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

• His investment thesis of Advanced Micro Devices (AMD). As the AI market develops, Mayur sees both AMD and Nvidia (NVDA) as well-positioned for success. However, because Nvidia is already a huge company and the industry leader, Mayur believes AMD has more room for growth and a compelling risk/reward ratio.

• Mayur believes one of the key advantages AMD has relative to Nvidia is in inference. Unlike AI training, which requires massive amounts of data (and where Nvidia enjoys a large lead), inference involves interpretation of the real world. In this nascent area of AI, Nvidia does not have a significant advantage over AMD. Inference could be an even bigger market than training over the next 5 years with the rise of real-world AI such as autonomous driving and robotics.

• After reviewing a recent history of AMD in relation to its competitors, as well as its recent stock performance, Mayur highlights two key revenue catalysts for 2025. He argues that if AMD can narrow the software gap with Nvidia, and if AI developers advance autonomous driving and humanoid robots for real-world AI applications, the size of the opportunity ahead is massive relative to AMD’s current market capitalization. Don’t miss this deep dive into the one of the companies on the cutting-edge of the AI revolution.

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 Equity Strategist Mayur Thaker, CFA, discusses:

• The current state of the trade wars and how to navigate them. He encourages investors not to fear tariffs and believes there will be further negotiations. As a result of these negotiations unveiled on “Liberation Day,” Mayur’s believes the trade wars will end with a hybrid of tariffs and free trade.

• Mayur believes tariffs will have a positive result in the long run by bringing jobs back to the U.S., raising substantial revenue for the government, and opening new geographic markets for U.S. companies to sell to. However, he indicates these positive gains will require short-term pain. Mayur dives into Robert Shiller’s CAPE yield spread and believes valuation will be the leading headwind for market returns.

• He ends the call with an overview of U.S. employment and believes there is a low probability of a recession. But with exaggerated valuations, he remains bearish on U.S. stocks and encourages investors to stay defensive with the Zacks Earnings Certain Proxy, comprised of durable, moat-protected companies, including Costco (COST), American Tower (AMT), Mettler Toledo (MTD), and more. Don’t miss this timely overview of the trade war environment.

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:

• An analysis of stocks in the Business Services sector, a wide-ranging area that includes many types of enterprises, from global payments to waste management to credit reporting.

• 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). Using this framework, he examines the most relevant metrics to evaluate Business Services stocks,  from Return on Equity to P/E F12M to Total Debt and many more.

• As part of this analysis, John zooms in on individual equities including  well-known names like Visa Inc (V), S&P Global Inc (SPGI), and Waste Management Inc (WM), and less familiar but noteworthy tickers such as Bowman Consulting Group Ltd (BWMN), Gorilla Technology Group Inc (GRRR), and Airship AI Holdings Inc (AISP). Don’t miss these valuable insights on these stocks that help keep business in business.

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 state of the US Healthcare industry. This area of the economy represents 18% of the country’s GDP, and encompasses three main areas: Drugs, including pharmaceuticals, generic drugs, and biomedical; Medical Services, including nursing homes, hospitals, outpatient care, and health insurance; and Medical Products, such as instruments and devices, information systems and dental products.

• Healthcare is one of the few sectors of the economy that is mostly isolated from macroeconomic cycles in production, consumption, interest rates, commodities, and foreign exchange markets. However, it is also one of the most heavily regulated areas of the economy. Other macro factors impacting Healthcare are declining Medicare reimbursements and the country’s aging population.

• Mayur surveys some of the Zacks top-ranked stocks in this sector, offering his commentary on what is attractive about these companies. Tickers he highlights include AbbVie (ABBV), Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Boston Scientific (BSX), and others. Finally, Mayur offers the pros and cons of investing in this sector, as well as his strategy for picking healthcare stocks. Don’t miss this to get your thorough check-up on Healthcare!

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:

• A journey through stocks in the Transportation sector, focusing on two industries: Air Transportation and Transportation-Other (which encompasses over-the-road and rail shipping, ocean freight, logistics and more). Before diving into the analysis, John discusses the latest trends and developments in both industries, ranging from electric vertical takeoff and landing (eVTOL) to air traffic controller staffing, AI, self-driving trucks, drone delivery 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).

• Using this framework, John examines the most relevant metrics for stocks in these industries. He also highlights noteworthy equities, including big names like Southwest Airlines (LUV), FedEx (FDX), and Union Pacific (UNP), and less familiar but noteworthy tickers such as Schneider National (SNDR) and Bollore SE (BOIVF). Don’t miss these valuable insights on top stocks that help move people and goods around the globe.

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:

• A review of the just-finished Q4 2024 earnings season and a preview of his outlook for the year ahead. As has been the case for years, the “Magnificent 7” big tech stocks again dominated in Q4, but EPS estimates are beginning to fade as we head into 2025.

• Meanwhile, the all-important cyclicals are seeing accelerating growth. Mayur points out that cyclicals, also known as value stocks, have great analytical value as a reflection of the true underlying economy. He argues that if the ISM Manufacturing PMI index has truly turned a corner, cyclicals could lead an expansion of market growth.

• Mayur also discusses the role of tariffs in the new administration’s pro-growth agenda. Finally, he offers his overall forecast for the S&P 500, and ideas for investors looking for deep value Cyclical stocks with strong balance sheets, high ROIC, and attractive valuations. Stocks he highlights include Littelfuse Inc (LFUS), United Parcel Service Inc (UPS), Albemarle Corp (ALB), Gentex Corp (GNTX), and others. Get ready for what’s ahead in 2025 with this essential strategy call!

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: 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.