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.