Beat the market the Zacks way: McDonald’s, Deere, Autozone in a nutshell


Wall Street ended a losing week on fears the Fed would continue to hike rates. The Dow Jones Industrial Average lost 1.4% during the week, ending a four-week winning streak. The technology-heavy S&P 500 and Nasdaq Composite shed 3.4% and 5.7%, respectively, snapping a two-week winning streak.

Treasury yields continued to rise amid fears of an economic slowdown, with the benchmark US 10-year yield marking its 13e weekly gain over the past 14 weeks. Investors remained concerned about the economic data, which is still not convincing enough for the Fed to consider slowing its rate hikes.

Additionally, Fed Chairman Jerome Powell on Wednesday urged the market to stop obsessing over the speed at which rates were rising and instead focus on the levels they were reaching. Interpreting this as a pullback from recent dovish signals from the Fed, markets fell.

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

As usual, Zacks Research has guided investors over the past three months with its proven methodologies. Given the uncertainty in the market, you might want to check out our exploits to better prepare for your next action.

Here are some of our main achievements:

Titan Machinery and Koppers Holdings Rise Following Zacks Rank Upgrade

Shares of Titan Machinery Inc. TITN has gained 9.4% since being upgraded to Zacks rank #1 (Strong Buy) on August 16th.

another action, Koppers Holdings Inc. KOP, was upgraded to Zacks rank #2 (buy) on August 8 and has returned 16.6% since then.

Zacks Rank, our short-term rating system, is centered around earnings estimate revisions. Empirical research shows a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

This stock rating system, which uses four factors tied to earnings estimates to categorize stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive track record audited in external, with Zacks Rank #1 stocks generating an average annual return of +24.8% since 1988. You can see the full list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>

Check Titan Machinery’s EPS history and sales here>>>

View Koppers Holdings Historical EPS and Sales Here>>>

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Zacks Recommendation Upgrade Drives China Automotive and Old National Higher

Shares of China Automotive Systems, Inc. CAAS and Former National Bank ONB has gained 33.8% and 7.3% since its Zacks recommendation was upgraded to Outperform on Aug. 16 and 17, respectively.

While the Zacks Ranking is our short-term rating system that is most effective over a 1-3 month holding horizon, the Zacks Recommendation aims to predict performance over the next 6-12 months. However, like the Zacks Ranking, the Zacks Recommendation is based on earnings estimate revision trends.

The Zacks recommendation classifies stocks into three groups: outperforming, neutral and underperforming. While these recommendations are determined quantitatively, our analysts have the option to override them for the 1100+ stocks they track based on their best 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 Rollins Model Wallet, Deere Soar High

Shares of Rollins, Inc. ROL, which belongs to the Zacks Focus List, has gained 14.4% over the past 12 weeks. The stock was added to the Focus List on January 7, 2019. Another Focus-List holding, Deere & Company DE, which was added to the portfolio on July 25, 2017, has returned 9.2% over the past three months.

The Zacks Focus List is a model portfolio of 50 handpicked stocks that have the right fundamental ingredients to outperform the market over the next 12 months. These 50 stocks are selected from a long list of stocks with the highest Zacks rank.

Since its inception on February 1, 1996, the Focus List portfolio has generated an annualized return of +12.9%.

Unlock all of our powerful research, tools and analytics, including Focus List, Zacks #1 Rank List, Stock Research Reports, Zacks Earnings ESP Filter, Premium Filter and more, as part of Zacks Premium. Get full access now >>

Zacks ECAP Stocks AutoZone and Monster Beverage Deliver Strong Returns

AutoZone, Inc. AZO, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 10.5% over the past 12 weeks. Monster Beverage Corporation MNST trailed AutoZone with returns of 9.7%.

ECAP is a model portfolio of 30 concentrated, ultra-defensive and long-term Buy and Hold stocks.

With little or no turnover and an annual rebalancing frequency, ECAP seeks to minimize capital losses by holding stocks of companies whose earnings streams have a proven track record of over 20 years of surviving periods. recession with minimal impact on overall earnings growth relative to the broader S&P 500. .

ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution for accessing Zacks’ award-winning stock, mutual fund, and ETF research. Click here to schedule a demo.

Zacks ECDP Stocks McDonald’s and Starbucks Outperform Peers

McDonald’s Corporation MCD, part of our Earnings Certain Dividend (ECDP) portfolio, has returned 5.9% over the past 12 weeks. Another ECDP stock, Starbucks Corporation SBUX, climbed 5.3% over the same period. Of course, investors’ inclination towards quality dividend-paying stocks to secure an income stream in an environment of heightened market volatility contributed to this performance.

View McDonalds Dividend History Here>>>

View Starbucks Dividend History Here>>>

With an extremely low beta and a history of minimal earnings variability over the past 20+ years, this 25-stock portfolio helps to significantly mitigate risk. ECDP has consistently outperformed the S&P 500 Dividend Aristocrats ETF NOBL.

The infrastructure stock boom will sweep America

A massive push to rebuild America’s crumbling infrastructure will soon be underway. It is bipartisan, urgent and inevitable. Billions will be spent. Fortunes will be made.

The only question is “Are you going to get into good stocks early when their growth potential is greatest?”

Zacks released a special report to help you do just that, and today it’s free. Discover 5 special companies looking to make the most of building and repairing roads, bridges and buildings, as well as transporting goods and transforming energy on a scale almost unimaginable.

Download FREE: How to Leverage Trillions of Dollars in Infrastructure Spending >>

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

Starbucks Corporation (SBUX): Free Inventory Analysis Report

McDonald’s Corporation (MCD): Free Inventory Analysis Report

Deere & Company (DE): Free Inventory Analysis Report

AutoZone, Inc. (AZO): Free Stock Analysis Report

Titan Machinery Inc. (TITN): Free Stock Analysis Report

Koppers Holdings Inc. (KOP): Free Stock Analysis Report

Monster Beverage Corporation (MNST): Free Stock Analysis Report

Rollins, Inc. (ROL): Free Stock Analysis Report

Old National Bancorp (ONB): Free Stock Analysis Report

China Automotive Systems, Inc. (CAAS): Free Inventory Analysis Report

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

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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