Yahoo Finance Beat the Market Like Zacks: NVIDIA, Clorox, Procter & Gamble in Focus
The three most widely followed indexes closed the week in the red amid choppy trading. The S&P 500 declined 0.1%, while the Dow Jones Industrial Average and the Nasdaq Composite lost 0.2% and 0.4%, respectively.
The week’s trade was heavily influenced by mixed to disappointing first-quarter 2023 earnings and outlook provided by corporate behemoths, which presented a grim picture for the months ahead. Treasury yields were on the rise, and economic data released throughout the week suggested a broad economic slowdown in various sectors.
The economy shows signs of the Fed’s policies taking effect, with inflation metrics pointing downward and sectors slowing. Yet, market participants are worried that a recession is inevitable if the Fed remains on its path of accelerated interest rate hikes. Currently, investors are stoic and watchful as they price in a 25 bps hike from the Fed’s May meeting.
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:
Carrols Restaurant and Graphite Bio Surge Following Zacks Rank Upgrade
Shares of Carrols Restaurant Group, Inc. TAST have soared 79.4% since it was upgraded to a Zacks Rank #2 (Buy) on February 7.
Another stock, Graphite Bio, Inc. GRPH, which was also upgraded to a Zacks Rank #2 on February 6, has returned 34.8% 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 (Strong Buy) 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 Carrols Restaurant’s historical EPS and Sales here>>>
Check Graphite Bio’s historical EPS and Sales here>>>
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Zacks Recommendation Upgrade Drives Telenor and Omnicom Higher
Shares of Telenor ASA TELNY and Omnicom Group Inc. OMC have advanced 12% and 3.1% since their Zacks Recommendation was upgraded to Outperform on February 7.
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 NVIDIA, Novo Nordisk High
Shares of NVIDIA Corporation NVDA, which belongs to the Zacks Focus List, have risen 37% over the past 12 weeks. The stock was added to the Focus List on May 20, 2019. Another Focus-List holding, Novo Nordisk A/S NVO, which was added to the portfolio on March 7, 2023, has returned 25.5% 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 February 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 McCormick and Clorox Make Significant Gains
McCormick & Company, Incorporated MKC, a component of our Earnings Certain Admiral Portfolio (ECAP), jumped 16.6% over the past 12 weeks. The Clorox Company CLX followed McCormick with 16.5% 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 Procter & Gamble and Fastenal Outperform Peers
The Procter & Gamble Company PG, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 10.6% over the past 12 weeks. Another ECDP stock, Fastenal Company FAST, has climbed 10.5% 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 Procter & Gamble’s dividend history here>>>
Check Fastenal’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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
Fastenal Company (FAST) : Free Stock Analysis Report
Omnicom Group Inc. (OMC) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
The Clorox Company (CLX) : Free Stock Analysis Report
McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report
Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
Telenor ASA (TELNY) : Free Stock Analysis Report
Graphite Bio, Inc. (GRPH) : Free Stock Analysis Report
