Take the Zacks Approach to Beat the Markets: Urban Outfitters, Genesco, Costco in Focus

Two out of the three major U.S. indexes — the Nasdaq Composite and the S&P 500 have gained 0.68% and 0.52%, respectively, whereas the Dow Jones Industrial Average fell by 0.27% last week. Investors are concerned about President Donald Trump’s fiscal policies, which could slow down the Fed’s rate cut plans.According to the Institute of Supply Management reports, the manufacturing purchasing managers’ index (PMI) for the month of January came in at 50.9% compared with 49.2% in December. Any reading above 50% indicates expansion in manufacturing activities. After two months of robust gains, the U.S. job market growth slowed more than expected in January. The nonfarm payrolls increased by 143,000 jobs, below the streets’ estimate of 169,000. The unemployment rate was recorded at 4.0%, the lowest since May. Wages jumped more than expected, as average hourly earnings increased by 0.5% against analysts’ expectations of 0.3%. The Fed is closely monitoring the labor market as a lack of strength could hinder economic expansion and lead to interest rate cuts earlier.On, the international front, the trade war between the United States and China, the world’s top two economies, is also a growing concern. In response to Trump’s stringent international trade policies, China imposed targeted tariffs on U.S. imports and put several companies on notice for probable sanctions.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:Versus Systems and Urban Outfitters Following Zacks Rank Upgrade Shares of Versus Systems Inc. VS have gained 16.6% (versus the S&P 500’s 0.6% decrease) since it was upgraded to a Zacks Rank #2 (Buy) on December 13.Another stock, Urban Outfitters, Inc. URBN, which was upgraded to a Zacks Rank #1 (Strong Buy) on December 4, has returned 11.6% (versus the S&P 500’s 0.52% decrease) since then.A hypothetical portfolio of Zacks Rank # 1 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 Versus Systems’ historical EPS and Sales here>>>Check Urban Outfitters’ historical EPS and Sales here>>>Image Source: Zacks Investment ResearchZacks Recommendation Upgrades Genesco and Trip.comShares of Genesco Inc. GCO and Trip.com Group Limited TCOM have advanced 9.6% (versus the S&P 500’s 0.5% decrease) and 3.5% (versus the S&P 500’s 1.1% fall) since their Zacks Recommendation was upgraded to December 4 and November 5, 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 Palantir Technologies, Deere Shoot UpShares of Palantir Technologies Inc. PLTR, which belongs to the Zacks Focus List, have gained 89.8% over the past 12 weeks. The stock was added to the Focus List on March 26, 2024. Another Focus-List holding, Deere & Company DE, which was added to the portfolio on July 25, 2017, has returned 18.2% over the past 12 weeks. The S&P 500 has advanced 0.4% 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 Costco Wholesale & Mettler-Toledo International Make Significant GainsCostco Wholesale Corporation COST, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 10.6% over the past 12 weeks. Mettler-Toledo International Inc. MTD has followed Costco Wholesale with 6.1% returns.The Zacks ECAP, which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned +5.62% in November 2024 vs. the S&P 500 index’s +5.87% return (IVV 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 Intercontinental Exchange and Quest Diagnostics Outperform PeersIntercontinental Exchange, Inc. ICE, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 6.7% over the past 12 weeks. Another ECDP stock, Quest Diagnostics Incorporated DGX, has increased 3.9% 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 Intercontinental Exchange's dividend history here>>>Check Quest Diagnostics’ 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 Stocks Stride Delivers Solid ReturnsStride, Inc. LRN, from the Zacks Top 10 Stocks for 2025, has jumped 36.9% year to date, compared with the S&P 500 index’s 2.6% 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.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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 Intercontinental Exchange Inc. (ICE): Free Stock Analysis Report Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Genesco Inc. (GCO): Free Stock Analysis Report Mettler-Toledo International, Inc. (MTD): Free Stock Analysis Report Stride, Inc. (LRN): Free Stock Analysis Report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Trip.com Group Limited Sponsored ADR (TCOM): Free Stock Analysis Report Palantir Technologies Inc. (PLTR): Free Stock Analysis Report Versus Systems Inc. (VS): 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