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This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:

• Top ideas in the Utilities sector, focusing on two industries: Telecom and Water. Before diving into the analysis, John discusses the latest industry trends and developments, including regulatory developments, autonomous treatment plans, financial performance challenges, and more.

• Following his usual methodology, John defines “top” stocks in three ways: by market capitalization, by number of analysts following the stock, and by largest percent change in F1 EPS estimate (the most important element used in assigning a Zacks Rank to stocks).

• With this framework, John examines the most relevant metrics for stocks in these industries. He also highlights noteworthy equities, including Telecom Italia Group (TIIAY), Essential Utilities (WTRG), American States Water Company (AWR), York Water Company (YORW), and more. Don’t miss these valuable insights on the top stocks that help make the world go round.

The views of John Blank, PhD are not necessarily the views of Zacks Investment Research.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The S&P 500 is an unmanaged index.

This week, Zacks Equity Strategist Mayur Thaker, CFA, discusses:

• The Zacks Deep Value Portfolio, our newest portfolio of 30 high-conviction stocks. These businesses are a cross between high value and high quality, and Mayur dives into how Zacks targets this cross between quality businesses and attractive prices.

• He shares the criteria required for a business to succeed and describes the Zacks approach to value investing. One thing these companies have in common is substantial multiple compression to normalized earnings and an established track record of core quality characteristics.

• Lastly, Mayur shares a case study using Albemarle (ALB), the world’s largest lithium producer for EVs, battery storage systems, and consumer electronics. He ends the call sharing top ideas in Deep Value Cyclicals, including Littelfuse (LFUS), Bank OZK (OZK), and more. Don’t miss this valuablestrategy call that introduces our latest portfolio.

The views of Mayur Thaker, CFA are not necessarily the views of Zacks Investment Research.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The S&P 500 is an unmanaged index.

This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:

• Top ideas in the Utilities sector, focusing on two industries: Electric Power and Gas Distribution. Before diving into the analysis, John discusses the latest trends and developments in both industries, including integration of AI, increased natural gas use, virtual power plants, rising electricity demand, and the impact of the recent DeepSeek story.

• Following his usual methodology, John defines “top” stocks in three ways: by market capitalization, by number of analysts following the stock, and by largest percent change in F1 EPS estimate (the most important element used in assigning a Zacks Rank to stocks).

• With this framework, John examines the most relevant metrics for stocks in these industries. He also highlights noteworthy equities, from familiar names such as Pacific Gas & Electric (PGE), Exelon Corp (EXE) and Duke Energy Corp (DUK)  to less well-known but intriguing companies such as Iberdrola SA (IBDRY), Atmos Energy Corp (ATO), and Clean Energy Fuels Corp (CLNE). Get ready for 2025 with this essential analysis of the names that keep the lights on and our homes warm.

The views of John Blank, PhD are not necessarily the views of Zacks Investment Research.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The S&P 500 is an unmanaged index.

This week, Zacks Equity Strategist Mayur Thaker, CFA, discusses:

• The recession that never happened…and what is next for the economy and market. Since Q2 2023, Mayur has made the case for a coming recession, based on “red flag” signals that have been reliable indicators of past recessions. However, these turned out to be false flags, and in this video Mayur walks through 10 of these signals, including ISM Manufacturing, Zacks Cyclical Proxy, inverted Treasury yield spread, unemployment rate, and others.

• Since these signals seem to be false flags for recession, what lies ahead? Mayur focuses on valuation risk, whether manufacturing can sustain its recovery, and how the new administration’s policies—including tariffs, tax cuts, and deportations of illegal immigrants—may affect the economy and markets.

• Mayur no longer believes recession is the base case, and offers his recommendations for investors. While he thinks it is a good idea to remain long the S&P 500, he also favors the Zacks Earnings Certain and the Zacks Deep Value Portfolios, which both offer high-quality companies that are able to withstand market volatility.

The views of Mayur Thaker, CFA are not necessarily the views of Zacks Investment Research.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The S&P 500 is an unmanaged index.

This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:

• Top ideas in the Finance sector, focusing on three industries: Investment Brokers & Managers, Investment Funds, and Real Estate. While John’s previous sector analyses have been limited to stocks, in this week’s overview he has added an overview of ETFs that cover this sector.

• Following his usual methodology, John defines “top” stocks in three ways: by market capitalization, by number of analysts following the stock, and by largest percent change in F1 EPS estimate (the most important element used in assigning a Zacks Rank to stocks).

• With this framework, John examines the most relevant metrics for stocks in these industries. He also highlights noteworthy equities, ranging from familiar names like JPMorgan Chase & Co (JPM) and Public Storage (PSA) to less well-known but intriguing companies such as Tradeweb Markets Inc (TW) and Gaming and Leisure Properties Inc (GLPI). And as noted above, John also offers return analysis of ETFs covering the Finance sector, including IWF, XLF, RSP, and others. Get ready for 2025 with this essential analysis of Finance stocks and ETFs.

The views of John Blank, PhD are not necessarily the views of Zacks Investment Research.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The S&P 500 is an unmanaged index.

This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:

• The U.S. economy’s four-year cycle, from the recession low of 2020 going into 2025. He covers immigration, a glance at the U.S. economy, and U.S. financial conditions. John starts by laying out the Federal Reserve’s economic projections and how they have changed from June. He looks at unemployment, core PCE inflation, and Federal fund rate projections.

• The effects of the immigration surge on the federal budget and the economy. Next, he dives into key economic indicators that provide a snapshot of the U.S. economy. He looks at U.S. Real Gross Domestic Product (GDP), Real Personal Consumption Expenditures, unemployment, inflation, and more.

• U.S. financial conditions, including the 10-year Treasury, real estate interest rates, the St. Louis Fed Financial Stress Index, and more. He wraps up the discussion by sharing why he believes there will be no recession going into 2025. Don’t miss out on this valuable end-of-year analysis.

The views of John Blank, PhD are not necessarily the views of Zacks Investment Research.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The S&P 500 is an unmanaged index.

This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:

• Top stocks in the Finance sector, including Major Banks, Banks and Thrifts, Finance (including the credit card industry), and Insurance. Before diving into the analysis, John discusses the latest trends and developments in this sector, ranging from consolidation and mergers to AI-driven services, decentralized banking solutions and crypto, rising rates and Federal regulations, and more.

• As John has done in previous analyses, he defines “top” stocks in three ways: by market capitalization, by number of analysts following the stock, and by largest percent change in F1 EPS estimate (the most important element used in assigning a Zacks Rank to stocks).

• With this framework, John examines key metrics for stocks in these industries, including Return on Equity TTM %, EPS F12M, Net Margin TTM%, Enterprise Value/Sales F12M and many more. Stocks mentioned in today’s discussion include household names such as HSBC Holdings plc (HSBC), Discover Financial Services (DFS), and Allstate Corp (ALL), plus less familiar but relevant companies such as ICICI Bank Ltd (IBN), First Foundation Inc (FFWM), Loandepot Inc (LDI), and many other important and active players in the Finance arena.

The views of John Blank, PhD are not necessarily the views of Zacks Investment Research.

This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:

• The best-performing portfolios in 2024, constructed using John’s analyses of top stocks in four key sectors—Conglomerates, Aerospace, Oil & Energy, and Computers and Technology.

• In videos throughout 2024, John has screened for winners in these (and other) sectors using three criteria to define top stocks: market capitalization; number of analysts following the stock; and largest percent change in F1 EPS estimate (the most important element used in assigning a Zacks Rank to stocks). In this week’s session, he evaluates 6-stock portfolios in each sector, built using each of the three definitions, to see which ones did the best. Interestingly, each one of the three criteria produced the winning portfolio in at least one sector.

• Finally, John presents a portfolio of a combined set of tickers from all four sectors—two from each of the winning portfolios— to create an overall winner. This portfolio produced a 35% annual return, which is triple the 2024 return for the S&P 500. You do not want to miss this review of how this portfolio construction system performed in 2024!

The views of John Blank, PhD are not necessarily the views of Zacks Investment Research.

This week, Zacks Equity Strategist Mayur Thaker, CFA, discusses:

His lates update in gold. Mayur dives into the performance data of gold and the S&P, showing that gold has soared over the past year. Contrary to popular opinion, Mayur suggests gold behaves differently from the consumer price index and reflects forward-looking excess liquidity. By looking at trends in the federal government budget alongside past gold prices, Mayur believes gold can forecast the direction of a future government deficit or surplus.

Mayur’s data shows that as of August 2024, the fiscal deficit is the fourth largest in the last 100 years, and the most severe in any non-emergency year. He believes this alongside rallying gold prices over the past year may indicate rising excess liquidity. Mayur suggests that while gold may signal an upcoming recession or increasing deficit spending, it has been notably weaker following the Presidential election result, indicating decreasing expectations of excess liquidity due to stronger private sector growth expectations.

He wraps up his discussion indicating the Trump agenda can either be very bullish or very bearish depending on the order the agenda is carried out and provides a key signal to watch for to determine which outcome is most likely for the coming year. Mayur strongly advocates caution to investors and urges a repositioning of assets into quality businesses that comprise the recession-resistant Zacks Earnings Certain Portfolio. Some of these companies include Costco, Novo Nordisk, and more. Don’t miss this valuable analysis.

The views of Mayur Thaker, CFA are not necessarily the views of Zacks Investment Research.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The S&P 500 is an unmanaged index.

This week, Zacks Chief Equity Strategist and Economist John Blank, PhD discusses:

• More top stocks in the Oils & Energy sector. After his previous discussion focused on companies that produce energy used for electrical power generation, this week’s discussion looks at fuels used primarily for transportation, specifically road, marine and aviation. The three industries he covers in this week’s discussion are Oil-Miscellaneous, Oil-Integrated, and Oil & Gas Production-Pipeline.

• To begin, John looks at the latest trends and developments in these industries, including biofuel consumption, both in transportation but now also biogas usage for heating (especially in Europe as a result of Russian pipeline issues). Then he reviews top stocks using his three definitions: market capitalization; number of analysts following the stock; and largest percent change in F1 EPS estimate (the most important element used in assigning a Zacks Rank to stocks).

• With this framework, he examines the essential metrics for the stocks in these industries, such as Return on Equity, Total Debt, Reinvestment Rates, EPS F12M, Net Margin TTM %, and more. His survey includes some of the world’s leading energy companies such as TotalEnergies SE (TTE), Exxon Mobil (XOM), Shell (SHEL) and BP (BP), as well as other essential players in this sector including Kinder Morgan (KMI), ONEOK (OKE), Williams Companies (WMB), and many others. Don’t miss this important review of the companies that power our world from Zacks’ Chief Equity Strategist!

The views of John Blank, PhD are not necessarily the views of Zacks Investment Research.