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 1.7%, 1.7% and 2%, respectively.

While there were serious apprehensions about the turn of events in the Russia-Ukraine War, trade throughout the week remained relatively upbeat on data pointing toward robust economic activity in the United States. In fact, S&P Global said late in the week that its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 55.3 this month. The number is a 31-month high.

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 56.2% probability of a 25 basis point cut in the Fed’s December 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:

Gorilla Technology and American Healthcare Surge Following Zacks Rank Upgrade

Shares of Gorilla Technology Group Inc. GRRR have gained 18.9% (versus the S&P 500’s 4.5% increase) since it was upgraded to a Zacks Rank #2 (Buy) on September 26.

Another stock, American Healthcare REIT, Inc. AHR, which was upgraded to a Zacks Rank #1 (Strong Buy) on September 26, has returned 8.1% 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 7^th, 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 7^th, 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 Gorilla Technology’s historical EPS and Sales here>>>

Check American Healthcare’s historical EPS and Sales here>>>

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Zacks Recommendation Upgrades Vertex and Corcept Therapeutics

Shares of Vertex, Inc. VERX and Corcept Therapeutics Incorporated CORT have advanced 46.6% and 31% (versus the S&P 500’s 4.3% rise), respectively, since their Zacks Recommendation was upgraded to Outperform on September 30.

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, Axon Shoot Up

Shares of Palantir Technologies Inc. PLTR, which belongs to the Zacks Focus List, have gained 101.6% over the past 12 weeks. The stock was added to the Focus List on March 26, 2024. Another Focus-List holding, Axon Enterprise, Inc. AXON, which was added to the portfolio on June 3, 2020, has returned 70.9% over the past 12 weeks. The S&P 500 has advanced 7% 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 Oracle & Fair Isaac Make Significant Gains

Oracle Corporation ORCL, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 39.3% over the past 12 weeks. Fair Isaac Corporation FICO has followed Oracle with 35.6% 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 Fastenal and Home Depot Outperform Peers

Fastenal Company FAST, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 23.1% over the past 12 weeks. Another ECDP stock, The Home Depot, Inc. HD, has also climbed 15% 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 Fastenal's dividend history here>>>

Check Home Depot’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 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 30^th), 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 Eaton Delivers Solid Returns

Eaton Corporation plc ETN, from the Zacks Top 10 Stocks for 2024, has jumped 56.7% year to date compared to the S&P 500 Index’s +25.3% 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.

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Fastenal Company (FAST) : Free Stock Analysis Report

Eaton Corporation, PLC (ETN) : Free Stock Analysis Report

The Home Depot, Inc. (HD) : Free Stock Analysis Report

Oracle Corporation (ORCL) : Free Stock Analysis Report

Fair Isaac Corporation (FICO) : Free Stock Analysis Report

Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report

Axon Enterprise, Inc (AXON) : Free Stock Analysis Report

Vertex, Inc. (VERX) : Free Stock Analysis Report

Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report

Gorilla Technology Group Inc. (GRRR) : Free Stock Analysis Report

American Healthcare REIT, Inc. (AHR) : Free Stock Analysis Report

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