Take the Zacks Approach to Beat the Markets: Liquidia, Western Digital & Johnson & Johnson in Focus

The U.S. stock markets ended the week mostly lower, with the tech-heavy Nasdaq Composite and the S&P 500 slipping by 1.49% and 0.28%, respectively, due to a sharp selloff in tech stocks. However, the Dow Jones Industrial Average held up better, gaining 1.51% as investors rotated toward value and traditional sectors ahead of the start of 2026.

Meeting market expectations, the Federal Reserve delivered a quarter-percentage-point cut to its key overnight borrowing rate, which is now in the range of 3.5% to 3.75%. Encouraged by signs of gradually cooling inflation, the Fed eased its monetary policy to support the labor market and stimulate economic growth. For the week ending Dec. 6, the number of Americans filing new applications for unemployment benefits surged to a 4.5-year high, reaching 236,000, indicating a sharp deterioration in the jobs market. The labor market easing is primarily due to lower supply and demand for workers caused by reduced immigration and higher import tariffs. Investors are sensitive to economic data, bond yields, and central bank guidance, and expect monetary policy to gradually become more supportive.

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 better prepare for your next action.

Here are some of our key achievements:

Liquidia and Bank of N.T. Butterfield & Son Following Zacks Rank Upgrade

Shares of Liquidia Corporation  LQDA have gained 43.9% (versus the S&P 500’s 4.4% increase) since it was upgraded to a Zacks Rank #2 (Buy) on October 13.

Another stock, The Bank of N.T. Butterfield & Son Limited NTB, which was upgraded to a Zacks Rank #1 (Strong Buy) on October 7, has returned 22.7% (versus the S&P 500’s 1.5% increase) since then.

A hypothetical portfolio of Zacks Rank # 1 stocks returned +14.3% in 2025 (through December 1) vs. +14.9% for the S&P 500 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 December 1, 2025, the Zacks #1 Rank stocks generated an annualized average return of +23.9% vs. +11.5% for the S&P 500 index).

You can see the complete list of today’s Zacks Rank #1 stocks here >>>

Check Liquidia's historical EPS and Sales here>>>

Check Bank of N.T. Butterfield & Son’s historical EPS and Sales here>>>

Zacks Recommendation Upgrades Western Digital & Commercial Metals

Shares of Western Digital Corporation WDC and Commercial Metals CMC have advanced 52.8% (versus the S&P 500’s 4.4% increase) and 19.4% (versus the S&P 500’s 2.8% increase), respectively, since their Zacks Recommendation was upgraded to Outperform on October 13 and October 14, 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 HCA Healthcare, Huntington Ingalls Shoot Up

Shares of HCA Healthcare, Inc. HCA, which belongs to the Zacks Focus List, have gained 20.2% over the past 12 weeks. The stock was added to the Focus List on January 7, 2019. Another Focus-List holding, Huntington Ingalls Industries, Inc. HII, which was added to the portfolio on May 9, 2016, has returned 19.7% over the past 12 weeks. The S&P 500 has advanced by 3.2% over this period.

A hypothetical portfolio of Zacks Rank # 1 (Strong Buy) stocks returned +14.3% in 2025 (through December 1) vs. +14.9% for the S&P 500 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 December 1, 2025, the Zacks # 1 Rank stocks generated an annualized average return of +23.9% vs. +11.5% for the S&P 500 index).

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 Cencora & Fair Isaac Make Significant Gains

Cencora, Inc. COR, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 18.7% over the past 12 weeks. Fair Isaac Corporation FICO has followed Cencora with 18.6% returns.

The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -1.30% in the third quarter of 2025 vs. the S&P 500 index’s +8.1% gain (SPY ETF). In the year-to-date period through September 30, the portfolio returned +2.72% vs. +14.84% 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.

Zacks ECDP Stocks Johnson & Johnson and PepsiCo Outperform Peers

Johnson & Johnson JNJ, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 19.3% over the past 12 weeks. Another ECDP stock, PepsiCo, Inc. PEP, has increased 7.1% 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 PepsiCo’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 -0.01% in 2025 Q3 vs. the S&P 500 index’s +8.1% gain and the Dividend Aristocrats ETF’s (NOBL) +2.90% return. Year-to-date (through September 30), the portfolio returned +1.58% vs. +5.15% gain for the Dividend Aristocrat ETF.

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 Stock Coherent Delivers Solid Returns

Coherent Corp. COHR, from the Zacks Top 10 Stocks for 2025, has jumped 88.3% year to date compared with the S&P 500 index’s 16.4% increase.

The Top 10 portfolio returned +25.4% this year (through the end of November 2025) vs. +17.8% for the S&P 500 index and +10.9% 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 +2,530.8% through the end of November 2025 vs. +562% for the S&P 500 index and +401% for the equal-weight version of the index. The portfolio has produced an average return of +26.1% in the period 2012 through November 30, 2025, vs. +13.2% for the S&P 500 index and +10.5% for the equal-weight version of the index.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research