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Beat the Market Like Zacks: UnitedHealth, Badger Meter, 3M in Focus
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Last Friday, all of the three most widely followed indexes closed out a winning week. The tech-focused Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average advanced 6%, 4% and 2.6%, respectively. These are approximately two-week highs for all three benchmark indexes.
With both consumer and producer-side inflation coming in line with expectations, investor mood was upbeat about the Fed bringing down rates more than expected earlier. The labor market was modestly up. Backed up by a positive consumer sentiment report released late in the week, currently there is a raging debate on the extent of the rate cut that would be announced by the Fed.
Per CME’s FedWatch tool, while a 25 bps rate cut still edges ahead with a 51% probability, a 50 bps cut has soared to 49%. Trade throughout the week will be dominated by the Fed’s signals and how the market interprets them.
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:
IAMGOLD and Sierra Surge Following Zacks Rank Upgrade
Shares of IAMGOLD Corporation (IAG - Free Report) have surged 31.2% (versus the S&P 500’s 0.9% increase) since it was upgraded to a Zacks Rank #1 (Strong Buy) on July 18.
Another stock, Sierra Bancorp (BSRR - Free Report) , was also upgraded to a Zacks Rank #1 on July 18 and has returned 7.9% 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 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 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 Financial Institutions and First United Higher
Shares of Financial Institutions, Inc. (FISI - Free Report) and First United Corporation (FUNC - Free Report) have advanced 8.9% (versus the S&P 500’s 3.8% rise) and 4.7% (versus the S&P 500’s 4.4% rise), since their Zacks Recommendation was upgraded to Outperform on July 25 and July 26, 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 Palantir, Virtu Shoot Up
Shares of Palantir Technologies Inc. (PLTR - Free Report) , which belongs to the Zacks Focus List, have gained 49.3% over the past 12 weeks. The stock was added to the Focus List on March 26, 2024. Another Focus-List holding, Virtu Financial, Inc. (VIRT - Free Report) , which was added to the portfolio on July 31, 2023, has returned 39.2% over the past 12 weeks. The S&P 500 has advanced 3.1% 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 Fair Isaac and UnitedHealth Make Significant Gains
Fair Isaac Corporation (FICO - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 30.1% over the past 12 weeks. UnitedHealth Group Incorporated (UNH - Free Report) has followed Fair Isaac with 23.2% 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 and Starbucks Outshine Peers
3M Company (MMM - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 30.1% over the past 12 weeks. Another ECDP stock, Starbucks Corporation (SBUX - Free Report) , has climbed 23.4% 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 +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).
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 — Badger Meter Delivers Solid Returns
Badger Meter, Inc. (BMI - Free Report) , from the Zacks Top 10 Stocks for 2024, has jumped 35.4% year to date compared with an 18.3% increase for the S&P 500 Index.
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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Beat the Market Like Zacks: UnitedHealth, Badger Meter, 3M in Focus
Last Friday, all of the three most widely followed indexes closed out a winning week. The tech-focused Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average advanced 6%, 4% and 2.6%, respectively. These are approximately two-week highs for all three benchmark indexes.
With both consumer and producer-side inflation coming in line with expectations, investor mood was upbeat about the Fed bringing down rates more than expected earlier. The labor market was modestly up. Backed up by a positive consumer sentiment report released late in the week, currently there is a raging debate on the extent of the rate cut that would be announced by the Fed.
Per CME’s FedWatch tool, while a 25 bps rate cut still edges ahead with a 51% probability, a 50 bps cut has soared to 49%. Trade throughout the week will be dominated by the Fed’s signals and how the market interprets them.
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:
IAMGOLD and Sierra Surge Following Zacks Rank Upgrade
Shares of IAMGOLD Corporation (IAG - Free Report) have surged 31.2% (versus the S&P 500’s 0.9% increase) since it was upgraded to a Zacks Rank #1 (Strong Buy) on July 18.
Another stock, Sierra Bancorp (BSRR - Free Report) , was also upgraded to a Zacks Rank #1 on July 18 and has returned 7.9% 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 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 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 IAMGOLD’ historical EPS and Sales here>>>
Check Sierra’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrades Financial Institutions and First United Higher
Shares of Financial Institutions, Inc. (FISI - Free Report) and First United Corporation (FUNC - Free Report) have advanced 8.9% (versus the S&P 500’s 3.8% rise) and 4.7% (versus the S&P 500’s 4.4% rise), since their Zacks Recommendation was upgraded to Outperform on July 25 and July 26, 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 Palantir, Virtu Shoot Up
Shares of Palantir Technologies Inc. (PLTR - Free Report) , which belongs to the Zacks Focus List, have gained 49.3% over the past 12 weeks. The stock was added to the Focus List on March 26, 2024. Another Focus-List holding, Virtu Financial, Inc. (VIRT - Free Report) , which was added to the portfolio on July 31, 2023, has returned 39.2% over the past 12 weeks. The S&P 500 has advanced 3.1% 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 Fair Isaac and UnitedHealth Make Significant Gains
Fair Isaac Corporation (FICO - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 30.1% over the past 12 weeks. UnitedHealth Group Incorporated (UNH - Free Report) has followed Fair Isaac with 23.2% 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 and Starbucks Outshine Peers
3M Company (MMM - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 30.1% over the past 12 weeks. Another ECDP stock, Starbucks Corporation (SBUX - Free Report) , has climbed 23.4% 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’s dividend history here>>>
Check Starbucks’ 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 +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).
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 — Badger Meter Delivers Solid Returns
Badger Meter, Inc. (BMI - Free Report) , from the Zacks Top 10 Stocks for 2024, has jumped 35.4% year to date compared with an 18.3% increase for the S&P 500 Index.
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.