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Last week, the U.S. economy experienced intense volatility due to mixed signals. Major indexes, such as the S&P 500 and the Dow Jones Industrial Average, gained 0.28% and 1.60%, respectively, whereas the tech-heavy Nasdaq Composite fell by 0.62%. All eyes were on the Jackson Hole symposium, in which the Federal Reserve Chair Jerome Powell indicated that the Fed may consider an interest rate cut as early as September.
A slowing labor market remains a primary concern for the Fed as it could add rising downside risks to employment. Recent labor market data showed a significant downward revision of job growth in May and June, with an insufficient gain of just 73,000 jobs in July. While Q2 GDP numbers were strong, recent labor market and manufacturing data suggest a possible economic slowdown. The Fed is facing a tough choice as it must decide whether to support a weakening job market or continue fighting inflation, which is being impacted by the recent tariff hike by the federal government.
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 forecasts to prepare better for your next action. 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:
Shares of WisdomTree, Inc. WT have gained 28% (versus the S&P 500’s 8.7% increase) since it was upgraded to a Zacks Rank #2 (Buy) on June 23.
Another stock, Hafnia Limited HAFN, which was upgraded to a Zacks Rank #2 on June 25, has returned 14.1% (versus the S&P 500’s 6.4% increase) since then.
A hypothetical portfolio of Zacks Rank # 1 (Strong Buy) stocks returned +1.47% in 2025 (through August 4) vs. +5.60% for the S&P 500 index and +6.77% for the equal-weight version of the index.
This portfolio returned +22.4% 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 +20.65% in 2023 vs. +24.83% for the S&P 500 index and +15% for the equal-weight S&P 500 index.
The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by more than 12 percentage points since 1988 (through August 4, 2025, the Zacks # 1 Rank stocks generated an annualized average return of +23.6% vs. +11.3% for the S&P 500 index).
You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check WisdomTree’s historical EPS and Sales here>>>
Check Hafnia’s historical EPS and Sales here>>>
Shares of Primoris Services Corporation PRIM and SkyWest, Inc. SKYW have advanced 35.1% and 10.5% (versus the S&P 500’s 3.2% increase), respectively, since their Zacks Recommendation was upgraded to Outperform on July 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>>>
Shares of Shopify Inc. SHOP, which belongs to the Zacks Focus List, have gained 40% over the past 12 weeks. The stock was added to the Focus List on September 6, 2022. Another Focus-List holding, Caterpillar Inc CAT, which was added to the portfolio on April 18, 2017, has returned 26.9% over the past 12 weeks. The S&P 500 has advanced by 11.4% over this period.
The 50-stock Focus List portfolio returned 10.91% in 2025 (through July 31, 2025) vs. +8.59% for the S&P 500 index and +5.84% for the equal-weight version of the index.
The Zacks 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 portfolio had 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 returned -15.2% vs. the S&P 500 index’s -17.96%.
The portfolio leads the broader market over the preceding one, three, five and ‘since 2004’ periods. These annualized return comparisons are: +17.71% for the Focus List vs. +16.35% for the index over the one-year period, +19.21% vs. +17.101% over the 3-year period, +16.98% vs. +15.88% over the 5-year period, and +11.9% vs. +10.51% since 2004.
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 >>
Mettler-Toledo International Inc. MTD, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 18.6% over the past 12 weeks. PepsiCo, Inc. PEP has followed Mettler-Toledo International with 15.7% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned +0.20% in the second quarter of 2025 vs. the S&P 500 index’s +10.94% gain (SPY ETF). In the year-to-date period through June 30, the portfolio returned +3.93% vs. +6.20% gain for the S&P 500 index.
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.
Johnson & Johnson JNJ, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 17.2% over the past 12 weeks. Another ECDP stock, The Hershey Company HSY, has increased 16.8% 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 Johnson & Johnson's dividend history here>>>
Check Hershey’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 to significantly mitigate risk.
The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -3.17% in 2025 Q2 vs. the S&P 500 index’s +10.94% gain and the Dividend Aristocrats ETF’s (NOBL) -0.09% return. Year-to-date (through June 30), the portfolio returned +2.38% vs. +2.18% gain for the Dividend Aristocrat ETF.
For full-year 2024, the portfolio has 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.
Credo Technology Group Holding Ltd CRDO, from the Zacks Top 10 Stocks for 2025, has jumped 69.7% year to date compared with the S&P 500 index’s 10.2% increase.
The Top 10 portfolio returned +16.9% this year (through the end of July 2025) vs. +8.6% for the S&P 500 index and +5.8% for the equal-weight version of the index.
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 portfolio had 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 +2,220.4% through the end of July 2025 vs. +517.8% for the S&P 500 index and +378% for the equal-weight version of the index. The portfolio has produced an average return of +26.1% in the period 2012 through July 31, 2025, vs. +14.4% for the S&P 500 index and +12.2% for the equal-weight version of the index.
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
This article originally published on Zacks Investment Research (zacks.com).
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