Wall Street ended last week with gains due to positive signs of economic indicators. The Nasdaq technology index, the S&P 500 and the Dow Jones Industrial Average ended the week up 2.2%, 4% and 5.7%, respectively.
While Treasury yields continued to rise, signals from the Fed that interest rate hikes will be slowed from December and eventually suspended in early 2023 helped boost the market. An encouraging earnings report from Apple Inc. AAPL managed to stop the rot of the big tech giants and the sector recovered within a week.
Moreover, GDP rose modestly in the third quarter, fueling hopes that the market has already bottomed out. With the Fed already seeing the results of its tight policy and intending to go slow, fears of a looming recession have dissipated.
Regardless of market conditions, we here at Zacks provide investors with unbiased advice 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 uncertainty in the market, you may want to look at our achievements to better prepare for the next move.
Here are some of our key achievements:
Inventiva, Koppers Holdings rose after a Zacks upgrade
Actions Inventiva SA IVA increased 22.2% after being upgraded to a Zacks Rank #2 (Buy) on August 11th.
one more stock Koppers Holdings Inc. COPIt was upgraded to a Zacks Rank 2 on August 8 and has since returned 5.8%.
Zacks Rank, our short-term ranking system, is based on a revision of earnings estimates. Empirical research shows a strong correlation between trends in earnings estimates revisions and short-term stock price movements.
This stock rating system, which uses four earnings-related factors to categorize stocks into five groups ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive track record that has been externally verified audited, with a Zacks Rank #1 Stock with an average annual return of +24.8% since 1988. You see full list of today’s Zacks Rank #1 stocks (Strong Buy) here >>>
Check out Inventiva’s historical earnings per share and sales here>>>
Check Koppers Holdings historical earnings per share and sales here>>>
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Zacks Recommendation Upgrade Drives KnowBe4 and Custom Truck Higher
Actions KnowBe4, Inc. KNBE and Custom Truck One Source, Inc. CTOS gained 26.7% and 5.3% after their Zacks Recommendations were upgraded to Perform on August 12 and August 10, respectively.
While the Zacks Rank is our short-term rating system that performs best over one to three months, the Zacks Guide aims to predict performance over the next six to 12 months. However, like the Zacks Rank, the basis for the Zacks Recommendation is trends in revised earnings estimates.
Zacks Guide classifies stocks into three groups — outperform, neutral and underperform. Although these recommendations are quantified, our analysts have the ability to override them for the more than 1,100 stocks they closely monitor based on their better assessment of factors such as valuation, industry conditions and management performance than a quantitative model .
To access our research reports with Zacks Recommendations for the 1,100+ stocks we cover, click here>>>
Zacks Focus List Model Portfolio Axon shares ahead of Caterpillar
Actions Axon Enterprise, Inc. AXON, which is on the Zacks Focus List, is up 21.8% over the past 12 weeks. The stock was added to the Focus List on June 3, 2020. Another Focus-List holding, Caterpillar Inc. CATwhich was added to the portfolio on April 18, 2017, has returned 19.4% over the past three months.
The Zacks Focus List is a model portfolio of 50 hand-picked stocks that have the right fundamental ingredients to outperform the market over the next 12 months. These 50 stocks are selected 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 annual return of +12.9%.
Access all of our powerful research, tools and analysis, including Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more as part of Zacks Premium. Get full access now >>
Zacks ECAP Stocks Tractor Supply, AmerisourceBergen provide solid returns
Tractor supply TSCOthe Earnings Certain Admiral (ECAP) component of our portfolio, jumped 18.8% over the past 12 weeks. AmerisourceBergen Corporation the alphabet followed by Tractor Supply with a gain of 14.4%.
ECAP is an exemplary portfolio of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks.
With little or no turnover and annual rebalancing frequency, ECAP seeks to minimize capital losses by holding stocks of companies whose earnings streams demonstrate a proven 20+ year history of surviving periods of recession with minimal impact on aggregate earnings growth relative to the overall S&P 500 .
ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution for accessing Zacks’ award-winning mutual fund and ETF research. Click here to schedule a showing.
Zacks ECDP JM Smucker, Amgen Shares Outperform Peers
The JM Smucker Company SJM, which is part of our Dividend Eligible Portfolio (ECDP), has returned 13.2% over the past 12 weeks. Another ECDP action, Amgen Inc. AMGN, rose 10.9% over the same time period. Of course, investors’ preference for quality dividend stocks to provide an income stream amid heightened market volatility contributed to these figures.
Check out JM Smucker’s dividend history here >>>
Check out Amgen’s dividend history here>>>
This portfolio of 25 stocks with extremely low beta and a history of minimal return volatility over the last 20+ years helps reduce risk significantly. ECDP consistently outperforms the S&P 500 Dividend Aristocrats ETF NOBLE.
Click here to access this portfolio Zacks Advisor Tools.
7 best promotions for the next 30 days
Just released: Experts highlight 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They consider these tickers “likely to be early prices.”
Since 1988, the full list has outperformed the market by more than 2 times with an average increase of +24.8% per year. Therefore, do not forget to immediately pay attention to these 7 selected specimens. See them now >>
Apple Inc. (AAPL): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
Tractor Supply Company (TSCO): Free Stock Analysis Report
AmerisourceBergen Corporation (ABC): Free Stock Analysis Report
JM Smucker Company (SJM): Free Stock Analysis Report
Koppers Holdings Inc. (KOP): Free Stock Analysis Report
Axon Enterprise, Inc (AXON): Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
ADR (IVA) sponsored by Inventiva SA: free stock analysis report
Custom Truck One Source, Inc. (CTOS): Free Stock Analysis Report
KnowBe4, Inc. (KNBE): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
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