22 and December 23, 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 Stocks Uber, Axon Soar High
Shares of Uber Technologies, Inc. (UBER - Free Report) , which belongs to the Zacks Focus List, have risen 30.7% over the past 12 weeks. 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 28.7% over the past 12 weeks.
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 Oracle and Ball Make Significant Gains
Oracle Corporation (ORCL - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), jumped 11.5% over the past 12 weeks. Ball Corporation (BALL - Free Report) followed Oracle with 5.9% 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 Illinois Tool Works, Medtronic Outperform Peers
Illinois Tool Works Inc. (ITW - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 8% over the past 12 weeks. Another ECDP stock, Medtronic plc (MDT - Free Report) , has climbed 7.2% 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 Illinois Tool Works’ dividend history here>>>
Check Medtronic’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.