Beat the Market Like Zacks: NVIDIA, VirTra, Rockwell Medical in Focus
All three most widely followed indexes closed last week in the green. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite advanced 1.3%, 2.6% and 3.3%, respectively. For the tech-heavy Nasdaq, this marked the eighth consecutive winning week.
Stocks did well throughout the week on the back of encouraging inflation numbers and the Fed’s much anticipated rate-hike pause. However, during the latter part of the week, the market pared some of the gains it had made earlier as cautionary comments made by Fed officials started to sink in. The rate-hike cycle might have come to an end as of now, but it is still likely to be resumed at the next Fed FOMC meeting.
In fact, there is a majoritarian view that the central bank would indeed re-embark on its path of policy-tightening from its next meeting. A few officials have suggested that there would be at least another half a percentage point hike before the year ends. They have also warned that although headline inflation is definitively coming down, core inflation is not.
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:
Rockwell Medical and VirTra Surge Following Zacks Rank Upgrade
Shares of Rockwell Medical, Inc. RMTI have soared 129.4% (versus the S&P 500’s 8.5% increase) since it was upgraded to a Zacks Rank #2 (Buy) on April 5.
Another stock, VirTra, Inc. VTSI, which was upgraded to a Zacks Rank #1 (Strong Buy) on April 4, has returned 41.9% (versus the S&P 500’s 7.9% increase) 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 stocks here >>>
A hypothetical portfolio of Zacks Rank #1 (Strong Buy) stocks returned +2.7% this year (through May 15th) vs. +7.69% for the S&P 500 index.
Check Rockwell Medical’s historical EPS and Sales here>>>
Check VirTra’s historical EPS and Sales here>>>
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Zacks Recommendation Upgrade Drives Lisata and Unum Higher
Shares of Lisata Therapeutics, Inc. LSTA and Unum Group UNM have advanced 23.3% (versus the S&P 500’s 8.3% rise) and 13.4% (versus the S&P 500’s 7.4% increase), respectively, since their Zacks Recommendation was upgraded to Outperform on April 3 and April 17, 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 NVIDIA, Shopify Shoot Up
Shares of NVIDIA Corporation NVDA, which belongs to the Zacks Focus List, have risen 57% over the past 12 weeks. The stock was added to the Focus List on May 20, 2019. Another Focus-List holding, Shopify Inc. SHOP, which was added to the portfolio on September 6, 2022, has returned 41.3% over the past 12 weeks. The S&P 500 has gained 11.3% over this period.
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.
The 50-stock Zacks Focus List model portfolio returned +9.14% in 2023 (through May 31st) vs. +9.64% for the 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 +10.75% through May 31st, 2023. This compares to a +9.2% 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 McCormick and AmerisourceBergen Make Significant Gains
McCormick & Company MKC, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 30.1% over the past 12 weeks. AmerisourceBergen Corporation ABC has followed McCormick with 21.3% returns.
ECAP, which consists of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks, returned +3.05% in 2023 (through May 31st) vs. +9.64% 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 Intercontinental Exchange and Fastenal Outperform Peers
Intercontinental Exchange ICE, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 15.7% over the past 12 weeks. Another ECDP stock, Fastenal Company FAST, has climbed 9.4% 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 Intercontinental’s dividend history here>>>
Check Fastenals’ 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.
ECDP returned -3.2% in 2023 (through May 31st) vs. +9.64% for the S&P 500 index and +1.39% for the ProShares S&P 500 Dividend Aristocrats ETF 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.
Celsius Makes It Into The Zacks Top 10 Stocks
Celsius Holdings, Inc. CELH, from the Zacks Top 10 Stocks for 2023, has gained 39.1% year to date, which compares to a 15.7% gain for the S&P 500 Index.
The portfolio returned +7.12% through the end of May 2023 vs. +9.64% for the S&P 500 (the equal-weighted index, a more appropriate benchmark returned -0.63% in the same time period). The portfolio returned -15.8% in 2022 vs. -18.1% for the S&P 500 index. Since 2012, the Top 10 portfolio has generated an annualized return of +22.4% vs. +12.5% for the S&P 500 index.
Since the start of 2012, the Zacks Top 10 Stocks delivered a cumulative return of 827.6% through the end of 2022 versus a 265% cumulative return for the S&P 500 Index.
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
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
Fastenal Company (FAST) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report
Unum Group (UNM) : Free Stock Analysis Report
McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report
Rockwell Medical, Inc. (RMTI) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
VirTra, Inc. (VTSI) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
Lisata Therapeutics, Inc. (LSTA) : Free Stock Analysis Report
