Market Recap

Last week witnessed a second consecutive winning streak for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite, with gains of 0.7%, 1.2%, and 2.3%, respectively. Decorating the occasion, the S&P 500 soared to its first all-time closing high in two years, signaling the entry into a bullish market. Amidst the murky waters of uncertainty about rate cut timelines, the resilience of the labor market shone through, buoyed by robust figures from various sectors and plummeting jobless claims. Though the consensus on a rate cut in March stood at 52%, a sharp decline from the previous week’s 80%, it indicated a tempered expectation for an early Fed intervention.

Zacks Insights Deliver Results

As investors grappled with market uncertainty, Zacks Research stood as an unwavering beacon of guidance, offering a tried-and-tested route to navigate the tempest. Despite the prevailing ambiguity, Zacks Research has a wealth of achievements over the past three months that investors can rely on to steer them through turbulent times.

Zacks Rank Spurs Annexon and Pennant Surge

Embodying the essence of the Zacks approach, Annexon, Inc. (ANNX) and The Pennant Group, Inc. (PNTG) demonstrated robust growth, gaining 75% and 23.3%, respectively, after being upgraded to a Zacks Rank #2 (Buy) in mid-November. The Zacks Rank, renowned for factoring in earnings estimate revisions, has consistently steered investors toward favorable stock price movements.

A hypothetical portfolio comprising Zacks Rank #1 (Strong Buy) stocks outperformed both the S&P 500 and the equal-weight S&P 500 index. Boasting an impressive track record, the Zacks Model Portfolio comprising Zacks Rank #1 stocks has continually outperformed the S&P index by over 13 percentage points since 1988.

Zacks Recommendation Upgrades Dream Finders and James Hardie

Zacks Recommendation breathed new life into Dream Finders Homes, Inc. (DFH) and James Hardie Industries plc (JHX), propelling their stocks up by 35.6% and 29.1%, respectively. Designed to predict performance over the next 6 to 12 months, the Zacks Recommendation, much like the Zacks Rank, finds its footing in earnings estimate revisions.

While these recommendations are quantitatively driven, our analysts exercise their judgment, taking into account factors such as valuation, industry conditions, and management effectiveness, going beyond rigid quantitative models.

Zacks Focus List Stocks Shopify, NVIDIA Soar

Shopify Inc. (SHOP) and NVIDIA Corporation (NVDA), members of the Zacks Focus List, demonstrated remarkable growth, with Shopify soaring by 72.4% after its addition to the Focus List in 2022, while NVIDIA, added in 2019, achieved a 46.9% increase in the past 12 weeks, outperforming the S&P 500 index by a significant margin.

The Zacks Focus List model portfolio yielded an impressive +21.72% in 2023, surpassing the S&P 500 index and the equal-weight S&P 500 index, thereby cementing its position as a driving force in the market.

Zacks ECAP Stocks Fair Isaac and Intuit Make Strides

Additionally, Fair Isaac Corporation (FICO), a constituent of our Earnings Certain Admiral Portfolio (ECAP), and Intuit Inc. (INTU) have made substantial gains, underscoring the efficacy of Zacks forecasting methodologies.

Riding on the wings of Zacks Research, investors can navigate the unforgiving waters of the market with clarity and confidence, leveraging actionable insights that have withstood the tests of time and volatility.

Zacks Portfolios Show Strong Performance Across the Board

Over the past 12 weeks, Fair Isaac Corporation (FICO) has jumped 48.6%, while Intuit Inc. (INTU) has followed with a return of 29.8%. These remarkable performances confirm the sustained appeal of Zacks portfolios in the current market landscape.

ECAP Fortifies Position Amid Volatility

The Zacks Earnings Certain Admiral Portfolio (ECAP) has exhibited its resilience by returning +12.17% in 2023, outperforming the S&P 500 index. The portfolio’s remarkable track record has been further bolstered by a -4.7% return in 2022 compared to the S&P 500’s -17.96%. This consistent performance underscores the portfolio’s ability to weather market uncertainties and minimize capital loss.

By holding shares of companies with a proven 20+ year track record of surviving recessionary periods, the ECAP has demonstrated its ability to maintain stable earnings growth, making it a reliable option for risk-averse investors.

ECDP Leverages Quality Dividend Stocks

The Earnings Certain Dividend Portfolio (ECDP) has also delivered notable performances, with Tractor Supply Company (TSCO) and Public Storage (PSA) returning 23.3% and 22.4%, respectively, over the past 12 weeks. This impressive showing is attributable to the growing investor interest in quality dividend stocks amidst heightened market volatility. With an extremely low Beta and a consistent earnings track record, the ECDP has proved to be a reliable choice for risk mitigation.

Top 10 Stocks Portfolio Continues to Thrive

CyberArk Software Ltd. (CYBR) from the Zacks Top 10 Stocks for 2024 has seen a notable 6.1% increase since the list was released, outperforming the S&P 500 Index, which only saw a 1.5% growth. The Top 10 portfolio has historically demonstrated its strength, returning +25.15% in 2023 and producing a cumulative return of +1060.9% since 2012. These performances underline the portfolio’s consistent ability to deliver solid returns over the long term.

For those seeking to access these Zacks model portfolios and benefit from their proven track records, Zacks Advisor Tools offers a cloud-based solution with a comprehensive suite of research resources. The tools allow investors to leverage the successful strategies embodied by these portfolios to make informed and potentially lucrative investment decisions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.