Take the Zacks Approach to Beat the Markets: Castle Biosciences, Hamilton Insurance & Monster Beverage in Focus

Last week, major U.S. indexes ended the Christmas-shortened week higher, with the S&P 500 and the Dow attaining new record highs. The S&P 500, the Dow Jones Industrial Average and the tech-heavy Nasdaq Composite gained 0.75%, 0.72% and 0.70%, respectively. A robust Q3 2025 Gross Domestic Product (GDP) growth rate, AI enthusiasm and expectations for accommodative monetary policy in 2026 have been the biggest contributors to renewed investor optimism.

Macroeconomic indicators were mixed and largely supported the view of a soft landing. In the third quarter of 2025 the U.S. GDP growth exceeded the street’s expectations at 4.3% against 3.8% in the second quarter, the fastest since the third quarter of 2023. Inflation, as measured by the Consumer Price Index and core personal consumption expenditures, remained in a manageable zone, hovering near the Federal Reserve’s 2% target. Industrial production edged higher, and labor market data stayed resilient. Meanwhile, the markets have priced in additional Fed cuts in 2026 from an already-lower policy range of 3.50-3.75%, following a cut in December. Despite a sharp deterioration of consumer confidence data, which fell 3.8 points to 89.1 in December due to deepening anxiety over jobs and income, investors are more focused on the outlook for corporate earnings and AI-driven growth.

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:

Castle Biosciences and F.N.B. Following Zacks Rank Upgrade

Shares of Castle Biosciences, Inc.  CSTL have gained 77.9% (versus the S&P 500’s 3.8% increase) since it was upgraded to a Zacks Rank #1 (Strong Buy)  on October 20.

Another stock, F.N.B. Corporation FNB, which was upgraded to a Zacks Rank #2 (Buy) on October 21, has returned 13.4% (versus the S&P 500’s 2.8% 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 Castle Biosciences' historical EPS and Sales here>>>

Check F.N.B.’s historical EPS and Sales here>>>

Zacks Recommendation Upgrades Hamilton Insurance & Kinross Gold

Shares of Hamilton Insurance Group, Ltd. HG and Kinross Gold Corporation KGC have advanced 19.8% and 7.7% (versus the S&P 500’s 4.4% increase), respectively, since their Zacks Recommendation was upgraded to Outperform on October 17.

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 Huntington Ingalls, Arcosa Shoot Up

Shares of Huntington Ingalls Industries, Inc. HII, which belongs to the Zacks Focus List, have gained 25.6% over the past 12 weeks. The stock was added to the Focus List on May 9, 2016. Another Focus-List holding, Arcosa, Inc. ACA, which was added to the portfolio on January 6, 2020, has returned 19.5% over the past 12 weeks. The S&P 500 has advanced by 4% 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 Monster Beverage & Cencora Make Significant Gains

Monster Beverage Corporation MNST, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 15.5% over the past 12 weeks. Cencora, Inc. COR has followed Monster Beverage with 10.7% 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 3M Outperform Peers

Johnson & Johnson JNJ, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 14.3% over the past 12 weeks. Another ECDP stock, 3M Company MMM, has increased 5.2% 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 3M’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^th), 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 MasTec Delivers Solid Returns

MasTec, Inc. MTZ, from the Zacks Top 10 Stocks for 2025, has jumped 64.8% year to date compared with the S&P 500 index’s 17.8% 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.

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).

Zacks Investment Research