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

• His favorite metric, ROIC (Return on Invested Capital), and an updated look at a simple screen that can reveal companies that beat the market—big time. A self-described “ROIC fanatic”, Mayur has developed a screen that uses just 3 criteria: S&P 500 membership; Top 30% in terms of change in ROIC; and Top 10% in terms of revenue growth predictability.

• This screen delivers a group of 15 stocks, and Mayur sets a rebalance frequency of 12 weeks. Backtesting this screen from 2000 – 2025 delivers some truly eye-popping results, with double the total compounded return percentage of the S&P 500.

• Mayur also backtests the screen for the years 2015 – 2025, a period that included a long bull run, the Covid crash, and the post-Covid recovery. Even with the strong S&P 500 performance in this period, the screen significantly outperformed. Don’t miss this valuable look at Mayur’s “little screen that beats the market.”

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:

• Analysis of key U.S. importers and exporters, using fundamentals charts and price, EPS consensus, and EPS surprise charts. In addition, John looks at potential disruptions and distortions to supply chains, and discusses the paradoxical trade objectives the U.S. faces as the world’s reserve currency.

• In assessing the impact of tariffs on importers, John looks at metrics including Free Cash Flow, Net Margin %, Revenue F12M and others, for mainly large-cap stocks such as Walmart (WMT), Home Depot (HD), Nike (NKE) and more. John also reviews these metrics for exporters, including tickers like Apple (AAPL), Exxon Mobil (XOM), Boeing (BA) and others.

• John wraps up with a review of other important tariff-related factors. He discusses major supply chain maritime routes, including trade volumes and shipping duration for each. He also looks at various functions in today’s highly complex supply chains, and how tariffs may impact them. Finally, he shares economist Robert Triffin’s theory concerning conflicting trade objectives when a nation’s currency also serves as a global reserve currency (like the U.S. dollar). Don’t miss this deep dive on the impact of tariffs for major U.S. companies.

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:

• More on tariffs and their role in international trade, business, foreign relations, and the economy. This week, John uses data and charts to detail the potential impacts of the 2025 Trump tariffs. As an economist with a PHD from MIT, John is ideally qualified to deliver an expert presentation about this critical issue.

• First, John delivers a macro perspective on trade, tariffs, and foreign exchange rates. He walks through key concepts including Intellectual Property Rights, Industrial Property Rights, the TRIPS Agreement and more. He also looks at the impact of the proposed tariffs on U.S. GDP, on long and short term Treasury yields, and on bilateral foreign exchange rates and equity indices for key countries, and other metrics that will likely be affected.

• John then reviews the most important potential effects of these tariffs on U.S. trade and economy, as well as global impacts. Positive outcomes could include reshoring of manufacturing and highlighting trade imbalances, while the negative consequences may include higher costs and supply chain disruptions. He also shares the bear market case of a “voluntary trade reset recession” laid out by Torsten Slok, Chief Economist at Apollo Global Management. Learn more about the fast-developing and essential topic of tariffs with this week’s strategy presentation.

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:

• 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 Chief Equity Strategist and Economist John Blank, PhD discusses:

• A timely and important overview of tariffs and their role in international trade, business, foreign relations, and the economy. As an economist with a PHD from MIT, John is perfectly suited to deliver this presentation about how tariffs work and the potential positive and negative impacts of tariffs—and specifically those currently being considered and implemented.

• John begins with an explanation of key terms (Exchange Rate, Purchasing Power Parity, etc.), followed by a review of types of tariffs, characteristics of tariffs (such as revenue generation, political tool, and others). He describes objectives as well as potential drawbacks, and walks through a history of tariffs, from the beginning of the 20th century to those from the first and current Trump terms.

• For the second part of this talk, John uses vivid charts to illustrate the current state of play. He shows charts for Total Trade, Imports & Exports, and other tariff-related data between the U.S. and our most important trading partners, including Canada, Mexico, China, the EU, and ASEAN countries. Get up to speed on this fast-moving and absolutely essential topic with this week’s strategy presentation.

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 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 Chief Equity Strategist and Economist John Blank, PhD discusses:

• A quarterly analysis of the S&P 500’s performance and outlook, plus a focus on prospects for Tesla Inc (TSLA). When discussing the S&P 500, this is highly relevant, since Tesla is one of the “Magnificent 7” companies that have had an outsize influence on the direction of the index, especially in the last few years.

• John’s analysis of the S&P 500 includes many of the same elements as he uses in his stock analyses, including PEG Ratio, Enterprise Value/Cash Flow, P/E F12M and other metrics. In addition he looks at macro indicators that affect the index, such as Consumer Confidence, Disposable Income, Inflation, and ISM Manufacturing Production Index (PMI).

• Finally, John takes a look at what’s ahead for Tesla, a company that has been in the news for reasons other than its cars. John goes through earnings fundamentals and other technicals, the Zacks analysis of Tesla, including Reasons to Buy and Risks—and he even consults with AI on Tesla’s future. Don’t miss this highly relevant discussion of our country’s most famous stock index and one of its most controversial companies.

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.