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Beat the Market the Zacks Way: SoFi Technologies, Lisata Therapeutics, AutoZone in Focus
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The three most widely followed indexes have ended positively in the holiday-shortened trading week. The Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average have gained by 0.69%, 0.60% and 0.37%, respectively.
After a solid rebound in 2024, Wall Street stocks pulled back further in first week of 2025 as investors weighed in solid labor market data. The number of Americans filing new applications for unemployment benefits dropped 9,000 to 211,000 for the week ending December 28, marking an eight-month low. Continuing claims declined 52,000 to 1,844,000 from the previous week’s revised level of 1,896,000. Resilience in the labor market is supporting the Federal Reserve's projections for fewer interest rate cuts this year.
On the global front, a fresh outbreak of Human Metapneumovirus (HMPV) in China has raised alarm globally.
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:
SoFi Technologies and Adtalem Global Education Following Zacks Rank Upgrade
Shares of SoFi Technologies, Inc. (SOFI - Free Report) have gained 32.3% (versus the S&P 500’s 2.1% increase) since it was upgraded to a Zacks Rank #2 (Buy) on October 31.
Another stock, Adtalem Global Education Inc. (ATGE - Free Report) , which was also upgraded to a Zacks Rank #2 on October 30, has returned 26.6% (versus the S&P 500’s 1.7% rise) 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 +21.6% in the year-to-date period through November 4, 2024, vs. +28.3% for the S&P 500 index and +18.6% 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 late 2022.
The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by almost 13 percentage points since 1988 (through November 4, 2024, the Zacks # 1 Rank stocks generated an annualized average return of +24.1% since 1988 vs. +11.2% for the S&P 500 index)
Zacks Recommendation Upgrades Lisata Therapeutics and InterDigital
Shares of Lisata Therapeutics, Inc. (LSTA - Free Report) and InterDigital, Inc. (IDCC - Free Report) have advanced 36% and 35.2% (versus the S&P 500’s 4.1% rise), respectively, since their Zacks Recommendation was upgraded to Outperform on November 1.
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.
Zacks Focus List Stocks Cheniere Energy, Walt Disney Shoot Up
Shares of Cheniere Energy, Inc. (LNG - Free Report) , which belongs to the Zacks Focus List, have gained 18.1% over the past 12 weeks. The stock was added to the Focus List on September 6, 2022. Another Focus-List holding, Walt Disney Company (DIS - Free Report) , which was added to the portfolio on March 23, 2020, has returned 16.8% over the past 12 weeks. The S&P 500 has advanced 3.3% over this period.
The Focus List portfolio returned +26.86% in 2024 (through November 30) vs. +28.09% for the S&P 500 index and +20.56% 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 +12.11% (through November 30, 2024). This compares to a +10.55% annualized return for the S&P 500 index and +10.41% for the equal-weight version of the 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 Fiserv & AutoZone Make Significant Gains
Fiserv, Inc. (FI - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 12.5% over the past 12 weeks. AutoZone, Inc. (AZO - Free Report) has followed Fiserv with 7.8% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned +5.62% in November 2024 vs. the S&P 500 index’s +5.87% return (IVV ETF).
For the year-to-date period (through the end of November 2024), the portfolio returned +24.07% vs. +28.1% for the S&P 500 index.
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 Automatic Data Processing and Quest Diagnostics Outperform Peers
Automatic Data Processing, Inc. (ADP - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 2.3% over the past 12 weeks. Another ECDP stock, Quest Diagnostics Incorporated (DGX - Free Report) , has also climbed 0.8% 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 +3.06% in November 2024 vs. the S&P 500 index’s +5.87% gain and the Dividend Aristocrats ETF’s (NOBL - Free Report) +4.85%.
For the year-to-date period (through November 30th), the portfolio returned +15.55% vs. +28.1% for the S&P 500 index and +15.61% 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.
Zacks Top 10 Stocks Coherent Delivers Solid Returns
Coherent Corp. (COHR - Free Report) , from the Zacks Top 10 Stocks for 2025, has jumped 12.2% since the list was released on January 2. During this period, the S&P 500 has increased by +1.01%.
The Top 10 portfolio returned +71.88% this year through November 30, vs. +28.09% for the S&P 500 index and +20.56% 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 +2,112.57% through November 30, 2024, vs. +475.56% for the S&P 500 index. The portfolio has produced an average return of +26.6% in the period 2012 through November 30, 2024, vs. +12.83% for the S&P 500 index and +10.93% for the equal-weight version of the index.
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Beat the Market the Zacks Way: SoFi Technologies, Lisata Therapeutics, AutoZone in Focus
The three most widely followed indexes have ended positively in the holiday-shortened trading week. The Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average have gained by 0.69%, 0.60% and 0.37%, respectively.
After a solid rebound in 2024, Wall Street stocks pulled back further in first week of 2025 as investors weighed in solid labor market data. The number of Americans filing new applications for unemployment benefits dropped 9,000 to 211,000 for the week ending December 28, marking an eight-month low. Continuing claims declined 52,000 to 1,844,000 from the previous week’s revised level of 1,896,000. Resilience in the labor market is supporting the Federal Reserve's projections for fewer interest rate cuts this year.
On the global front, a fresh outbreak of Human Metapneumovirus (HMPV) in China has raised alarm globally.
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:
SoFi Technologies and Adtalem Global Education Following Zacks Rank Upgrade
Shares of SoFi Technologies, Inc. (SOFI - Free Report) have gained 32.3% (versus the S&P 500’s 2.1% increase) since it was upgraded to a Zacks Rank #2 (Buy) on October 31.
Another stock, Adtalem Global Education Inc. (ATGE - Free Report) , which was also upgraded to a Zacks Rank #2 on October 30, has returned 26.6% (versus the S&P 500’s 1.7% rise) 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 +21.6% in the year-to-date period through November 4, 2024, vs. +28.3% for the S&P 500 index and +18.6% 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 late 2022.
The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by almost 13 percentage points since 1988 (through November 4, 2024, the Zacks # 1 Rank stocks generated an annualized average return of +24.1% since 1988 vs. +11.2% for the S&P 500 index)
You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check SoFi Technologies’ historical EPS and Sales here>>>
Check Adtalem Global Education’s historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrades Lisata Therapeutics and InterDigital
Shares of Lisata Therapeutics, Inc. (LSTA - Free Report) and InterDigital, Inc. (IDCC - Free Report) have advanced 36% and 35.2% (versus the S&P 500’s 4.1% rise), respectively, since their Zacks Recommendation was upgraded to Outperform on November 1.
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.
Zacks Focus List Stocks Cheniere Energy, Walt Disney Shoot Up
Shares of Cheniere Energy, Inc. (LNG - Free Report) , which belongs to the Zacks Focus List, have gained 18.1% over the past 12 weeks. The stock was added to the Focus List on September 6, 2022. Another Focus-List holding, Walt Disney Company (DIS - Free Report) , which was added to the portfolio on March 23, 2020, has returned 16.8% over the past 12 weeks. The S&P 500 has advanced 3.3% over this period.
The Focus List portfolio returned +26.86% in 2024 (through November 30) vs. +28.09% for the S&P 500 index and +20.56% 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 +12.11% (through November 30, 2024). This compares to a +10.55% annualized return for the S&P 500 index and +10.41% for the equal-weight version of the 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 Fiserv & AutoZone Make Significant Gains
Fiserv, Inc. (FI - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 12.5% over the past 12 weeks. AutoZone, Inc. (AZO - Free Report) has followed Fiserv with 7.8% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned +5.62% in November 2024 vs. the S&P 500 index’s +5.87% return (IVV ETF).
For the year-to-date period (through the end of November 2024), the portfolio returned +24.07% vs. +28.1% for the S&P 500 index.
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 Automatic Data Processing and Quest Diagnostics Outperform Peers
Automatic Data Processing, Inc. (ADP - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 2.3% over the past 12 weeks. Another ECDP stock, Quest Diagnostics Incorporated (DGX - Free Report) , has also climbed 0.8% 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 Automatic Data Processing's dividend history here>>>
Check Quest Diagnostics' 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 +3.06% in November 2024 vs. the S&P 500 index’s +5.87% gain and the Dividend Aristocrats ETF’s (NOBL - Free Report) +4.85%.
For the year-to-date period (through November 30th), the portfolio returned +15.55% vs. +28.1% for the S&P 500 index and +15.61% 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 Stocks Coherent Delivers Solid Returns
Coherent Corp. (COHR - Free Report) , from the Zacks Top 10 Stocks for 2025, has jumped 12.2% since the list was released on January 2. During this period, the S&P 500 has increased by +1.01%.
The Top 10 portfolio returned +71.88% this year through November 30, vs. +28.09% for the S&P 500 index and +20.56% 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 +2,112.57% through November 30, 2024, vs. +475.56% for the S&P 500 index. The portfolio has produced an average return of +26.6% in the period 2012 through November 30, 2024, vs. +12.83% for the S&P 500 index and +10.93% for the equal-weight version of the index.