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Take the Zacks Approach to Beat the Markets: NVIDIA, Twist Bioscience, Ollie's Bargain Outlet in Focus
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Last week, the S&P 500 and the Dow Jones Industrial Average gained 0.76% and 1.65%, respectively. However, the Nasdaq Composite marginally declined by 0.02% in the same period.
The most-awaited inflation report, the Consumer Price Index (CPI) for June, saw a dip in monthly inflation for the first time in more than four years. The CPI fell 0.1% monthly amid cheaper gasoline and moderating rents. Over the last 12 months, the all items index increased by 3%, inching close to the Federal Reserves’ desired target of 2%.
The labor market also saw a rise in unemployment and a slowdown in job creation, the nonfarm payrolls rose by 206,000 in June compared to the revised target of 218,000 in May, while the unemployment rate changed little to 4.1% compared to 4% over the same period.
Federal Reserve Chair Jerome Powell after his two-day testimony in front of Congress, said that the central bank will not cut interest rates until they find greater confidence that inflation is headed toward its desired target. Favorable macroeconomic data, along with the presidential election in fall, triggered expectations among investors of an interest rate cut in September. All eyes will be on the Fed’s upcoming meets on July 30-31.
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:
Ouster and Twist Bioscience Following Zacks Rank Upgrade
Shares of Ouster, Inc. (OUST - Free Report) have gained 39.9% (versus the S&P 500’s 8.3% increase) since it was upgraded to a Zacks Rank #2 (Buy) on May 9.
Another stock, Twist Bioscience Corporation (TWST - Free Report) , which was upgraded to a Zacks Rank #2 on May 6, has returned 29.7% (versus the S&P 500’s 9.6% 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 has returned +6.1% in the year-to-date period through April 1, 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 1, 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 Veracyte and Datadog
Shares of Veracyte, Inc. (VCYT - Free Report) and Datadog, Inc. (DDOG - Free Report) have advanced 13.1% (versus the S&P 500’s 8.3% increase) and 10.3% (versus the S&P 500’s 7.7% rise), respectively, since their Zacks Recommendation was upgraded to Outperform on May 9 and May 10, 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 NVIDIA, Lam Research Shoot Up
Shares of NVIDIA Corporation (NVDA - Free Report) , which belongs to the Zacks Focus List, have gained 69.6% over the past 12 weeks. The stock was added to the Focus List on May 20, 2019. Another Focus-List holding, Lam Research Corporation (LRCX - Free Report) , which was added to the portfolio on December 5, 2016, has returned 22.9% over the past 12 weeks. The S&P 500 has advanced 11.3% 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 31, 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 Oracle & Rollins Make Significant Gains
Oracle Corporation (ORCL - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 26.0% over the past 12 weeks. Rollins, Inc. (ROL - Free Report) has followed Oracle with 16.2% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks, has returned +9.08% in the year-to-date period (through March 31, 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 American Tower and Public Storage Outperform Peers
American Tower Corporation (AMT - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 23.0% over the past 12 weeks. Another ECDP stock, Public Storage (PSA - Free Report) , has also climbed 16.2% 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) has returned +4.47% in the year-to-date period (through March 31, 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 Ollie's Bargain Outlet Delivers Solid Returns
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) , from the Zacks Top 10 Stocks for 2024, has jumped 34.1% year to date, which compares to the S&P 500 index’s +17.9% 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: NVIDIA, Twist Bioscience, Ollie's Bargain Outlet in Focus
Last week, the S&P 500 and the Dow Jones Industrial Average gained 0.76% and 1.65%, respectively. However, the Nasdaq Composite marginally declined by 0.02% in the same period.
The most-awaited inflation report, the Consumer Price Index (CPI) for June, saw a dip in monthly inflation for the first time in more than four years. The CPI fell 0.1% monthly amid cheaper gasoline and moderating rents. Over the last 12 months, the all items index increased by 3%, inching close to the Federal Reserves’ desired target of 2%.
The labor market also saw a rise in unemployment and a slowdown in job creation, the nonfarm payrolls rose by 206,000 in June compared to the revised target of 218,000 in May, while the unemployment rate changed little to 4.1% compared to 4% over the same period.
Federal Reserve Chair Jerome Powell after his two-day testimony in front of Congress, said that the central bank will not cut interest rates until they find greater confidence that inflation is headed toward its desired target. Favorable macroeconomic data, along with the presidential election in fall, triggered expectations among investors of an interest rate cut in September. All eyes will be on the Fed’s upcoming meets on July 30-31.
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:
Ouster and Twist Bioscience Following Zacks Rank Upgrade
Shares of Ouster, Inc. (OUST - Free Report) have gained 39.9% (versus the S&P 500’s 8.3% increase) since it was upgraded to a Zacks Rank #2 (Buy) on May 9.
Another stock, Twist Bioscience Corporation (TWST - Free Report) , which was upgraded to a Zacks Rank #2 on May 6, has returned 29.7% (versus the S&P 500’s 9.6% 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 has returned +6.1% in the year-to-date period through April 1, 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 1, 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 Ouster’s historical EPS and Sales here>>>
Check Twist Bioscience’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrades Veracyte and Datadog
Shares of Veracyte, Inc. (VCYT - Free Report) and Datadog, Inc. (DDOG - Free Report) have advanced 13.1% (versus the S&P 500’s 8.3% increase) and 10.3% (versus the S&P 500’s 7.7% rise), respectively, since their Zacks Recommendation was upgraded to Outperform on May 9 and May 10, 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 NVIDIA, Lam Research Shoot Up
Shares of NVIDIA Corporation (NVDA - Free Report) , which belongs to the Zacks Focus List, have gained 69.6% over the past 12 weeks. The stock was added to the Focus List on May 20, 2019. Another Focus-List holding, Lam Research Corporation (LRCX - Free Report) , which was added to the portfolio on December 5, 2016, has returned 22.9% over the past 12 weeks. The S&P 500 has advanced 11.3% 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 31, 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 Oracle & Rollins Make Significant Gains
Oracle Corporation (ORCL - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 26.0% over the past 12 weeks. Rollins, Inc. (ROL - Free Report) has followed Oracle with 16.2% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks, has returned +9.08% in the year-to-date period (through March 31, 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 American Tower and Public Storage Outperform Peers
American Tower Corporation (AMT - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 23.0% over the past 12 weeks. Another ECDP stock, Public Storage (PSA - Free Report) , has also climbed 16.2% 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 American Tower’s dividend history here>>>
Check Public Storage’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) has returned +4.47% in the year-to-date period (through March 31, 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 Ollie's Bargain Outlet Delivers Solid Returns
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) , from the Zacks Top 10 Stocks for 2024, has jumped 34.1% year to date, which compares to the S&P 500 index’s +17.9% 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.