Last Friday, the three most widely followed benchmark indexes closed a mixed week. The Nasdaq Composite and the S&P 500 declined 3.5% and 1%, respectively, while the Dow Jones Industrial Average advanced about 1%.
Throughout the week, the Trump administration’s tariff policies continued to influence trading in the markets. President Trump’s tariff announcements on Canada and Mexico varied between being imposed next week and being delayed till April. The probable tariff imposition on the European Union also stoked inflation fears in investors. Consumer confidence came in pretty low.
However, probably the biggest event of the week was the showdown between President Trump and President Zelensky at the Oval Office. While the markets recovered after a shaky session, all eyes will be keenly on the developing situation of the U.S-Ukraine deal about ending the war with Russia.
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:
Verona Pharma and USA Compression Surge Following Zacks Rank Upgrade
Shares of Verona Pharma plc VRNA have gained 50.7% (versus the S&P 500’s 0.8% increase) since it was upgraded to a Zacks Rank #2 (Buy) on January 10.
Another stock, USA Compression Partners, LP USAC, which was also upgraded to a Zacks Rank #2 on January 7, has returned 13.1% (versus the S&P 500’s 0.2% decrease) 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.
A hypothetical portfolio of Zacks Rank # 1 (Strong Buy) stocks returned +22.3% in 2024, vs. +28% for the S&P 500 index and +19.9% for the equal-weight version of the S&P 500 index.
This hypothetical portfolio returned +20.63% in 2023 vs. +24.83% for the S&P 500 index and +15% for the equal-weight S&P 500 index.
The portfolio of Zacks Rank #1 stocks is an equal-weight portfolio, while the S&P 500 index is a market-cap-weighted index that has been notably distorted by the concentrated performance of mega-cap stocks since late 2022.
The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by almost 13 percentage points since 1988 (through year-end 2024, the Zacks # 1 Rank stocks generated an annualized average return of +24.3% since 1988 vs. +11.4% for the S&P 500 index).
You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check Verona Pharma’s historical EPS and Sales here>>>
Check USA Compression’s historical EPS and Sales here>>>
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Zacks Recommendation Upgrades Robinhood Markets and CyberAgent
Shares of Robinhood Markets, Inc. HOOD and CyberAgent, Inc. CYGIY have advanced 34.5% (versus the S&P 500’s 1.4% rise) and 18.7% (versus the S&P 500’s 1% rise) since their Zacks Recommendation was upgraded to Outperform on January 1 and December 31, 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 3M Company, Visa Shoot Up
Shares of 3M Company MMM, which belongs to the Zacks Focus List, have gained 18.3% over the past 12 weeks. The stock was added to the Focus List on June 29, 2023. Another Focus-List holding, Visa Inc. V, which was added to the portfolio on May 30, 2017, has returned 15.9% over the past 12 weeks. The S&P 500 has declined 1.6% over this period.
The Focus List portfolio returned +18.41% in 2024 vs. +25.04% for the S&P 500 index and +13% for the equal-weight S&P 500 index.
The 50-stock Zacks Focus List model portfolio returned +29.54% in 2023 vs. +26.28% for the S&P 500 index and +13.61% for the equal-weight 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 +11.69% (through year-end 2024). This compares to a +10.38% annualized return for the S&P 500 index and +10.03% for the equal-weight version of the 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 Check Point & Fiserv Make Significant Gains
Check Point Software Technologies Ltd. CHKP, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 17.7% over the past 12 weeks. Fiserv, Inc. FI has followed Check Point with 9.4% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -6.29% in December 2024 vs. the S&P 500 index’s -2.41% return (SPY ETF).
For the year 2024, the portfolio returned +16.26% vs. +24.89% for the S&P 500 index (SPY ETF).
In 2023, the portfolio returned +12.17% vs. +26.28% 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, 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 and Amgen Outperform Peers
Starbucks Corporation SBUX, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 14% over the past 12 weeks. Another ECDP stock, Amgen Inc. AMGN, has climbed 10.7% 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 Starbucks’ dividend history here>>>
Check Amgen'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 Zacks Earnings Certain Dividend Portfolio (ECDP) returned -7.44% in December 2024 vs. the S&P 500 index’s -2.41% pullback and the Dividend Aristocrats ETF’s (NOBL) -6.72% decline.
For the full-year 2024, the portfolio returned +6.95% vs. +24.89% for the S&P 500 index and +6.72% for NOBL.
The portfolio returned -0.9% in 2023 vs. +26.28% for the S&P 500 index and +8.11% for 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.
Zacks Top 10 Stock Stride Delivers Solid Returns
Stride, Inc. LRN, from the Zacks Top 10 Stocks for 2025, has jumped 31.6% year to date compared to the S&P 500 Index’s +1.4% increase.
The Top 10 portfolio returned +62.98% in 2024, vs. +25.04% for the S&P 500 index and +13% for the equal-weight version of the index.
The Top 10 portfolio returned +25.15% in 2023 vs. +26.28% for the S&P 500 index.
Since 2012, the Top 10 portfolio has produced a cumulative return of +1,998% through year-end 2024, vs. +461.86% for the S&P 500 index. The portfolio has produced an average return of +25.9% in the period 2012 through year-end 2024, vs. +12.49% for the S&P 500 index and +10.16% for the equal-weight version of the index.
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