Take the Zacks Approach to Beat the Markets: Ubiquiti, Flotek Industries & Goldman Sachs in Focus

Market Performance - The three major U.S. indexes saw significant increases last week, with the Nasdaq Composite rising by 3.27%, the Dow Jones Industrial Average by 2.91%, and the S&P 500 by 2.45% [1] - Investor optimism was driven by a ceasefire agreement in the Middle East, particularly regarding the Israel-Iran situation, and expectations of an interest rate cut by the Federal Reserve [1] Economic Indicators - The Department of Commerce reported a 0.1% increase in personal consumption expenditure (PCE) in May, with a year-over-year rise to 2.3% from 2.2% [2] - The U.S. economy contracted by 0.5% in Q1 2025, a deeper contraction than the previously estimated 0.2%, marking the first negative GDP reading since Q1 2022 [3] - Consumer confidence fell to 93 in June, down from 98 in May, while personal income, spending, and savings also declined [3] Stock Performance - Banco Bradesco S.A. shares increased by 30% since being upgraded to a Zacks Rank 2 (Buy) on April 24, outperforming the S&P 500's 14.8% increase [4] - Ubiquiti Inc. shares rose by 28.7% since its upgrade to a Zacks Rank 2 on April 25, also outperforming the S&P 500's 12.4% increase [5] - Zacks Rank 1 (Strong Buy) stocks returned +6.51% in May 2025, compared to +4.47% for the S&P 500 [6] Portfolio Performance - A hypothetical portfolio of Zacks Rank 1 stocks has returned -2.59% in 2025 (through June 2), underperforming the S&P 500's -1.12% [6] - The Zacks Focus List portfolio returned +2.90% year-to-date (through May 31, 2025), outperforming the S&P 500's +1.07% [15] - The Zacks Earnings Certain Admiral Portfolio (ECAP) returned +3.20% in Q1 2025, compared to the S&P 500's -4.30% decline [18] Notable Stock Upgrades - Flotek Industries, Inc. shares surged by 101% since being upgraded to Outperform by Zacks on May 6 [9] - Goldman Sachs has returned 20.6% year-to-date as part of Zacks' Top 10 Stocks for 2025 list [24] - Fastenal Company returned 10.2% over the past 12 weeks, while 3M Company increased by 5% during the same period [21]