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Take the Zacks Approach to Beat the Markets: Stride, InnovAge, PepsiCo in Focus

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Key Takeaways

  • LRN has jumped 38.7% in 2026, outperforming a declining S&P 500 over the same period.
  • INNV surged 34.5% after a Zacks Recommendation upgrade to Outperform in early February.
  • PEP gained 13% in 12 weeks, supported by its inclusion in the ECAP portfolio.

Last Friday, all three Wall Street benchmark stock indexes registered a week of gains. The tech-focused Nasdaq, the S&P 500 and the Dow Jones Industrial Average gained 4.4%, 3.4% and 3%, respectively.

The rebound was supported by easing concerns around inflation and interest rates, as investors took comfort from steady messaging by Jerome Powell and expectations that the Fed would avoid aggressive tightening. Cooling bond yields and stable economic data, including resilient jobs and consumer spending trends, improved risk appetite and encouraged investors to move back into equities after recent weakness.

At the same time, the ongoing Iran war played a complex role. While the conflict drove sharp spikes in oil prices due to disruptions in the Strait of Hormuz, markets partly rebounded as investors assessed that the economic impact, though serious, may remain contained in the near term. Tech stocks led gains, with dip-buying and optimism around corporate outlooks lifting sentiment, even as geopolitical risks and energy-driven inflation concerns lingered in the background.

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:

Century Aluminum and Teradyne Surge Following Zacks Rank Upgrade

Shares of Century Aluminum Company (CENX - Free Report) have gained 23.9% (versus the S&P 500’s 4.9% decrease) since it was upgraded to a Zacks Rank #1 (Strong Buy) on February 4.

Another stock, Teradyne, Inc. (TER - Free Report) , which was also upgraded to a Zacks Rank #1 on February 4, has returned 9.4% since then.

An equal-weight portfolio of Zacks Rank # 1 (Strong Buy) stocks outperformed the equal-weight S&P 500 index by 7.7 percentage points in the year-to-date 2026 period (through March 3rd, 2026); The Zacks Rank #1 stocks returned +6.57% through March 3rd, while the equal-weight S&P 500 index lost -1.14% of its value.

In 2025, this hypothetical equal-weight portfolio returned +17.81% vs. +10.85% for the index, while performance comparison was +22.4% vs. +13.7% in 2024. Over the preceding 10-year period (2016 through 2025), this portfolio of qual-weight Zacks Rank #1 stocks outperformed the equal-weight S&P 500 index by more than 7 percentage points (+18.55% vs. +11.65%).

You can see the complete list of today’s Zacks Rank #1 stocks here >>>

Check Century Aluminum’s historical EPS and Sales here>>>

Check Teradyne’s historical EPS and Sales here>>>

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Zacks Recommendation Upgrades InnovAge and Teekay Tankers

Shares of InnovAge Holding Corp. (INNV - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) have surged 34.5% and 18.2% (versus the S&P 500’s 4.9% fall), respectively, since their Zacks Recommendation was upgraded to Outperform on February 4.

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 Celanese, Quanta Services Shoot Up

Shares of Celanese Corporation (CE - Free Report) , which belongs to the Zacks Focus List, have gained 44% over the past 12 weeks. The stock was added to the Focus List on December 5, 2016. Another Focus-List holding, Quanta Services, Inc. (PWR - Free Report) , which was added to the portfolio on December 23, 2021, has returned 27.9% over the past 12 weeks. The S&P 500 has declined 5.2% over this period. 

The 50-stock Focus List portfolio returned +6.65% in 2026 (through February 28th) vs. +0.68% for the S&P 500 index and +7.06% for the equal-weight version of the index.

The portfolio returned +22.1% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.

The Zacks Focus List portfolio returned +18.41% in 2024 vs. +25.04% for the S&P 500 index and +13% for the equal-weight S&P 500 index. The portfolio had returned +29.54% 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 returned -15.2% vs. the S&P 500 index’s -17.96%.

Through February 28th, 2026, the portfolio’s rolling returns on a one-year, three-year, five-year, ten-year, and since 2004 have been +29.35% (vs. +17% for the S&P 500 index), +23.13% (vs. +21.81%), +14.15% (vs. +14.19%), +16.79% (vs. +15.50%) and +12.38% vs. (+10.66%), 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 PepsiCo & Walmart Gain Significantly

PepsiCo, Inc. (PEP - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 13% over the past 12 weeks. Walmart Inc. (WMT - Free Report) followed PepsiCo with 10% returns.

The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -2.3% in the fourth quarter of 2025 vs. the S&P 500 index’s +2.7% gain (SPY ETF). For 2025 as a whole, the portfolio returned -1.67% vs. +17.9% gain for the S&P 500 index.

For the year 2024, the portfolio returned +16.26% vs. +24.89% for the S&P 500 index (SPY ETF). 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, 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 Hershey’s and Coca-Cola Outperform Peers

The Hershey Company (HSY - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 15% over the past 12 weeks. Another ECDP stock, The Coca-Cola Company (KO - Free Report) , has climbed 13.1% 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 Hershey’s dividend history here>>>

Check Coca-Cola’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 -2.1% in 2025 Q4 vs. the S&P 500 index’s +2.7% gain and the Dividend Aristocrats ETF’s (NOBL) +1.6% return. For 2025, the portfolio returned -0.6% vs. +6.8% gain for the Dividend Aristocrat ETF.

For the full year 2024, the portfolio returned +6.95% vs. +24.89% for the S&P 500 index and +6.72% for NOBL.

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 Stock Stride Delivers Solid Returns

Stride, Inc. (LRN - Free Report) , from the Zacks Top 10 Stocks for 2025, has jumped 38.7% since January 5, 2026, against the S&P 500 Index’s 4% decrease.

The Top 10 portfolio retuned +10.5% in 2026 (through February 28th) vs. +0.5% for the S&P 500 index and +6.3% for the equal-weight version of the index.

The Top 10 portfolio returned +22.6% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.

The Top 10 portfolio returned +62.98% in 2024, vs. +25.04% for the S&P 500 index and +13% for the equal-weight version of the index. The portfolio had returned +25.15% in 2023 vs. +26.28% for the S&P 500 index.

Through the end of February 2026, the Top 10 portfolio has produced a cumulative return of +2,761.6% since 2012 vs. +564.8% for the S&P 500 index and +435% for the equal-weight version of the index. The portfolio has produced an average annual return of +26.4% in the period 2012 through February 28th, 2026 vs. +13% for the S&P 500 index and +11% for the equal-weight version of the index.

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