Market Overview - The three major U.S. indexes, Dow Jones Industrial Average, Nasdaq Composite, and S&P 500, experienced losses of 1.32%, 0.94%, and 0.48% respectively last week due to escalating geopolitical tensions in the Middle East, particularly between Israel and Iran [1] - Trade policy uncertainty and the impact of tariffs are significant factors affecting the economic outlook, although lower-than-expected inflation and a cooling labor market provided some optimism [1] Inflation and Labor Market - The Consumer Price Index (CPI) and Producer Price Index (PPI) both increased by 0.1% in May, with year-on-year CPI rising by 2.4% and PPI advancing by 2.6% [2] - The U.S. labor market added 139,000 jobs in May, a decrease from 193,000 a year ago, while the unemployment rate remained steady at 248,000, with wage growth at 3.9% year-over-year [2] Stock Performance - Mirion Technologies, Inc. (MIR) shares increased by 42.8% since being upgraded to Zacks Rank 2 (Buy) on April 16, outperforming the S&P 500's 11% increase [3] - Oatly Group AB (OTLY) shares returned 37% since its upgrade to Zacks Rank 2 on April 14 [4] - Zacks Rank 1 (Strong Buy) stocks returned +6.51% in May 2025, compared to +4.47% for the S&P 500 [4] Hypothetical Portfolio Performance - A hypothetical portfolio returned -2.59% in 2025 (through June 2), underperforming the S&P 500's -1.12% [5] - The portfolio had a strong performance in 2024 with a return of +22.4%, compared to +28% for the S&P 500 [5] Zacks Model Portfolio - The Zacks Model Portfolio, consisting of Zacks Rank 1 stocks, has outperformed the S&P index by over 12 percentage points since 1988, with an annualized average return of +23.5% [6] - Avino Silver & Gold Mines Ltd. (ASM) shares advanced 81.6% since its upgrade on April 22, while Comfort Systems USA, Inc. (FIX) shares increased by 38.5% since its upgrade on April 24 [7] Focus List and Other Portfolios - Quanta Services, Inc. (PWR) gained 37.4% over the past 12 weeks, while Casey's General Stores, Inc. (CASY) returned 27.9% during the same period [10] - The Zacks Focus List portfolio returned +6.33% in April 2025, outperforming the S&P 500 index [11] - The Earnings Certain Admiral Portfolio (ECAP) returned +3.20% in Q1 2025, compared to the S&P 500 index's -4.30% decline [16] Dividend Portfolio Performance - Fastenal Company (FAST) returned 12.1% over the past 12 weeks, while Quest Diagnostics Incorporated (DGX) increased by 5.9% [19] - The Earnings Certain Dividend Portfolio (ECDP) returned +5.74% in Q1 2025, outperforming the S&P 500 index [20]
Take the Zacks Approach to Beat the Markets: Mirion Technologies, Avino Silver & Gold Mines, Quanta Services in Focus