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Beat the Market Like Zacks: JPMorgan, Berkshire Hathaway, Amgen in Focus

The three most widely followed indexes made big gains last week, providing some relief from the market's brutal sell-off this year. The S&P 500 and the tech-heavy Nasdaq advanced 5.9% and 8.1%, marking their biggest weekly gains since June and March, respectively. The Dow Jones Industrial Average rose 4.2%.

The week’s gains were led by the latest CPI numbers, which showed that inflation and core inflation had grown less than expected year over year in October, and headline inflation had declined from its June peak. This, and the expectation of a less hawkish Fed, tempered the buy-the-dip view.

China relaxed a few of its stringent COVID-19 measures during the week, increasing optimism in the market and sending crude prices higher. However, investors remained apprehensive about a global recession in 2023 and are likely to tread carefully, keeping an eye on the direction in which the Fed will take the economy.

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:

McKesson, TravelCenters Rise Following Zacks Rank Upgrade

Shares of McKesson Corporation MCK have gained 4% since it was upgraded to a Zacks Rank #2 (Buy) on August 1.

Another stock, TravelCenters of America Inc. TA, was upgraded to a Zacks Rank #1 (Strong Buy) on August 3 and has returned 2.6% 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 (Strong Buy) 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 (Strong Buy) stocks here >>>

Check McKesson’s historical EPS and Sales here>>>

Check TravelCenters of America’s historical EPS and Sales here>>> 

Zacks Investment Research
Zacks Investment Research

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Zacks Recommendation Upgrade Drives Select Energy and Berkshire Hathaway Higher 

Shares of Select Energy Services, Inc. WTTR and Berkshire Hathaway Inc. (BRK.B) have gained 21.9% and 6.8% since their Zacks Recommendation was upgraded to Outperform on August 23 and August 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 Model Portfolio Stocks Caterpillar, JPMorgan Chase Soar High

Shares of Caterpillar Inc. CAT, which belongs to the Zacks Focus List, have gained 20.9% over the past 12 weeks. The stock was added to the Focus List on April 18, 2017. Another Focus-List holding, JPMorgan Chase & Co. JPM, which was added to the portfolio on October 10, 2016, has returned 14.1% 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 February 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 Rollins, Novo Nordisk Deliver Solid Returns

Rollins, Inc. ROL, a component of our Earnings Certain Admiral Portfolio (ECAP), jumped 13.8% over the past 12 weeks. Novo Nordisk A/S NVO followed Rollins with 6.6% 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 Amgen, Quest Diagnostics Outperform Peers

Amgen Inc. AMGN, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 13.6% over the past 12 weeks. Another ECDP stock, Quest Diagnostics Incorporated DGX, has climbed 11.5% 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 Amgen’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 ECDP has consistently outperformed the S&P 500 Dividend Aristocrats ETF NOBL.

Click here to access this portfolio on Zacks Advisor Tools.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Novo Nordisk AS (NVO) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report
McKesson Corporation (MCK) : Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
TravelCenters of America LLC (TA) : Free Stock Analysis Report
Rollins, Inc. (ROL) : Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
Select Energy Services (WTTR) : Free Stock Analysis Report
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Zacks Investment Research