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Take the Zacks Approach to Beat the Market: Uber, Baidu, AssetMark in Focus
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Two of the three most widely followed indexes ended the week in the green. The Nasdaq Composite advanced 4.4%, while the S&P 500 gained 1.4%. However, the Dow Jones Industrial Average closed the week in negative territory with a 0.2% loss.
Even though central banks and policymakers worldwide have been sending reassuring signals to calm markets down, the crisis unfolding in the banking sector and fears of an impending recession dominated investor mood last week. Major inflation indicators coming in line with expectations and showing signs of slowing down helped the market rebound. All eyes are currently set on how the turmoil in the banking sector unfolds.
Treasury yields took a deep dive early last week, with investors rushing to the safety of the bond market, but stabilized later. Market participants are currently pricing in a nominal increase or no change to the current levels of interest rate at the next Fed meeting.
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:
Terns and Ventyx Surge Following Zacks Rank Upgrade
Shares of Terns Pharmaceuticals, Inc. (TERN - Free Report) have surged 19% since it was upgraded to a Zacks Rank #2 (Buy) on January 6.
Another stock, Ventyx Biosciences, Inc. (VTYX - Free Report) , which was also upgraded to a Zacks Rank #2 on January 3, has returned 11.8% 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 stocks here >>>
Zacks Recommendation Upgrade Drives AssetMark and Baidu Higher
Shares of AssetMark Financial Holdings, Inc. (AMK - Free Report) and Baidu, Inc. (BIDU - Free Report) have advanced 30.9% and 28.4% since their Zacks Recommendation was upgraded to Outperform on January 5 and January 2, 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 29% 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 26.1% 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 Intuit and Clorox Make Significant Gains
Intuit Inc. (INTU - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), jumped 7.6% over the past 12 weeks. The Clorox Company (CLX - Free Report) followed Intuit with 6.9% 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 3.5% over the past 12 weeks. Another ECDP stock, The Hershey Company (HSY - Free Report) , has climbed 3.1% 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, Baidu, AssetMark in Focus
Two of the three most widely followed indexes ended the week in the green. The Nasdaq Composite advanced 4.4%, while the S&P 500 gained 1.4%. However, the Dow Jones Industrial Average closed the week in negative territory with a 0.2% loss.
Even though central banks and policymakers worldwide have been sending reassuring signals to calm markets down, the crisis unfolding in the banking sector and fears of an impending recession dominated investor mood last week. Major inflation indicators coming in line with expectations and showing signs of slowing down helped the market rebound. All eyes are currently set on how the turmoil in the banking sector unfolds.
Treasury yields took a deep dive early last week, with investors rushing to the safety of the bond market, but stabilized later. Market participants are currently pricing in a nominal increase or no change to the current levels of interest rate at the next Fed meeting.
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:
Terns and Ventyx Surge Following Zacks Rank Upgrade
Shares of Terns Pharmaceuticals, Inc. (TERN - Free Report) have surged 19% since it was upgraded to a Zacks Rank #2 (Buy) on January 6.
Another stock, Ventyx Biosciences, Inc. (VTYX - Free Report) , which was also upgraded to a Zacks Rank #2 on January 3, has returned 11.8% 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 stocks here >>>
Check Terns Pharmaceutical’s historical EPS and Sales here>>>
Check Ventyx’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrade Drives AssetMark and Baidu Higher
Shares of AssetMark Financial Holdings, Inc. (AMK - Free Report) and Baidu, Inc. (BIDU - Free Report) have advanced 30.9% and 28.4% since their Zacks Recommendation was upgraded to Outperform on January 5 and January 2, 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 29% 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 26.1% 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 Intuit and Clorox Make Significant Gains
Intuit Inc. (INTU - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), jumped 7.6% over the past 12 weeks. The Clorox Company (CLX - Free Report) followed Intuit with 6.9% 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, Hershey’s Outperform Peers
Illinois Tool Works Inc. (ITW - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 3.5% over the past 12 weeks. Another ECDP stock, The Hershey Company (HSY - Free Report) , has climbed 3.1% 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 The Hershey Company’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.