We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Beat the Market the Zacks Way: UnitedHealth, Novo Nordisk, Check Point Software in Focus
Read MoreHide Full Article
Last week, the S&P 500 and the Nasdaq Composite gained 0.5% and 0.9%, respectively. However, the Dow Jones Industrial Average declined 0.1% in the same period. Uncertainty over the Federal Reserve’s interest rate outlook and rising tension between Israel and Palestine have forced investors to seek safer asset classes over equity. A rise in long-dated treasury yield and mixed movement in the major indexes suggest market indecisiveness.
Following stronger-than-expected job data, the U.S. 10-year Treasury yield rose to 4.9% on October 6, the highest in 16 years. Nonfarm payrolls increased by 336,000, the unemployment rate rose 3.8%, and average hourly earnings grew by 0.2% compared to the street expectation of 170,000, 3.7% and 0.3%, respectively. Investors fear that a strong labor market could prompt the Federal Reserve to keep the interest rate high for a prolonged period or raise it as inflation remains above its target. High interest rates, labor conflict and a dysfunctional federal government added to the worries.
On the international front, geopolitical risks increased due to the recent conflict between Israel and the Palestinian militant group Hamas. The ongoing war between Russia and Ukraine has also impacted global supply chain and corporate profitability, thus impacting investor sentiment.
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:
Sovos Brands and Lincoln Educational Services Surge Following Zacks Rank Upgrade
Shares of Sovos Brands, Inc. have gained 21.8% (versus the S&P 500’s 5.1% decline) since it was upgraded to a Zacks Rank #2 (Buy) on July 27.
Another stock, Lincoln Educational Services Corporation (LINC - Free Report) , which was also upgraded to a Zacks Rank #2 (Buy) on July 28, has returned 21.4% (versus the S&P 500’s 4.5% fall) 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 >>>
A hypothetical portfolio of Zacks Rank #1 (Strong Buy) stocks returned +12.02% this year (through September 4th) vs. +18.2% for the S&P 500 index and +7.6% for the equal-weight S&P 500 index. The portfolio of Zacks Rank #1 stocks is an equal-weight portfolio, while the S&P 500 index is a market-cap-weighted index that has been notably distorted by the strong recent performance of mega-cap stocks.
We are not trying to cherry-pick here. But since this Zacks Model portfolio, consisting of Zacks Rank #1 stocks, is an equal-weight portfolio, the equal-weight S&P 500 index is the appropriate benchmark for comparison. Looked at this way, this portfolio has outperformed the index this year.
The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by more than 13 percentage points since 1988 (Through September 4th, 2023, the Zacks # 1 Rank stocks has generated an annualized return of +24.17% since 1988 vs. +10.82% for the S&P 500 index).
Zacks Recommendation Upgrades Consolidated Huron Consulting Group and Quanterix Corporation
Shares of Huron Consulting Group Inc. (HURN - Free Report) and Quanterix Corporation (QTRX - Free Report) have advanced 29.6% (versus the S&P 500’s 4.5% decline) and 14.5% (versus the S&P 500’s 4.6% fall) since their Zacks Recommendation was upgraded to Outperform on July 28 and July 25, 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 Novo Nordisk, UnitedHealth Group Shoot Up
Shares of Novo Nordisk A/S (NVO - Free Report) , which belongs to the Zacks Focus List, have gained 17.4% over the past 12 weeks. The stock was added to the Focus List on March 7, 2023. Another Focus-List holding, UnitedHealth Group Incorporated (UNH - Free Report) , which was added to the portfolio on June 22,2015, has returned 17.2% over the past 12 weeks. The S&P 500 has declined 3.8% over this period.
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.
The 50-stock Zacks Focus List model portfolio returned +22.3% in 2023 (through July 31st) vs. +20.6% for the S&P 500 index and +10.5% for the equal-weight S&P 500 index. In 2022, the portfolio produced -15.2% vs. the S&P 500 index’s -17.96%.
Since 2004, the Focus List portfolio has produced an annualized return of +11.27% through July 31st, 2023. This compares to a +9.65% annualized return for the S&P 500 index in the same time period.
On a rolling one-, three- and five-year bases, the Zacks Focus List returned +21.76%, +16.33%, and +12.54% vs. +12.99%, +13.71% and +12.19% for the S&P 500 index, respectively.
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 Check Point Software Technologies Make Significant Gains
Intuit Inc. (INTU - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 10.8% over the past 12 weeks. Check Point Software Technologies Ltd. (CHKP - Free Report) has followed Intuit with 7.4% returns.
ECAP, which consists of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks, has returned +6.67% in 2023 (through June 30) versus +16.90% for the S&P 500 Index. The portfolio returned -4.7% in 2022 versus the S&P 500 Index’s -17.96%.
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 Amgen and Automatic Data Processing
Amgen Inc. (AMGN - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 17.5% over the past 12 weeks. Another ECDP stock, Automatic Data Processing, Inc. (ADP - Free Report) , has gained 8.5% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid 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.
ECDP has returned +0.18% in 2023 (through June 30) versus +16.90% for the S&P 500 Index. The portfolio returned -2.3% in 2022 versus -17.96% for the S&P 500 Index and -8.34% for the ProShares S&P 500 Dividend Aristocrats ETF (NOBL - Free Report) .
Zacks Top 10 Stocks — Fabrinet Delivers Solid Returns
Fabrinet (FN - Free Report) , from the Zacks Top 10 Stocks for 2023, has gained 37.1% year to date, which compares to a 13.6% rise for the S&P 500 Index.
The portfolio returned +16.16% through the end of July 2023 vs. +20.64% for the S&P 500 index and +10.73% for the equal-weighted version of the index. The portfolio returned -15.8% in 2022 vs. -18.1% for the S&P 500 index. Since 2012, the Top 10 portfolio has generated an annualized return of +22.78% vs. +13.65% for the S&P 500 index.
Since the start of 2012 through July 31st, 2023, the Zacks Top 10 Stocks has produced a cumulative return of +977.47% vs. +340.35% cumulative return for the S&P 500 index.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Beat the Market the Zacks Way: UnitedHealth, Novo Nordisk, Check Point Software in Focus
Last week, the S&P 500 and the Nasdaq Composite gained 0.5% and 0.9%, respectively. However, the Dow Jones Industrial Average declined 0.1% in the same period. Uncertainty over the Federal Reserve’s interest rate outlook and rising tension between Israel and Palestine have forced investors to seek safer asset classes over equity. A rise in long-dated treasury yield and mixed movement in the major indexes suggest market indecisiveness.
Following stronger-than-expected job data, the U.S. 10-year Treasury yield rose to 4.9% on October 6, the highest in 16 years. Nonfarm payrolls increased by 336,000, the unemployment rate rose 3.8%, and average hourly earnings grew by 0.2% compared to the street expectation of 170,000, 3.7% and 0.3%, respectively. Investors fear that a strong labor market could prompt the Federal Reserve to keep the interest rate high for a prolonged period or raise it as inflation remains above its target. High interest rates, labor conflict and a dysfunctional federal government added to the worries.
On the international front, geopolitical risks increased due to the recent conflict between Israel and the Palestinian militant group Hamas. The ongoing war between Russia and Ukraine has also impacted global supply chain and corporate profitability, thus impacting investor sentiment.
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:
Sovos Brands and Lincoln Educational Services Surge Following Zacks Rank Upgrade
Shares of Sovos Brands, Inc. have gained 21.8% (versus the S&P 500’s 5.1% decline) since it was upgraded to a Zacks Rank #2 (Buy) on July 27.
Another stock, Lincoln Educational Services Corporation (LINC - Free Report) , which was also upgraded to a Zacks Rank #2 (Buy) on July 28, has returned 21.4% (versus the S&P 500’s 4.5% fall) 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 >>>
A hypothetical portfolio of Zacks Rank #1 (Strong Buy) stocks returned +12.02% this year (through September 4th) vs. +18.2% for the S&P 500 index and +7.6% for the equal-weight S&P 500 index. The portfolio of Zacks Rank #1 stocks is an equal-weight portfolio, while the S&P 500 index is a market-cap-weighted index that has been notably distorted by the strong recent performance of mega-cap stocks.
We are not trying to cherry-pick here. But since this Zacks Model portfolio, consisting of Zacks Rank #1 stocks, is an equal-weight portfolio, the equal-weight S&P 500 index is the appropriate benchmark for comparison. Looked at this way, this portfolio has outperformed the index this year.
The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by more than 13 percentage points since 1988 (Through September 4th, 2023, the Zacks # 1 Rank stocks has generated an annualized return of +24.17% since 1988 vs. +10.82% for the S&P 500 index).
Check Sovos Brands’ historical EPS and Sales here>>>
Check Lincoln Educational Services’ historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrades Consolidated Huron Consulting Group and Quanterix Corporation
Shares of Huron Consulting Group Inc. (HURN - Free Report) and Quanterix Corporation (QTRX - Free Report) have advanced 29.6% (versus the S&P 500’s 4.5% decline) and 14.5% (versus the S&P 500’s 4.6% fall) since their Zacks Recommendation was upgraded to Outperform on July 28 and July 25, 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 Novo Nordisk, UnitedHealth Group Shoot Up
Shares of Novo Nordisk A/S (NVO - Free Report) , which belongs to the Zacks Focus List, have gained 17.4% over the past 12 weeks. The stock was added to the Focus List on March 7, 2023. Another Focus-List holding, UnitedHealth Group Incorporated (UNH - Free Report) , which was added to the portfolio on June 22,2015, has returned 17.2% over the past 12 weeks. The S&P 500 has declined 3.8% over this period.
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.
The 50-stock Zacks Focus List model portfolio returned +22.3% in 2023 (through July 31st) vs. +20.6% for the S&P 500 index and +10.5% for the equal-weight S&P 500 index. In 2022, the portfolio produced -15.2% vs. the S&P 500 index’s -17.96%.
Since 2004, the Focus List portfolio has produced an annualized return of +11.27% through July 31st, 2023. This compares to a +9.65% annualized return for the S&P 500 index in the same time period.
On a rolling one-, three- and five-year bases, the Zacks Focus List returned +21.76%, +16.33%, and +12.54% vs. +12.99%, +13.71% and +12.19% for the S&P 500 index, respectively.
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 Check Point Software Technologies Make Significant Gains
Intuit Inc. (INTU - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 10.8% over the past 12 weeks. Check Point Software Technologies Ltd. (CHKP - Free Report) has followed Intuit with 7.4% returns.
ECAP, which consists of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks, has returned +6.67% in 2023 (through June 30) versus +16.90% for the S&P 500 Index. The portfolio returned -4.7% in 2022 versus the S&P 500 Index’s -17.96%.
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 Amgen and Automatic Data Processing
Amgen Inc. (AMGN - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 17.5% over the past 12 weeks. Another ECDP stock, Automatic Data Processing, Inc. (ADP - Free Report) , has gained 8.5% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
Check Amgen’s dividend history here>>>
Check Automatic Data Procesing’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.
ECDP has returned +0.18% in 2023 (through June 30) versus +16.90% for the S&P 500 Index. The portfolio returned -2.3% in 2022 versus -17.96% for the S&P 500 Index and -8.34% for the ProShares S&P 500 Dividend Aristocrats ETF (NOBL - Free Report) .
Click here to access this portfolio on Zacks Advisor Tools.
Zacks Top 10 Stocks — Fabrinet Delivers Solid Returns
Fabrinet (FN - Free Report) , from the Zacks Top 10 Stocks for 2023, has gained 37.1% year to date, which compares to a 13.6% rise for the S&P 500 Index.
The portfolio returned +16.16% through the end of July 2023 vs. +20.64% for the S&P 500 index and +10.73% for the equal-weighted version of the index. The portfolio returned -15.8% in 2022 vs. -18.1% for the S&P 500 index. Since 2012, the Top 10 portfolio has generated an annualized return of +22.78% vs. +13.65% for the S&P 500 index.
Since the start of 2012 through July 31st, 2023, the Zacks Top 10 Stocks has produced a cumulative return of +977.47% vs. +340.35% cumulative return for the S&P 500 index.