Last week, major U.S. indexes like the S&P 500 and the Nasdaq Composite remained volatile and closed the week with modest gains of 0.95% and 0.97%, respectively, as investors are trying to balance easing geopolitical tensions, Federal Reserve policy concerns and fresh economic data. However, the Dow Jones Industrial Average climbed above the 50,000 mark…
Last week, major U.S. indexes like the S&P 500 and the Nasdaq Composite remained volatile and closed the week with modest gains of 0.95% and 0.97%, respectively, as investors are trying to balance easing geopolitical tensions, Federal Reserve policy concerns and fresh economic data. However, the Dow Jones Industrial Average climbed above the 50,000 mark and hit a record high on Thursday, wrapping up the week with a 1.8% increase.
Driven by hopes of a U.S.-Iran diplomatic breakthrough, Brent crude fell from above $109 to nearly $102 by Thursday. This eased supply fears and initially lifted markets. But investor sentiment remained cautious after Federal Reserve minutes showed that policymakers were still concerned about inflation pressures from higher energy costs and global conflicts.
Economic data indicated a mixed picture of the economy. Initial jobless claims fell to 209,000, signaling continued strength in the labor market, while continuing claims edged up slightly to 1.78 million. Meanwhile, U.S. crude oil inventories fell sharply by 7.9 million barrels, reflecting strong demand. The Philadelphia Fed manufacturing index declined significantly in May, slipping to -0.4 from 26.7 in April, indicating a contraction in manufacturing conditions. Overall, the economy remained resilient, but inflation concerns and geopolitical uncertainty remain key concerns for investors.
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:
ORIX and Legacy Housing Following Zacks Rank Upgrade
Shares of ORIXCorporation IX have gained 30.3% (versus the S&P 500’s 14.2% increase) since it was upgraded to a Zacks Rank #2 (Buy) on March 25.
Another stock, Legacy Housing Corporation LEGH, which was upgraded to a Zacks Rank #2 on March 19, has returned 18% (versus the S&P 500’s 13% increase) 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.
A portfolio of Zacks #1 Rank (Strong Buy) stocks has outperformed the S&P 500 index by almost 8 percentage points this year. Through May 5, the Zacks #1 Rank portfolio returned +13.14%, which compares to +5.19% for the S&P 500 index and +7.76% for the equal-weight version of the index.
Since its inception in 1988, this portfolio of Zacks #1 Rank stocks has outperformed the market by 12.6 percentage points. The average annual return for this portfolio of Zacks #1 Rank stocks since inception in 1988 was +24% through May 5, which compared to +11.5% gain for the S&P 500 index and +11.3% gain for the equal-weight version of the index.
You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check ORIX’s historical EPS and Sales here>>>
Check Legacy Housing’s historical EPS and Sales here>>>
Zacks Investment Research
Image Source: Zacks Investment Research
Zacks Recommendation Upgrades ASM International and Indivior Pharmaceuticals
Shares of ASM International NV ASMIY and Indivior Pharmaceuticals, Inc. INDV have advanced 32.5% (versus the S&P 500’s 14.2% increase) and 20.6% (versus the S&P 500’s 12.6% increase) since their Zacks Recommendation was upgraded to Outperform on March 25 and March 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.
Zacks Focus List Stocks Quanta Services, Alphabet Shoot Up
Shares of Quanta Services, Inc. PWR, which belongs to the Zacks Focus List, have gained 28% over the past 12 weeks. The stock was added to the FocusList on December 23, 2021. Another Focus-List holding, Alphabet Inc. GOOGL, which was added to the portfolio on May 19, 2025, has returned 24.6% over the past 12 weeks. The S&P 500 has advanced 8.2% over this period.
The 50-stock Focus List portfolio returned +0.32% in 2026 (through March 31) vs. -4.3% for the S&P 500 index and +0.67% for the equal-weight version of the index.
The portfolio returned +22.1% in 2025 vs. +17.9% for the S&P 500 index and +11.4% 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%.
Through March 31, 2026, the portfolio’s rolling returns on a one-year, three-year, five-year, ten-year, and since 2004 have been +26.26% (vs. +17.80% for the S&P 500 index), +19.46% (vs. +18.23%), +11.68% (vs. +12.06%), +15.33% (vs. +14.16%) and +12.02% vs. (+13.36%), respectively.
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 Novo Nordisk and FactSet Research Make Significant Gains
Novo Nordisk A/S NVO, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 19.5% over the past 12 weeks. FactSet Research Systems Inc. FDS has followed Novo Nordisk with 8.3% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -7.14% in 2026 Q1 vs. -4.33% for the S&P 500 index.
For 2025, the portfolio returned -1.67% vs. +17.9% 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 Starbucks and Paychex Outperform Peers
Starbucks Corporation SBUX, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 5.1% over the past 12 weeks. Another ECDP stock, Paychex, Inc. PAYX, has also climbed 2.7% 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 Starbucks’ dividend history here>>>
Check Paychex‘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 -1.43% in 2026 Q1 vs. -4.33% for the S&P 500 index and +2.3% for the Dividend Aristocrats ETF (NOBL).
The portfolio returned -0.6% in 2025 vs. +6.8% 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 Monolithic Power Systems Delivers Solid Returns
Monolithic Power Systems MPWR, from the Zacks Top 10 Stocks for 2026, has jumped 69.8% since the list was released on January 5, 2026, compared with the S&P 500 index’s 9.2% increase during this period.
The Top 10 portfolio retuned +4.5% in 2026 (through March 31) vs. -4.3% for the S&P 500 index and +0.7% for the equal-weight version of the index.
The Top 10 portfolio returned +22.6% in 2025 vs. +17.9% for the S&P 500 index and +11.4% 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.
Through the end of March 2026, the Top 10 portfolio has produced a cumulative return of +2,607.4% since 2012 vs. +540.9% for the S&P 500 index and +406.6% for the equal-weight version of the index. The portfolio has produced an average annual return of +26% in the period 2012 through March 31, 2026 vs. +14.4% for the S&P 500 index and +13.4% 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
Paychex, Inc. (PAYX) : Free Stock Analysis Report
Quanta Services, Inc. (PWR) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
