The three most widely followed indexes in the United States ended in red in the holiday-shortened trading week. The Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average lost ground by 3.24%, 2.3%, and 3.41%, respectively, last week. Investors fear a potential slowdown in economic growth and increasing inflation due to ongoing trade policies and a tariff tussle between China and the United States, the world’s top two economies.
The University of Michigan reported that the consumer sentiment for April was 50.8, the lowest since June 2022 mostly due to concerns over rising inflation. The core Producer Price Index (PPI) increased by 0.3%, indicating ongoing price pressure. However, PPI for final demand decreased by 0.4% in March. According to the Department of Commerce retail sales in March were up 1.4% beating consensus estimate of 1.3%. On a year-over-year basis, retail sales were up 4.6%.
The Federal Reserve Chair Jerome Powell has stated that the Fed needed more clarity before making any policy adjustments, indicating a delay in further rate cuts. Market participants now expect the Federal Reserve to lower interest rates in December. The ongoing trade war, along with high chances of increasing inflation, would weaken job creation and impact business confidence and economic expansion.
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:
Brookdale Senior Living and Bank of East Asia Following Zacks Rank Upgrade
Shares of Brookdale Senior Living Inc. BKD have gained 14.7% (versus the S&P 500’s 14.2% decrease) since it was upgraded to a Zacks Rank #2 (Buy) on February 20.
Another stock, The Bank of East Asia, Limited BKEAY, which was upgraded to a Zacks Rank #2 on February 20, has returned 3.9% (versus the S&P 500’s 14.2% decrease) since then.
A hypothetical portfolio of Zacks Rank # 1 (Strong Buy) stocks returned -3.48% in January 2025 (through February 3rd) 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 Brookdale Senior Living’s historical EPS and Sales here>>>
Check Bank of East Asia’s historical EPS and Sales here>>>
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Zacks Recommendation Upgrades Pro-Dex and HCI
Shares of Pro-Dex, Inc. PDEX and HCI Group, Inc. HCI have advanced 68.6% (versus the S&P 500’s 9.9% decrease) and 11% (versus the S&P 500’s 11.5% fall) since their Zacks Recommendation was upgraded to Outperform on March 4 and March 3, 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 Uber Technologies, Palantir Technologies Shoot Up
Shares of Uber Technologies, Inc. UBER, which belongs to the Zacks Focus List, have gained 28.3% over the past 12 weeks. The stock was added to the Focus List on August 16, 2019. Another Focus-List holding, Palantir Technologies Inc. PLTR, which was added to the portfolio on March 26, 2024, has returned 11.1% over the past 12 weeks. The S&P 500 has decreased 12.7% over this period.
The Focus List portfolio returned -2.96% in the first quarter of 2025 vs. -4.30% for the S&P 500 index and -0.61% 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 +11.39% (through the end of 2025 Q1). This compares to a +10.03% annualized return for the S&P 500 index and +9.87% for the equal-weight version of the index in the same time period.
The portfolio lags the broader market over the preceding year, but leads over the preceding 3, 5, and 10-year periods.
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 Monster Beverage & Rollins Make Significant Gains
Monster Beverage Corporation MNST, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 18.7% over the past 12 weeks. Rollins, Inc. ROL has followed Monster Beverage with 14.7% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned +3.20% in the first quarter of 2025 vs. the S&P 500 index’s -4.30% decline (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 J. M. Smucker Outperform Peers
The Coca-Cola Company KO, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 17% over the past 12 weeks. Another ECDP stock, The J. M. Smucker Company SJM, has increased 12.6% 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 J. M. Smucker'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 to significantly mitigate risk.
The Zacks Earnings Certain Dividend Portfolio (ECDP) returned +5.74% in 2025 Q1 vs. the S&P 500 index’s -2.41% pullback and the Dividend Aristocrats ETF’s (NOBL) +3.11% return.
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 9% year to date, compared with the S&P 500 index’s 10.2% decrease.
The Top 10 portfolio returned -11% this year in 2025 Q1 vs. -4.3% for the S&P 500 index and -0.61% 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 +1767.4% through the end of 2025 Q1 vs. +437.9% for the S&P 500 index and +348.9% for the equal-weight version of the index. The portfolio has produced an average return of +24.2% in the period 2012 through 2025 Q1 vs. +11.79% for the S&P 500 index and +9.89% for the equal-weight version of the index.
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