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

• Top stocks among Conglomerates, defined as corporations composed of several different, independent businesses. In a conglomerate, one company owns a controlling stake in several smaller companies, all of which conduct business separately and independently. John notes that some conglomerates are incredibly profitable, and in this presentation, he will show which ones look the strongest.

• As John has done in recent 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 then examines key metrics for leading Conglomerates stocks, focusing on revealing data including Revenue F12M, Reinvestment Rates, Net Margin TTM %, Cash Flow Yield %, Enterprise Value/Sales and many others. Tickers he discusses range from familiar brands like Hitachi Ltd (HTHIY) and 3M Co (MMM) to less well-known names such as Carlisle Companies, Inc (CSL), Bunzl plc (BZLFY), Star Equity Holdings Inc (STRR), to name just a few. Don’t miss this in-depth analysis of conglomerates from Zacks’ Chief Equity Strategist!

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

• The macroeconomic signs that indicate it may be time to allocate into our defense-oriented Earnings Certain Portfolio (ECP). First, Mayur outlines the ECP investing thesis. The ECP family of portfolios include high-quality, recession-resistant companies that are durable, moat-protected, low volatility, with steady earnings growth. ECP members include Clorox (CLX), Novo Nordisk (NVO), J M Smucker (SJM), American Tower (AMT), to name just a few.

• Mayur then looks at data that suggests an increasingly high probability for a downturn or recession in the months ahead. From household employment to the unemployment rate, permanent job losers to job openings (JOLTS), as well as many other labor metrics, Mayur shows that while a recession isn’t a certainty, it is a growing probability.

• To wrap up this discussion, Mayur offers a plan of action to recession-proof your portfolio. He presents 4 indicators he is watching to know when it’s time to go defensive. The first 2 have already happened, but he recommends remaining long on risk assets for now. When the other 2 indicators are triggered, go full-blown defensive with the Zacks Earnings Portfolio. Don’t miss this important and timely analysis of our current volatile market.

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

• The latest entry in his regular series of macro updates. This week, Mayur zooms in on the labor market—an area of the economy that, up until now, has been strong. However, key job numbers including job openings (JOLTS), unemployment rate, full-time jobs and many others are trending toward recessionary levels.

• More alarming, cyclical employment indicators have been in YoY contraction for 12 consecutive months. These are leading indicators for a recession. Mayur also notes that rising unemployment is already being felt in consumer behavior, as seen in reduced personal savings and retail sales, plus sharply rising credit card and auto loan delinquencies.

• Does all this mean we’re headed for a recession? Mayur believes that a small rise in unemployment could push the economy into a recession. That’s not even considering the prospect of another bank crisis due to continuing enormous pressures in commercial real estate, consumer loan delinquencies, and more. While Mayur doesn’t recommend immediate portfolio changes, he is watching three key metrics that will prompt him to go full-blown defensive. Watch this week’s video to learn what those 3 recession indicators are!

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

• An in-depth analysis of which way the U.S. market and economy are headed this year, with an emphasis on current S&P 500 dynamics as well as various key sectors. To illustrate his findings, he uses Zacks charts to highlight key data and trends including Price Momentum Index, PEG Ratio, Price/Book, Dividend Yield %, Volatility, Equity Risk Premium and many more metrics.

• John puts his equity market analysis into context with a review of the latest U.S. economic stats ranging from PMI and other manufacturing gauges to Disposable Income, Consumer Confidence, various Housing indicators and more.

• To wrap up, John looks at key measures of inflation and bond rates, walking through Treasury 10-year yields, TIPS, the Treasury yield curve, inflation gauges including CPI and much more. Don’t miss this thorough review of the current state of the stock market and the economy.

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

• Top stocks in the Basic Materials sector, a huge, worldwide topic that includes industries such as Chemicals, Paper, Steel, Non-Ferrous Metals, and Agribusiness. As he has done in recent analyses, 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).

• Using this framework, John then examines key metrics for these leading names, using Zacks charting to illustrate comparisons of the most relevant trends for these companies. To point out strengths and weaknesses among these stocks, he looks at metrics ranging from Revenue F12M, EPS F12M, EPS Consensus, EPS Surprise, Net Margin TTM %, Return on Capital TTM %, and other measures.

• Because he uses these 3 types of screening metrics, John’s review of “top” players includes everything from enormous (and sometimes state-owned) corporations to small and often fairly new enterprises. Among the Basic Materials tickers he looks at are Linde PLC (LIN), Southern Copper (SCCO), Ecolab Inc (ECL), Klabin SA ADR (KLBAY), Perimeter Solutions SA (PRM), Steel Dynamics Inc (STLD), and many others. Don’t miss this in-depth equity analysis of the companies that produce the basics that we use to make just about everything!

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

• Top stocks in the Auto/Tires/Trucks sector, a huge and global topic that encompasses automobiles, replacement parts, tires, engines, and trucks produced in the U.S., Europe, China, Japan and elsewhere. As John as done in recent 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).

• Using this framework, John then examines key metrics for these leading names, using Zacks charting to illustrate comparisons of the most relevant trends for these companies. To point out strengths and weaknesses among these stocks, he looks at metrics ranging from Revenue F12M, EPS F12M, EPS Consensus, EPS Surprise, EBIT TTM, Cash Flow Yield %, and other measures.

• Because he uses these 3 types of screening metrics, John’s review of “top” players includes both large and relatively small companies, and both familiar and less well-known names. Among the tickers he discusses are General Motors (GM), Tesla Inc. (TSLA), Paccar Inc. (PCAR), Nio Inc. (NIO), Goodyear Tire & Rubber Co. (GT), Genuine Parts Co. (GPC), and many others. Don’t miss this in-depth automotive stock analysis from Zacks’ Chief Equity Strategist!

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

• The latest entry in his regular series of macro updates. Mayur reviews the growing number of macroeconomic indicators that signal that a recession is ahead, though perhaps not imminent. Manufacturing gauges have been in recession for 18 months; the 10y – 2y UST yield curve has been inverted for 23 months; employment indicators including permanent job losers, cyclical employment, JOLTS and others are entering contraction; excess savings is nearly exhausted; and credit card delinquencies are rising…to name just a few.

• Meanwhile, the stock market continues to barrel ahead thanks to what Mayur characterizes as a “Goldilocks” blend of conditions including easing inflation, easing long-term yields, and more. While analysts look for 10% EPS growth in 2024, Mayur believes these estimates will be marked down as the sharp rise in the cost of capital will inevitably lead to rising delinquencies, defaults, bankruptcies, and ultimately job cuts.

• When does Mayur predict the recession will take hold? He doesn’t offer a specific date, but offers three key metrics for investors to watch that will signal when it’s time to go “full-blown defensive.” He also offers a defensive portfolio that he believes will offer investors the best protection from an economic downturn. Find out what Mayur’s key recession warning signs are in this week’s video, and be prepared for whatever the market brings in 2024!

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

• A follow-up to his recent “Portfolio Insights Delivered by Top Consumer Stocks” video. This week, John continues this portfolio management theme using top stocks in the Medical sector, in comparison to stocks in three other market sectors—Consumer Discretionary, and Consumer Staples, and Retail-Wholesale.

• John uses three criteria to find and to analyze top stocks in Medical (and the other sectors): market capitalization; the maximum number of analysts following the stock; and the largest one-month change in F1 estimates. By comparing metrics for stocks using various criteria, and also looking at differing weights for these stocks in a portfolio, he demonstrates how insights can be revealed to optimize performance, reduce risk, and more.

• John offers return analyses of various hypothetical Medical stock portfolios, and how they compare with other sectors. In addition, John provides a two-part Zacks Rank analysis, first using a trend EPS growth variable, followed by a standardized unexpected earnings variable. Don’t miss this interesting and helpful portfolio management webinar.

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

• Two stocks that have been recently added to the Zacks Earning Certain Portfolio (ECP), and that are emblematic of the quality we look for when choosing members for this model portfolio. To begin today’s talk, Mayur walks through the 4 factors that comprise the Zacks definition of quality: high and durable earnings linearity, earnings growth, return on invested capital, and free cash flow conversion.

• The two new ECP members Mayur presents are CGI Inc. (CGI) and Gartner Inc. (IT). These companies are both technology-oriented, and provide excellent illustrations of what it means to be a quality company. To illustrate this, Mayur walks through some key metrics for each stock, including EPS, ROIC, Free Cash Flow Conversion, and many others.

• Mayur then dives into the latest earnings reports issued by both companies, covering the first 3 months of 2024. He looks at their actual reported numbers, as well as guidance for the rest of the year, to demonstrate the ‘high and durable’ performance that makes these companies perfect for the Earnings Certain Portfolio. Don’t miss this week’s webinar—it’s an excellent primer on how to discover quality stocks that can deliver long-term shareholder value.

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

• Portfolio management, and an approach to gain insights for those who want to build and maintain single-stock portfolios. John illustrates this analysis using top stocks in three key market sectors—Retail-Wholesale, Consumer Discretionary, and Consumer Staples.

• John uses three criteria to find and to analyze the 6 top stocks in each sector: First, market capitalization; second, the largest one-month change in F1 estimates; and finally, the maximum number of analysts following the stock. By comparing metrics for stocks using various criteria, and also looking at differing weights for these 6 top stocks in a portfolio, he demonstrates how insights can be revealed to optimize performance, reduce risk, and more.

• Using this “top stock” criteria, John examines how these 6 stocks perform as a portfolio, with the goal of gaining insights as to their variation, returns, and correlations. This analysis includes major, well-respected stocks, from Walmart (WMT) to Amazon (AMZN), Target (TGT to Dollar General (DG), and Procter & Gamble (PG) to Coca Cola (KO). Don’t miss this intriguing and useful webinar.