Take the Zacks Approach to Beat the Market: Carnival, Walmart, Shopify in Focus

The three most widely followed benchmark indexes closed the last week with gains. The S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average advanced 1.1%, 1.1% and 1.4%, respectively.Stocks in recent sessions seem to have ignored President-elect Trump's call for big tariffs on America’s largest trading partners. Equities have been boosted by the notion that his policies, like tax cuts and deregulation, could boost further growth despite the potential to stoke inflation.  However, market participants continue to weigh in on Fed officials' hawkish comments about rate cuts slowing down going forward. Despite Powell’s mid-November warning, the CME FedWatch Tool grants a 67.1% probability of a 25 basis point cut in the Fed’s December meeting.   All eyes will be on the jobs reports slated to release this week. The jobs numbers should provide a clearer picture of the underlying rate expectations from the Fed.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:Coastal Financial and Carnival Surge Following Zacks Rank UpgradeShares of Coastal Financial Corporation CCB have gained 46.8% (versus the S&P 500’s 5.9% increase) since it was upgraded to a Zacks Rank #2 (Buy) on October 2.Another stock, Carnival Corporation & plc CCL, which was upgraded to a Zacks Rank #1 (Strong Buy) on October 2, has returned 41.1% 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 +14% in the year-to-date period through October 7th, 2024, vs. +22.2% for the S&P 500 index and +12.4% 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 October 7th, 2024, the Zacks # 1 Rank stocks generated an annualized average return of +24.1% since 1988 vs. +11.2% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>>Check Coastal Financial’s historical EPS and Sales here>>>Check Carnival’s historical EPS and Sales here>>>Image Source: Zacks Investment ResearchZacks Recommendation Upgrades Shopify and BellRing BrandsShares of Shopify Inc. SHOP and BellRing Brands, Inc. BRBR have advanced 40.2% and 26.3% (versus the S&P 500’s 5.1% rise), respectively, since their Zacks Recommendation was upgraded to Outperform on October 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 Sea Limited, Block Shoot UpShares of Sea Limited SE, which belongs to the Zacks Focus List, have gained 46.8% over the past 12 weeks. The stock was added to the Focus List on March 26, 2020. Another Focus-List holding, Block, Inc. SQ, which was added to the portfolio on March 28, 2017, has returned 33.3% over the past 12 weeks. The S&P 500 has advanced 7.8% over this period. The Focus List portfolio returned +16.18% in 2024 (through October 31st) vs. +20.99% for the S&P 500 index and +13.29% for the equal-weight S&P 500 index.The 50-stock Zacks Focus List model portfolio returned +31.44% 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 October 31st, 2024). This compares to a +10.29% annualized return for the S&P 500 index and +10.12% 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 Fiserv & Walmart Make Significant GainsFiserv, Inc. FI, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 27.8% over the past 12 weeks. Walmart Inc. WMT has followed Fiserv with 21% returns.The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned +1.97% for September 2024 vs. the S&P 500 index’s +2.14% return (IVV ETF).For the year-to-date period (through the end of September 2024), the portfolio returned +20.62% vs. +22.1% for the S&P 500 index.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 Automatic Data Processing and Illinois Tool Works Outperform Peers  Automatic Data Processing, Inc. ADP, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 12.3% over the past 12 weeks. Another ECDP stock, Illinois Tool Works Inc. ITW, has also climbed 10.8% 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 Automatic Data Processing's dividend history here>>>Check Illinois Tool Works’ 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 +1.91% in September 2024 vs. the S&P 500 index’s +2.14% gain and the Dividend Aristocrats ETF’s (NOBL) +2.37%.For the year-to-date period (through September 30th), the portfolio returned +15.85% vs. +22.1% for the S&P 500 index and +13.78% 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 Stocks Goldman Sachs Delivers Solid ReturnsGoldman Sachs Group, Inc. GS, from the Zacks Top 10 Stocks for 2024, has jumped 57.8% year to date compared to the S&P 500 Index’s +26.7% increase.The Top 10 portfolio returned +43.45% this year through October 31st, vs. +20.99% for the S&P 500 index and +13.29% 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 +1,746.65% through October 31st, 2024, vs. +450.50% for the S&P 500 index. The portfolio has produced an average return of +25.5% in the period 2012 through October 31st, 2024, vs. +14.22% for the S&P 500 index and +12.49% for the equal-weight version of the index.Must-See: Solar Stocks Poised to SkyrocketThe solar industry stands to bounce back as tech companies and the economy transition away from fossil fuels to power the AI boom.Trillions of dollars will be invested in clean energy over the coming years – and analysts predict solar will account for 80% of the renewable energy expansion. This creates an outsized opportunity to profit in the near-term and for years to come. But you have to pick the right stocks to get into.Discover Zacks’ hottest solar stock recommendation FREE.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 Illinois Tool Works Inc. (ITW): Free Stock Analysis Report Carnival Corporation (CCL): Free Stock Analysis Report Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report Sea Limited Sponsored ADR (SE): Free Stock Analysis Report Fiserv, Inc. (FI): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report Block, Inc. (SQ): Free Stock Analysis Report Coastal Financial Corporation (CCB): Free Stock Analysis Report BellRing Brands Inc. (BRBR): 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