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Beat the Market Like Zacks: Costco, GigaCloud, Novo Nordisk in Focus
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Last Friday, the three widely followed indexes closed out a fifth straight winning week. The Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average gained 2.3%, 1.4% and less than 0.1%, respectively.
The S&P 500 hit its all-time closing high, breaching the 5,000 mark on Friday. Revised consumer-side inflation data for December raised expectations of an earlier-than-expected interest rate cut this year while investors kept a keen watch on rising treasury yields. Optimism around artificial intelligence helped the tech-heavy Nasdaq breach the 16,000 mark for a short while before settling back down.
Oil prices advanced for the week on concerns over the conflict escalating in the Middle East after Israel rejected a ceasefire offer from Hamas. Market participants will keep a keen watch on inflation data for January, which is slated to come out this week.
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:
GigaCloud and Abercrombie & Fitch Surge Following Zacks Rank Upgrade
Shares of GigaCloud Technology Inc. (GCT - Free Report) have gained 118.7% (versus the S&P 500’s 9.4% increase) since it was upgraded to a Zacks Rank #1 (Strong Buy) on December 8.
Another stock, Abercrombie & FitchCo. (ANF - Free Report) , which was upgraded to a Zacks Rank #1 on November 29, has returned 41.7% (versus the S&P 500’s 10.1% increase) 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.
A hypothetical portfolio of Zacks Rank #1 (Strong Buy) stocks returned +20.63% in 2023 vs. +24.83% for the S&P 500 index and +15% 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 concentrated performance of mega-cap stocks in 2023.
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 handily outperformed the index.
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 January 1st, 2024, the Zacks # 1 Rank stocks generated an annualized return of +24.18% since 1988 vs. +10.88% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Zacks Recommendation Upgrades StoneCo and Lakeland Industries Higher
Shares of StoneCo Ltd. (STNE - Free Report) and Lakeland Industries, Inc. (LAKE - Free Report) have advanced 15.5% (versus the S&P 500’s 8.7% rise) and 13.8% (versus the S&P 500’s 6.9% rise) since their Zacks Recommendation was upgraded to Outperform on December 12 and December 14, 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 Enphase, American Express Shoot Up
Shares of Enphase Energy, Inc. (ENPH - Free Report) , which belongs to the Zacks Focus List, have gained 31.9% over the past 12 weeks. The stock was added to the Focus List on July 31, 2023. Another Focus-List holding, American Express Company (AXP - Free Report) , which was added to the portfolio on December 23, 2021, has returned 30.7% over the past 12 weeks. The S&P 500 has advanced 11.2% over this period.
The 50-stock Zacks Focus List model portfolio returned +21.72% in 2023 (through November 30) vs. +20.79% for the S&P 500 index and +6.32% 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 +11.07% through November 30, 2023. This compares to a +9.49% annualized return for the S&P 500 index in the same time period.
On a rolling one-, three- and five-year annualized basis, the Zacks Focus List returned +13.49%, +9.21%, and +14.05% vs. +13.82%, +9.74% and +12.51% 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 Costco and Novo Nordisk Make Significant Gains
Costco Wholesale Corporation (COST - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 25.3% over the past 12 weeks. Novo Nordisk A/S (NVO - Free Report) has followed Costco with 19.5% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks, returned +12.17% in 2023 vs. +26.28% for the S&P 500 index. The portfolio returned -4.7% in 2022 vs. 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 Intercontinental Exchange and Home Depot Outshine Peers
Intercontinental Exchange, Inc. (ICE - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 21.6% over the past 12 weeks. Another ECDP stock, The Home Depot, Inc. (HD - Free Report) , has climbed 18.2% 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.
The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -0.9% in 2023 vs. +26.28% for the S&P 500 index) and +8.11% for the Dividend Aristocrats ETF (NOBL). The portfolio returned -2.3% in 2022 vs. -17.96% for the S&P 500 index and -8.34% for NOBL.
Zacks Top 10 Stocks — Eaton Corporation Delivers Solid Returns
Eaton Corporation plc (ETN - Free Report) , from the Zacks Top 10 Stocks for 2024, has jumped 15.4% year to date compared to a 5.5% increase for the S&P 500 Index.
The Top 10 portfolio returned +25.15% in 2023 vs. +26.28% for the S&P 500 index. Since 2012, the Top 10 portfolio has produced a cumulative return of +1060.9% through the end of 2023 vs. +360.1% for the S&P 500 index.
On a rolling one-, three- and five-year annualized basis, the Zacks Top 10 portfolio returned +25.15%, +14.13%, and +29.3% vs. +26.28%, +10.23% and +15.61% for the S&P 500 index, respectively.
Since 2012, the Zacks Top 10 portfolio has returned an annualized return of +22.67% through the end of 2023 vs. +13.56% for the S&P 500 index.
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Beat the Market Like Zacks: Costco, GigaCloud, Novo Nordisk in Focus
Last Friday, the three widely followed indexes closed out a fifth straight winning week. The Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average gained 2.3%, 1.4% and less than 0.1%, respectively.
The S&P 500 hit its all-time closing high, breaching the 5,000 mark on Friday. Revised consumer-side inflation data for December raised expectations of an earlier-than-expected interest rate cut this year while investors kept a keen watch on rising treasury yields. Optimism around artificial intelligence helped the tech-heavy Nasdaq breach the 16,000 mark for a short while before settling back down.
Oil prices advanced for the week on concerns over the conflict escalating in the Middle East after Israel rejected a ceasefire offer from Hamas. Market participants will keep a keen watch on inflation data for January, which is slated to come out this week.
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:
GigaCloud and Abercrombie & Fitch Surge Following Zacks Rank Upgrade
Shares of GigaCloud Technology Inc. (GCT - Free Report) have gained 118.7% (versus the S&P 500’s 9.4% increase) since it was upgraded to a Zacks Rank #1 (Strong Buy) on December 8.
Another stock, Abercrombie & FitchCo. (ANF - Free Report) , which was upgraded to a Zacks Rank #1 on November 29, has returned 41.7% (versus the S&P 500’s 10.1% increase) 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.
A hypothetical portfolio of Zacks Rank #1 (Strong Buy) stocks returned +20.63% in 2023 vs. +24.83% for the S&P 500 index and +15% 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 concentrated performance of mega-cap stocks in 2023.
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 handily outperformed the index.
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 January 1st, 2024, the Zacks # 1 Rank stocks generated an annualized return of +24.18% since 1988 vs. +10.88% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check GigaCloud’s historical EPS and Sales here>>>
Check Abercrombie & Fitch’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrades StoneCo and Lakeland Industries Higher
Shares of StoneCo Ltd. (STNE - Free Report) and Lakeland Industries, Inc. (LAKE - Free Report) have advanced 15.5% (versus the S&P 500’s 8.7% rise) and 13.8% (versus the S&P 500’s 6.9% rise) since their Zacks Recommendation was upgraded to Outperform on December 12 and December 14, 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 Enphase, American Express Shoot Up
Shares of Enphase Energy, Inc. (ENPH - Free Report) , which belongs to the Zacks Focus List, have gained 31.9% over the past 12 weeks. The stock was added to the Focus List on July 31, 2023. Another Focus-List holding, American Express Company (AXP - Free Report) , which was added to the portfolio on December 23, 2021, has returned 30.7% over the past 12 weeks. The S&P 500 has advanced 11.2% over this period.
The 50-stock Zacks Focus List model portfolio returned +21.72% in 2023 (through November 30) vs. +20.79% for the S&P 500 index and +6.32% 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 +11.07% through November 30, 2023. This compares to a +9.49% annualized return for the S&P 500 index in the same time period.
On a rolling one-, three- and five-year annualized basis, the Zacks Focus List returned +13.49%, +9.21%, and +14.05% vs. +13.82%, +9.74% and +12.51% 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 Costco and Novo Nordisk Make Significant Gains
Costco Wholesale Corporation (COST - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 25.3% over the past 12 weeks. Novo Nordisk A/S (NVO - Free Report) has followed Costco with 19.5% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks, returned +12.17% in 2023 vs. +26.28% for the S&P 500 index. The portfolio returned -4.7% in 2022 vs. 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 Intercontinental Exchange and Home Depot Outshine Peers
Intercontinental Exchange, Inc. (ICE - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 21.6% over the past 12 weeks. Another ECDP stock, The Home Depot, Inc. (HD - Free Report) , has climbed 18.2% 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 Intercontinental Exchange’s dividend history here>>>
Check Home Depot’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 Zacks Earnings Certain Dividend Portfolio (ECDP) returned -0.9% in 2023 vs. +26.28% for the S&P 500 index) and +8.11% for the Dividend Aristocrats ETF (NOBL). The portfolio returned -2.3% in 2022 vs. -17.96% for the S&P 500 index and -8.34% for NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
Zacks Top 10 Stocks — Eaton Corporation Delivers Solid Returns
Eaton Corporation plc (ETN - Free Report) , from the Zacks Top 10 Stocks for 2024, has jumped 15.4% year to date compared to a 5.5% increase for the S&P 500 Index.
The Top 10 portfolio returned +25.15% in 2023 vs. +26.28% for the S&P 500 index. Since 2012, the Top 10 portfolio has produced a cumulative return of +1060.9% through the end of 2023 vs. +360.1% for the S&P 500 index.
On a rolling one-, three- and five-year annualized basis, the Zacks Top 10 portfolio returned +25.15%, +14.13%, and +29.3% vs. +26.28%, +10.23% and +15.61% for the S&P 500 index, respectively.
Since 2012, the Zacks Top 10 portfolio has returned an annualized return of +22.67% through the end of 2023 vs. +13.56% for the S&P 500 index.