Beat the Market the Zacks Way: Shopify, 3M, Walmart in Focus

Last Friday, the three most widely followed benchmark indexes closed a mixed week. The Nasdaq Composite and the S&P 500 declined 1.6% and 1%, respectively, while the Dow Jones Industrial Average rose 0.3%.For January, all three indexes notched up gains, with the Dow, the S&P 500 and the Nasdaq adding 4.7%, 2.7% and 1.6%, respectively.Chinese artificial intelligence (AI) sensation DeepSeek weighed down on Wall Street to start the week off, and investors wondered whether the chipmakers ruling the markets over the past year and a half are overbought. This led to a broad-based sell-off, which was also characterized by consumer sentiment numbers coming in low for the month and pending home sales falling drastically.There was no respite toward the end of the week as President Trump’s tariff impositions on countries like Canada, Mexico and China fed fuel to inflation fears, and the market felt the heat.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:Trip.com and Arqit Quantum Surge Following Zacks Rank UpgradeShares of Trip.com Group Limited TCOM have gained 8.7% (versus the S&P 500’s 0.7% increase) since it was upgraded to a Zacks Rank #1 (Strong Buy) on November 26.Another stock, Arqit Quantum Inc. ARQQ, which was upgraded to a Zacks Rank #2 (Buy) on November 30, has returned 2.6% (versus the S&P 500’s 0.1% 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 Trip.com’s historical EPS and Sales here>>>Check Arqit’s historical EPS and Sales here>>>Image Source: Zacks Investment ResearchZacks Recommendation Upgrades Viking Holdings and Morgan Stanley Direct LendingShares of Viking Holdings Ltd VIK and Morgan Stanley Direct Lending Fund MSDL have advanced 11.7% (versus the S&P 500’s 1% rise) and 1.3% (versus the S&P 500’s 0.2% rise) since their Zacks Recommendation was upgraded to Outperform on November 25 and November 27, 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 Shopify, Sea Limited Shoot UpShares of Shopify Inc. SHOP, which belongs to the Zacks Focus List, have gained 49.3% over the past 12 weeks. The stock was added to the Focus List on September 6, 2022. Another Focus-List holding, Sea Limited SE, which was added to the portfolio on March 26, 2020, has returned 29.5% over the past 12 weeks. The S&P 500 has advanced 5.9% 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 & Walmart Make Significant GainsCheck Point Software Technologies Ltd. CHKP, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 25.9% over the past 12 weeks. Walmart Inc. WMT has followed Check Point with 19.8% 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 3M and Starbucks Outperform Peers3M Company MMM, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 18.5% over the past 12 weeks. Another ECDP stock, Starbucks Corporation SBUX, has also climbed 10.2% 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 3M's dividend history here>>>Check Starbucks’ 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 Goldman Sachs Delivers Solid ReturnsThe Goldman Sachs Group, Inc. GS, from the Zacks Top 10 Stocks for 2025, has jumped 11.8% year to date compared to the S&P 500 Index’s +2.7% 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.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>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 The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Starbucks Corporation (SBUX): Free Stock Analysis Report Check Point Software Technologies Ltd. (CHKP): Free Stock Analysis Report Sea Limited Sponsored ADR (SE): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report Trip.com Group Limited Sponsored ADR (TCOM): Free Stock Analysis Report Arqit Quantum Inc. (ARQQ): Free Stock Analysis Report Morgan Stanley Direct Lending Fund (MSDL): Free Stock Analysis Report Viking Holdings Ltd. (VIK): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks