The three most widely followed U.S. indexes ended in red last week. The S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite slid 1.36%, 0.90% and 0.84%, respectively. The aggressive shifting of U.S. policies and foreign trade tariffs with major trading partners under President Donald Trump’s new administration has compelled investors to rethink their strategies. Concerns also surfaced over a slowdown in economic growth and rise in inflation due to the new government policies.
Personal consumption expenditure (PCE), the Fed’s preferred inflation gauge, increased by 0.3% in January, higher than the Federal Reserve’s 2% target, and showed a 2.5% annual rate. The disproportion between the rise in personal income by 0.9% and the unexpected decline in personal spending by 0.2% in January indicates that average Americans are concerned about future economic conditions. Retail sales and building construction decreased last month. Also, consumer sentiment and consumer confidence indexes failed to meet expectations in January. The manufacturing and services PMI (purchasing managers’ index) published by the Institute of Supply Management (ISM) came in at 50.3 and 53.5 in February compared to 50.9 and 52.8 in January, respectively. Any reading above 50 indicates an expansion in activities.
The U.S. economy added 151,000 jobs in February while the unemployment rate went up to 4.1% from 4% the previous month. Underlying weaknesses are becoming more apparent, as trade policy instability and federal spending cuts pose risks to future economic growth.
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:
NioCorp Developments and TXO Partners Following Zacks Rank Upgrade
Shares of NioCorp Developments Ltd. NB have gained 38.5% (versus the S&P 500’s 1% decrease) since it was upgraded to a Zacks Rank #2 (Buy) on January 14.
Another stock, TXO Partners, L.P. TXO, which was upgraded to a Zacks Rank #1 (Strong Buy) on January 14, has returned 9.8% (versus the S&P 500’s 1% decrease) since then.
A hypothetical portfolio of Zacks Rank # 1 stocks returned -3.48% in January 2025 (through February 3) vs. -0.60% for the S&P 500 index and -2.75% for the equal-weight version of the index
This portfolio 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 the end of January 2025, the Zacks # 1 Rank stocks generated an annualized average return of +23.9% since 1988 vs. +11.3% for the S&P 500 index).
You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check NioCorp Developments’ historical EPS and Sales here>>>
Check TXO Partners’ historical EPS and Sales here>>>
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Zacks Recommendation Upgrades AngloGold Ashanti and Fox Corporation
Shares of AngloGold Ashanti plc AU and Fox Corporation FOX have advanced 15.8% (versus the S&P 500’s 2.9% decrease) and 10.5% (versus the S&P 500’s 2.7% fall) since their Zacks Recommendation was upgraded to Outperform on January 16 and January 6, 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 Sea, Uber Technologies Shoot Up
Shares of Sea Limited SE, which belongs to the Zacks Focus List, have gained 16.7% over the past 12 weeks. The stock was added to the Focus List on March 26, 2020. Another Focus-List holding, Uber Technologies, Inc. UBER, which was added to the portfolio on August 16, 2019, has returned 15.4% over the past 12 weeks. The S&P 500 has decreased 5.3% over this period.
The Focus List portfolio returned +0.87% this year through the end of February 2025 vs. +1.44% for the S&P 500 index and +2.87% for the equal-weight version of the index.
The 50-stock Zacks 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 portfolio had 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 returned -15.2% vs. the S&P 500 index’s -17.96%.
Since 2004, the Focus List portfolio has produced an annualized return of +11.63% (through the end of February 2025). This compares to a +10.37% annualized return for the S&P 500 index and +10.09% 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 Amgen & Intercontinental Exchange Make Significant Gains
Amgen Inc. AZO, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 19.2% over the past 12 weeks. Intercontinental Exchange, Inc. ICE has followed Amgen with 9.2% 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 Coca-Cola and Johnson & Johnson Outperform Peers
The Coca-Cola Company KO, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 14.2% over the past 12 weeks. Another ECDP stock, Johnson & Johnson JNJ, has increased 11.6% 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 Coca-Cola's dividend history here>>>
Check Johnson & Johnson’ 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 to 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 Primo Brands Delivers Solid Returns
Primo Brands Corporation PRMB, from the Zacks Top 10 Stocks for 2025, has jumped 2.7% year to date, compared with the S&P 500 index’s 1.7% decrease.
The Top 10 portfolio returned -2.37% this year (through February 2025) vs. +1.44% for the S&P 500 index and +2.87% for the equal-weight version of the index.
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 portfolio had 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 +1948.35% through the end of February 2025 vs. +469.98% for the S&P 500 index and +364.63% for the equal-weight version of the index. The portfolio has produced an average return of +25.29% in the period 2012 through the end of February 2025, vs. +12.47% for the S&P 500 index and +10.32% for the equal-weight version of the index.
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