Beat the Market Like Zacks: Boeing, Starbucks, Syndax Pharma in Focus
Two of the three most widely followed indexes closed their first losing week of the year on Friday. The tech-heavy Nasdaq Composite continued to progress, rising 0.6% in the week, but the S&P 500 and the Dow Jones Industrial Average declined 0.7% and 2.7%, respectively.
Economic data released through the week, especially from the yet-robust labor market, made investors nervous about the Fed not being satisfied with the current level of economic slowdown. Jobs, being a key indicator of how an economy is doing, can be a game-changing statistic, influencing the Fed to bring interest rates down. On the other hand, fears of a recession were further stoked by industrial production and the retail sector declining much higher than expected.
The markets are currently between a rock and a hard place, and investors are unable to make up their minds about what to make of the economic data. Robust numbers mean that the Fed’s inflation alarms might be ringing, and weak numbers suggest that the central bank may have already gone too far. Friday’s rebound from overselling earlier in the week, however, helped the Nasdaq keep its head above water as we go deeper into the earnings season.
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:
Banco Bilbao, Syndax Pharmaceuticals Soar Following Zacks Rank Upgrade
Shares of Banco Bilbao Vizcaya Argentaria, S.A. BBVA have surged 29.2% since it was upgraded to a Zacks Rank #1 (Strong Buy) on November 8.
Another stock, Syndax Pharmaceuticals, Inc. SNDX, which was also upgraded to a Zacks Rank #1 on the same day, has returned 17.6% 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.
This stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 to Zacks Rank #5 (Strong Sell), has an impressive externally audited track record, with Zacks Rank #1 stocks generating an average annual return of +24.8% since 1988. You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check Banco Bilbao’s historical EPS and Sales here>>>
Check Syndax Pharmaceutical’s historical EPS and Sales here>>>
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Zacks Recommendation Upgrade Drives CarParts and Tecnoglass Higher
Shares of CarParts.com, Inc. PRTS and Tecnoglass Inc. TGLS have surged 39.6% and 37.8% since their Zacks Recommendation was upgraded to Outperform on November 11 and November 7, 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 Model Portfolio Boeing, Sea Skyrocket
Shares of The Boeing Company BA, which belongs to the Zacks Focus List, have soared 43.7% over the past 12 weeks. The stock was added to the Focus List on March 23, 2020. Another Focus-List holding, Sea Limited SE, which was added to the portfolio on March 26,2020, has returned 32.9% over the past 12 weeks.
The Zacks Focus List is a model portfolio of 50 hand-picked stocks that possess the right fundamental ingredients to outperform the market over the next 12 months. These 50 stocks are picked from a long list of stocks with the highest Zacks Rank.
Since its inception on Feb 1, 1996, the Focus List portfolio has delivered an annualized return of +12.9%.
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 Thermo Fisher and Ball Rapidly Advance
Thermo Fisher Scientific Inc. TMO, a component of our Earnings Certain Admiral Portfolio (ECAP), jumped 17.8% over the past 12 weeks. Ball Corporation BALL followed Thermo Fisher with 17.4% returns.
ECAP is a model portfolio of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks.
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 Starbucks, Procter & Gamble Outperform Peers
Starbucks Corporation SBUX, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 20.6% over the past 12 weeks. Another ECDP stock, The Procter & Gamble Company PG, has climbed 5.7% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid the heightened market volatility contributed to this performance.
Check Starbucks’ dividend history here>>>
Check Procter & Gamble’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 ECDP has consistently outperformed the S&P 500 Dividend Aristocrats ETF NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
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The Boeing Company (BA) : Free Stock Analysis Report
Procter & Gamble Company The (PG) : Free Stock Analysis Report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Sea Limited Sponsored ADR (SE) : Free Stock Analysis Report
Banco Bilbao Viscaya Argentaria S.A. (BBVA) : Free Stock Analysis Report
CarParts.com, Inc. (PRTS) : Free Stock Analysis Report
Tecnoglass Inc. (TGLS) : Free Stock Analysis Report
Syndax Pharmaceuticals, Inc. (SNDX) : Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
Ball Corporation (BALL) : Free Stock Analysis Report
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