Market Overview - The U.S. market experienced a strong rebound during the holiday-shortened trading week, with major indexes like the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average gaining 2.16%, 2.15%, and 2.73% respectively [1] - The rally was supported by increasing investor confidence in a potential interest rate cut by the Federal Reserve in December, fueled by recent economic data and dovish comments from Fed officials [1] Retail Sales and Economic Indicators - Retail sales rose by 0.2% in September, following a 0.6% gain in August, with a year-over-year increase of 4.3% [2] - The Producer Price Index increased by 0.3% in September, maintaining a year-over-year growth of 2.7%, which is above the Fed's 2% target [2] - The consumer confidence index fell to a seven-month low of 88.7 in November, below the consensus estimate of 93.5, indicating concerns about affordability amid a sluggish labor market and high unemployment rate [2] Zacks Recommendations and Performance - MBX Biosciences, Inc. saw a 97.1% increase since its upgrade to Zacks Rank 2 (Buy) on October 1, significantly outperforming the S&P 500's 2.6% increase [3][6] - AXIS Capital Holdings Limited returned 8.5% since its upgrade to Zacks Rank 2 on October 2, also outperforming the S&P 500 [4] - A hypothetical portfolio of Zacks Rank 1 (Strong Buy) stocks returned +20.65% in 2023, compared to +24.83% for the S&P 500 index [5] Focus List and Model Portfolios - The Zacks Focus List portfolio returned +18.3% in 2025 (through September 30) compared to +14.8% for the S&P 500 index [11] - CACI International Inc. gained 28.6% over the past 12 weeks, while Quanta Services, Inc. returned 23% in the same period, both outperforming the S&P 500's 6% increase [10] - The Zacks Earnings Certain Admiral Portfolio (ECAP) returned -1.30% in Q3 2025, underperforming the S&P 500 index's +8.1% gain [16] Dividend Portfolio Performance - Johnson & Johnson returned 16.8% over the past 12 weeks, while UnitedHealth Group Incorporated increased by 6.4%, benefiting from investor interest in quality dividend stocks amid market volatility [19] - The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -0.01% in Q3 2025, compared to the S&P 500 index's +8.1% gain [21] Top 10 Stocks Performance - Coherent Corp. from the Zacks Top 10 Stocks for 2025 jumped 73.4% year-to-date, outperforming the S&P 500 index's 16.7% increase [23] - The Top 10 portfolio returned +62.98% in 2024, significantly outperforming the S&P 500 index's +25.04% [24] - Since 2012, the Top 10 portfolio has produced a cumulative return of +2,553.1%, compared to +545.2% for the S&P 500 index [25]
Take the Zacks Approach to Beat the Markets: MBX Biosciences, Garrett Motion & Monster Beverage in Focus