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Take the Zacks Approach to Beat the Markets: Goldman Sachs, Rush Street Interactive, Atmus Filtration Technologies in Focus
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Last week, major U.S. indexes, the S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average, gained marginally by 1.6%, 1.8% and 1.4%, respectively. Investors are concerned about the lack of timeline from the central bank regarding interest rate cut initiation amid sticky inflation and a fairly tight labor market.
On May 15, the Bureau of Labor Statistics reported that the Consumer Price Index (CPI) for the month of April increased 0.3%, coming in below the consensus estimate of 0.4%. The year-over-year increase of 3.4% is still way above the Federal Reserve’s ambitious target of 2%. The Producer Price Index (PPI) increased 0.5%, surpassing the consensus estimate of 0.3% over the same period, indicating persistent inflationary pressure.
Also, according to the Department of Labor report, initial jobless claims fell by 10,000 to 222,000 for the week ending May 11. Continuing claims for the week ending May 4, came in at 1,794,000, increasing 13,000 from the previous week’s revised level. This suggests that jobs growth is cooling but labor market conditions are still relatively tight.
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:
Draganfly and Rush Street Interactive Following Zacks Rank Upgrade
Shares of Draganfly Inc. (DPRO - Free Report) have gained 58.7% (versus the S&P 500’s 4.7% rise) since it was upgraded to a Zacks Rank #2 (Buy) on March 11.
Another stock, Rush Street Interactive, Inc. (RSI - Free Report) , which was upgraded to a Zacks Rank #2 has returned 49.1% over the same period.
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 +6.1% in the year-to-date period through April 1st, 2024, vs. +11.3% for the S&P 500 index and +7.7% for the equal-weight version of the S&P 500 index.
This hypothetical portfolio 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 since October 2022.
The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by more than 16 percentage points since 1988 (Through April 1st, 2024, the Zacks # 1 Rank stocks generated an annualized return of +27.6% since 1988 vs. +11.1% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Zacks Recommendation Upgrades Atmus Filtration Technologies and Sprouts Farmers Market
Shares of Atmus Filtration Technologies Inc. (ATMU - Free Report) and Sprouts Farmers Market, Inc. (SFM - Free Report) have advanced 24.7% and 24.1% (versus the S&P 500’s 4.09% increase), respectively, since their Zacks Recommendation was upgraded to Outperform on March 8.
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 Virtu Financial, Goldman Sachs Shoot Up
Shares of Virtu Financial, Inc. (VIRT - Free Report) , which belongs to the Zacks Focus List, have gained 37.3% over the past 12 weeks. The stock was added to the Focus List on July 31, 2023. Another Focus-List holding, The Goldman Sachs Group, Inc. (GS - Free Report) , which was added to the portfolio on July 11, 2018, has returned 19.6% over the past 12 weeks. The S&P 500 has advanced 2.01% over this period.
The Focus List portfolio returned +10.23% in 2024 Q1 vs. +10.56% for the S&P 500 index and +7.9% for the equal-weight S&P 500 index.
The 50-stock Zacks Focus List model portfolio returned +31.44% in 2023 vs. +26.28% for the S&P 500 index and +13.61% 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 +11.91% (through March 31st, 2024). This compares to a +10.25% annualized return for the S&P 500 index in the same time period.
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 Tractor Supply & Walmart Make Significant Gains
Tractor Supply (TSCO - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 17.5% over the past 12 weeks. Walmart Inc (WMT - Free Report) has followed Tractor Supply with 10.5% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned +9.08% in the year-to-date period (through March 31st, 2024) vs. +10.42%.
In 2023, the portfolio returned +12.17% 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 3M Company and Quest Diagnostics Outperform Peers
3M Company (MMM - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 13.7% over the past 12 weeks. Another ECDP stock, Quest DiagnosticsIncorporated (DGX - Free Report) , has climbed 13.6% 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.
The Zacks Earnings Certain Dividend Portfolio (ECDP) returned +4.47% in the year-to-date period (through March 31st, 2024) vs. +10.42% for the S&P 500 index (IVV) and +6.9% for the Dividend Aristocrats ETF (NOBL - Free Report) .
The portfolio returned -0.9% in 2023 vs. +26.28% for the S&P 500 index and +8.11% for 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 37.1% year to date, which compares to the S&P 500 index’s +11.4% increase.
The Top 10 portfolio returned +19.56% in 2024 Q1 vs. +10.56% for the S&P 500 index and +7.9% for the equal-weight version of the 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 +1,060.9% through the end of 2023 vs. +360.1% for the S&P 500 index.
Since 2012, the Zacks Top 10 portfolio has produced an annualized return of +25.02% through the end of 2024 Q1 vs. +14.1% for the S&P 500 index and +12.7% for the equal-weight version of the index. The portfolio has produced a cumulative return of +1,442.3% vs. +403.03% for the S&P 500 index and +331.29% for the equal-weight index.
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Take the Zacks Approach to Beat the Markets: Goldman Sachs, Rush Street Interactive, Atmus Filtration Technologies in Focus
Last week, major U.S. indexes, the S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average, gained marginally by 1.6%, 1.8% and 1.4%, respectively. Investors are concerned about the lack of timeline from the central bank regarding interest rate cut initiation amid sticky inflation and a fairly tight labor market.
On May 15, the Bureau of Labor Statistics reported that the Consumer Price Index (CPI) for the month of April increased 0.3%, coming in below the consensus estimate of 0.4%. The year-over-year increase of 3.4% is still way above the Federal Reserve’s ambitious target of 2%. The Producer Price Index (PPI) increased 0.5%, surpassing the consensus estimate of 0.3% over the same period, indicating persistent inflationary pressure.
Also, according to the Department of Labor report, initial jobless claims fell by 10,000 to 222,000 for the week ending May 11. Continuing claims for the week ending May 4, came in at 1,794,000, increasing 13,000 from the previous week’s revised level. This suggests that jobs growth is cooling but labor market conditions are still relatively tight.
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:
Draganfly and Rush Street Interactive Following Zacks Rank Upgrade
Shares of Draganfly Inc. (DPRO - Free Report) have gained 58.7% (versus the S&P 500’s 4.7% rise) since it was upgraded to a Zacks Rank #2 (Buy) on March 11.
Another stock, Rush Street Interactive, Inc. (RSI - Free Report) , which was upgraded to a Zacks Rank #2 has returned 49.1% over the same period.
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 +6.1% in the year-to-date period through April 1st, 2024, vs. +11.3% for the S&P 500 index and +7.7% for the equal-weight version of the S&P 500 index.
This hypothetical portfolio 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 since October 2022.
The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by more than 16 percentage points since 1988 (Through April 1st, 2024, the Zacks # 1 Rank stocks generated an annualized return of +27.6% since 1988 vs. +11.1% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check Draganfly’s historical EPS and Sales here>>>
Check Rush Street Interactive’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrades Atmus Filtration Technologies and Sprouts Farmers Market
Shares of Atmus Filtration Technologies Inc. (ATMU - Free Report) and Sprouts Farmers Market, Inc. (SFM - Free Report) have advanced 24.7% and 24.1% (versus the S&P 500’s 4.09% increase), respectively, since their Zacks Recommendation was upgraded to Outperform on March 8.
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 Virtu Financial, Goldman Sachs Shoot Up
Shares of Virtu Financial, Inc. (VIRT - Free Report) , which belongs to the Zacks Focus List, have gained 37.3% over the past 12 weeks. The stock was added to the Focus List on July 31, 2023. Another Focus-List holding, The Goldman Sachs Group, Inc. (GS - Free Report) , which was added to the portfolio on July 11, 2018, has returned 19.6% over the past 12 weeks. The S&P 500 has advanced 2.01% over this period.
The Focus List portfolio returned +10.23% in 2024 Q1 vs. +10.56% for the S&P 500 index and +7.9% for the equal-weight S&P 500 index.
The 50-stock Zacks Focus List model portfolio returned +31.44% in 2023 vs. +26.28% for the S&P 500 index and +13.61% 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 +11.91% (through March 31st, 2024). This compares to a +10.25% annualized return for the S&P 500 index in the same time period.
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 Tractor Supply & Walmart Make Significant Gains
Tractor Supply (TSCO - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 17.5% over the past 12 weeks. Walmart Inc (WMT - Free Report) has followed Tractor Supply with 10.5% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned +9.08% in the year-to-date period (through March 31st, 2024) vs. +10.42%.
In 2023, the portfolio returned +12.17% 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 3M Company and Quest Diagnostics Outperform Peers
3M Company (MMM - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 13.7% over the past 12 weeks. Another ECDP stock, Quest DiagnosticsIncorporated (DGX - Free Report) , has climbed 13.6% 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 3M Company’s dividend history here>>>
Check Quest Diagnostics’ dividend history here>>>
The Zacks Earnings Certain Dividend Portfolio (ECDP) returned +4.47% in the year-to-date period (through March 31st, 2024) vs. +10.42% for the S&P 500 index (IVV) and +6.9% for the Dividend Aristocrats ETF (NOBL - Free Report) .
The portfolio returned -0.9% in 2023 vs. +26.28% for the S&P 500 index and +8.11% for 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 37.1% year to date, which compares to the S&P 500 index’s +11.4% increase.
The Top 10 portfolio returned +19.56% in 2024 Q1 vs. +10.56% for the S&P 500 index and +7.9% for the equal-weight version of the 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 +1,060.9% through the end of 2023 vs. +360.1% for the S&P 500 index.
Since 2012, the Zacks Top 10 portfolio has produced an annualized return of +25.02% through the end of 2024 Q1 vs. +14.1% for the S&P 500 index and +12.7% for the equal-weight version of the index. The portfolio has produced a cumulative return of +1,442.3% vs. +403.03% for the S&P 500 index and +331.29% for the equal-weight index.