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Beat the Market the Zacks Way: Fastly, Microsoft, Hershey's in Focus

The three most widely followed indexes ended the week in the green. The S&P 500 advanced 3.5%, while the Nasdaq Composite and the Dow Jones Industrial Average gained 3.4% and 3.2%, respectively.

The market was assured by comments from various Fed officials and other government personnel, and the indexes seemed to rebound from the recent pandemonium in the banking sector. Regional banks did well, as did the tech stocks. PCE data suggested that inflation might have cooled off, and consumer expenditure has increased. There is a general feeling that the Fed is currently doing enough to avoid a hard landing of the economy.

For the first quarter, Nasdaq jumped 16.8% in its biggest quarterly percentage increase since the second quarter of 2020. The S&P 500 gained 7% and the Dow rose 0.4%. With the May meeting of the Fed a fair distance away, investors remain hopeful that the central bank would follow up on its indication of no further tightening of monetary policy.

Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.

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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:

Fastly and Rapid7 Surge Following Zacks Rank Upgrade

Shares of Fastly, Inc. FSLY have skyrocketed 72.6% since it was upgraded to a Zacks Rank #2 (Buy) on January 19.

Another stock, Rapid7, Inc. RPD, which was also upgraded to a Zacks Rank #2 on January 16,  has returned 35.4% 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 Fastly’s historical EPS and Sales here>>>

Check Rapid7’s historical EPS and Sales here>>>

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Recommendation Upgrade Drives Infineon and MongoDB Higher

Shares of Infineon Technologies AG IFNNY and MongoDB, Inc. MDB have advanced 18.2% and 18% since their Zacks Recommendation was upgraded to Outperform on January 17 and January 16, 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 Axon, Microsoft Soar High

Shares of Axon Enterprise, Inc. AXON, which belongs to the Zacks Focus List, have risen 35.7% over the past 12 weeks. The stock was added to the Focus List on June 3, 2020. Another Focus-List holding, Microsoft Corporation MSFT, which was added to the portfolio on February 1, 2016, has returned 29.7% 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 Intuit and Hershey’s Make Significant Gains

Intuit Inc. INTU, a component of our Earnings Certain Admiral Portfolio (ECAP), jumped 18.7% over the past 12 weeks. The Hershey Company HSY followed Intuit with 14% 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 Illinois Tool Works, C.H. Robinson Outperform Peers

Illinois Tool Works Inc. ITW, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 11.2% over the past 12 weeks. Another ECDP stock, C.H. Robinson Worldwide, Inc. CHRW, has climbed 10.4% 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 Illinois Tool Works’ dividend history here>>>

Check C.H. Robinson’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

Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report

Microsoft Corporation (MSFT) : Free Stock Analysis Report

Hershey Company (The) (HSY) : Free Stock Analysis Report

C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report

Intuit Inc. (INTU) : Free Stock Analysis Report

Infineon Technologies AG (IFNNY) : Free Stock Analysis Report

Rapid7, Inc. (RPD) : Free Stock Analysis Report

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

ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports

MongoDB, Inc. (MDB) : Free Stock Analysis Report

Fastly, Inc. (FSLY) : Free Stock Analysis Report

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Zacks Investment Research