Take the Zacks Approach to Beat the Markets: Nomura, Wells Fargo, Primo Brands in Focus

Market Overview - The three major U.S. indexes, Nasdaq Composite, Dow Jones Industrial Average, and S&P 500, experienced declines of 2.6%, 2.5%, and 1.9% respectively during a holiday-shortened trading week [1] - Concerns over persistent inflation, disappointing economic reports, and new tariff threats from President Trump contributed to investor anxiety [1] Federal Reserve and Economic Indicators - The Federal Reserve maintained key interest rates but expressed worries about rising inflation and the potential effects of Trump's fiscal, trade, and immigration policies [2] - The U.S. Consumer Sentiment Index dropped to a 15-month low of 64.7 in February, down from 71.7 in January [2] - The S&P Global's flash U.S. Composite PMI Output Index fell to a 17-month low of 50.4, down from 52.7 in January [2] Stock Performance and Recommendations - Nomura Holdings, Inc. (NMR) saw a share price increase of 12.3% since being upgraded to Zacks Rank 2 (Buy) on December 24 [3] - Corning Incorporated (GLW) returned 8.8% since its upgrade to Zacks Rank 2 on December 31 [4] - A hypothetical portfolio of Zacks Rank 1 (Strong Buy) stocks returned -3.48% in January 2025, compared to -0.60% for the S&P 500 index [4] Zacks Model Portfolio Performance - The Zacks Model Portfolio, consisting of Zacks Rank 1 stocks, has outperformed the S&P 500 index by nearly 13 percentage points since 1988, with an annualized average return of +23.9% [6] - The Zacks Focus List portfolio returned +3.13% in January 2025, outperforming the S&P 500 index's +2.79% [11] - The Focus List portfolio has produced an annualized return of +11.81% since 2004, compared to +10.48% for the S&P 500 index [12] Sector-Specific Stock Performance - AutoZone, Inc. (AZO) increased by 8.7% over the past 12 weeks, while Costco Wholesale Corporation (COST) rose by 7.4% [13] - The Coca-Cola Company (KO) returned 11.6% over the past 12 weeks, and Quest Diagnostics Incorporated (DGX) increased by 5.3% [16] - Primo Brands Corporation (PRMB) jumped 10.7% year-to-date, outperforming the S&P 500 index's 2.4% increase [19]