Market Overview - Major US indexes are experiencing a significant rally in November, with the S&P 500 up nearly 5%, the Dow up over 6%, and the Nasdaq up slightly more than 5% from late-October lows [1] - Sector rotation is evident as investors shift towards industrials, financials, and consumer discretionary stocks, indicating a broadening market breadth that supports the sustainability of the new bull market [2] Earnings and Economic Indicators - Corporate earnings have exceeded expectations, contributing to the market rally, with total earnings for S&P 500 companies up 8.1% year-over-year on 5.5% higher revenues [19] - The labor market remains resilient, with recent jobless claims reports confirming this trend, which is viewed as a significant factor in the current market environment [4] Stock Selection and Performance - The equal-weighted S&P 500 ETF has outperformed its market-weighted counterpart, suggesting that a majority of stocks, not just large-cap companies, are driving the market's positive momentum [3] - Vertiv Holdings (VRT) is highlighted as a leading stock within the top 24% of the Zacks Computers – IT Services industry, which has significantly outperformed the market over the last three months [9] - VRT has shown a 10.1% average earnings surprise over the past four quarters, with analysts increasing EPS estimates for the next year by 8.16%, projecting a fiscal 2025 Zacks Consensus Estimate of $3.58/share, a 33.2% improvement from the current year [14] Investment Strategy - The Zacks Industry Rank system is utilized to identify top-performing stocks, with a focus on those with positive earnings estimate revisions, which have historically outperformed the S&P 500 [7][11] - A top-down investment approach is recommended, starting with leading industry groups and narrowing down to stocks with the highest Zacks Rank, such as Vertiv Holdings, which is experiencing strong buying pressure and has made a series of 52-week highs [16]
Gobble, Gobble: A Winning Stock System to Be Thankful For