Beat the Market the Zacks Way: NVIDIA, Bilibili, Novo Nordisk in Focus
The three most widely followed indexes closed the week higher on Friday, with the tech-heavy Nasdaq posting the fourth-straight weekly gain. The Nasdaq Composite made considerable gains on a broader tech rally, rising 4.3% for the week. The S&P 500 and the Dow Jones Industrial Average advanced 2.5% and 1.8%, respectively.
Significant economic indicators like the PCE Inflation index showed softening demand alongside cooling inflation. This raises hope among investors that the Fed will be taking these numbers into consideration before their February meeting, in which they are expected to announce the next interest rate hike. Fourth-quarter GDP also came in higher than expectations, indicating that the Fed might be able to attain a soft landing of the economy despite their stringent policy measures.
Even as the earnings season remains mixed and the profit guidance is somewhat discouraging, there are clear signs emerging that inflation is on its way down and the economy is still resilient. This has created optimism among market participants about the central bank pushing interest rate hikes down to a possible 25 bps, as all eyes remain fixated on its February meet.
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:
Bilibili, Rockwell Medical Soar Following Zacks Rank Upgrade
Shares of Bilibili Inc. BILI have surged 119.3% since it was upgraded to a Zacks Rank #2 (Buy) on November 14.
Another stock, Rockwell Medical, Inc. RMTI, which was also upgraded to a Zacks Rank #2 on November 16, has returned 25.8% 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 Bilibili’s historical EPS and Sales here>>>
Check Rockwell Medical’s historical EPS and Sales here>>>
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Zacks Recommendation Upgrade Drives Bowman Consulting and Commercial Metals Higher
Shares of Bowman Consulting Group Ltd. BWMN and Commercial Metals Company CMC have surged 44% and 19.1% since their Zacks Recommendation was upgraded to Outperform on November 15 and November 14, 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 NVIDIA, Block Skyrocket
Shares of NVIDIA Corporation NVDA, which belongs to the Zacks Focus List, have soared 43.9% over the past 12 weeks. The stock was added to the Focus List on May 20, 2019. Another Focus-List holding, Block, Inc. SQ, which was added to the portfolio on March 28, 2017, has returned 39.5% 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 Novo Nordisk and Oracle Rapidly Advance
Novo Nordisk A/S NVO, a component of our Earnings Certain Admiral Portfolio (ECAP), jumped 22.9% over the past 12 weeks. Oracle Corporation ORCL followed Novo Nordisk with 17.1% 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 Home Depot, C.H. Robinson Outperform Peers
The Home Depot, Inc. HD, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 11.5% over the past 12 weeks. Another ECDP stock, C.H. Robinson Worldwide, Inc. CHRW, has climbed 8.9% 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 Home Depot’s dividend history here>>>
Check C.H. Robinson’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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Novo Nordisk A/S (NVO) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Commercial Metals Company (CMC) : Free Stock Analysis Report
Rockwell Medical, Inc. (RMTI) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
Bilibili Inc. Sponsored ADR (BILI) : Free Stock Analysis Report
Bowman Consulting Group Ltd. (BWMN) : Free Stock Analysis Report
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