Beat the Market the Zacks Way: PDD, Shopify, 3M in Focus

Last Friday, the three most widely followed benchmark indexes closed a winning week. The tech-heavy Nasdaq, the Dow Jones and the S&P 500 gained 2.3%, 2.2% and 1.9%, respectively.The S&P 500 and Nasdaq registered their sharpest weekly advances since August, while the Dow Jones Industrial Average recorded its strongest weekly show since June.The week’s trading reflects a mix of reduced trade-war fears between the United States and China, inflation coming in cooler than expected and U.S. sanctions on Russian oil firms shifting the energy market. The weaker-than-forecast inflation reading bolstered hopes for a rate cut by the Fed, lifting investor sentiment. Next week, markets will focus on upcoming central-bank commentary and big tech earnings.Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market. As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.Here are some of our key achievements:Micron and Napco Security Surge Following Zacks Rank UpgradeShares of Micron Technology, Inc. MU have gained 77.3% (versus the S&P 500’s 5.3% increase) since it was upgraded to a Zacks Rank #1 (Strong Buy) on August 19.Another stock, Napco Security Technologies, Inc. NSSC, which was also upgraded to a Rank #1 on August 28, has returned 14.8% (versus the S&P 500’s 4.7% increase) since then.A hypothetical portfolio of Zacks Rank # 1 (Strong Buy) stocks returned +8.64% in 2025 (through September 1st) vs. +7.60% for the S&P 500 index. This portfolio returned +22.4% in 2024, vs. +28% for the S&P 500 index and +19.9% for the equal-weight version of the S&P 500 index.This hypothetical portfolio returned +20.65% in 2023 vs. +24.83% for the S&P 500 index and +15% for the equal-weight S&P 500 index.The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by more than 12 percentage points since 1988 (through September 1st, 2025, the Zacks # 1 Rank stocks generated an annualized average return of +23.8% vs. +11.3% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>>Check Micron’s historical EPS and Sales here>>>Check Napco’s historical EPS and Sales here>>>Image Source: Zacks Investment ResearchZacks Recommendation Upgrades PDD and Seacoast BankingShares of PDD Holdings Inc. PDD and Seacoast Banking Corporation of Florida SBCF have surged 9.6% (versus the S&P 500’s 4.4% rise) and 6.7% (versus the S&P 500’s 6.1% rise), respectively, since their Zacks Recommendation was upgraded to Outperform on August 29 and August 21.While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>Zacks Focus List Stocks Lam Research, Shopify Shoot UpShares of Lam Research Corporation LRCX, which belongs to the Zacks Focus List, have gained 56.4% over the past 12 weeks. The stock was added to the Focus List on December 5, 2016. Another Focus-List holding, Shopify Inc. SHOP, which was added to the portfolio on September 6, 2022, has returned 39% over the past 12 weeks. The S&P 500 has advanced 6.3% over this period. The 50-stock Focus List portfolio returned 18.3% in 2025 (through September 30th, 2025) vs. +14.8% for the S&P 500 index and +9.9% for the equal-weight version of the index. The Zacks Focus List portfolio returned +18.41% in 2024 vs. +25.04% for the S&P 500 index and +13% for the equal-weight S&P 500 index. The portfolio had returned +29.54% in 2023 vs. +26.28% for the S&P 500 index and +13.61% for the equal-weight S&P 500 index. In 2022, the portfolio returned -15.2% vs. the S&P 500 index’s -17.96%.The portfolio leads the broader market over the preceding one, three, five and ‘since 2004’ periods. These annualized return comparisons are: +16.96% for the Focus List vs. +17.60% for the index over the one-year period, +26.77% vs. +24.94% over the 3-year period, +17.38% vs. +14.48% over the 5-year period, and +12.13% vs. +10.71% since 2004.Unlock all of our powerful research, tools and analysis, including the Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Gain full access now >>Zacks ECAP Stocks Thermo Fisher & Fair Isaac Make Significant GainsThermo Fisher Scientific Inc. TMO, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 19.7% over the past 12 weeks. Fair Isaac Corporation FICO has followed Thermo Fisher with 8.8% returns.The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned +0.20% in the second quarter of 2025 vs. the S&P 500 index’s +10.94% gain (SPY ETF). In the year-to-date period through June 30th, the portfolio returned +3.93% vs. +6.20% gain for the S&P 500 index.For the year 2024, the portfolio returned +16.26% vs. +24.89% for the S&P 500 index (SPY ETF).In 2023, the portfolio returned +12.17% vs. +26.28% for the S&P 500 index. The portfolio returned -4.7% in 2022 vs. the S&P 500 index’s -17.96%.With little to no turnover and annual rebalance periodicity, ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.Zacks ECDP Stocks UnitedHealth and 3M Outperform PeersUnitedHealth Group Incorporated UNH, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 29% over the past 12 weeks. Another ECDP stock, 3M Company MMM, has climbed 11.4% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.Check UnitedHealth’s dividend history here>>> Check 3M’s dividend history here>>>With an extremely low beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk.The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -3.17% in 2025 Q2 vs. the S&P 500 index’s +10.94% gain and the Dividend Aristocrats ETF’s (NOBL) -0.09% return. Year-to-date (through June 30th), the portfolio returned +2.38% vs. +2.18% gain for the Dividend Aristocrat ETF. For the full year 2024, the portfolio returned +6.95% vs. +24.89% for the S&P 500 index and +6.72% for NOBL. The portfolio returned -0.9% in 2023 vs. +26.28% for the S&P 500 index and +8.11% for NOBL. The portfolio returned -2.3% in 2022 vs. -17.96% for the S&P 500 index and -8.34% for NOBL.Click here to access this portfolio on Zacks Advisor Tools.  Zacks Top 10 Stock Credo Technology Delivers Solid ReturnsCredo Technology Group Holding Ltd CRDO, from the Zacks Top 10 Stocks for 2025, has jumped 131.4% year to date compared with the S&P 500 Index’s 15.6% increase.The Top 10 portfolio returned +26.47% this year (through the end of September 2025) vs. +14.84% for the S&P 500 index and +9.9% for the equal-weight version of the index.The Top 10 portfolio returned +62.98% in 2024, vs. +25.04% for the S&P 500 index and +13% for the equal-weight version of the index. The portfolio had returned +25.15% in 2023 vs. +26.28% for the S&P 500 index.Since 2012, the Top 10 portfolio has produced a cumulative return of +2,553.1% through the end of September 2025 vs. +545.2% for the S&P 500 index and +396.4% for the equal-weight version of the index. The portfolio has produced an average return of +26.6% in the period 2012 through September 30, 2025, vs. +13.1% for the S&P 500 index and +10.5% for the equal-weight version of the index.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report 3M Company (MMM): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Fair Isaac Corporation (FICO): Free Stock Analysis Report Seacoast Banking Corporation of Florida (SBCF): Free Stock Analysis Report NAPCO Security Technologies, Inc. (NSSC): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report PDD Holdings Inc. Sponsored ADR (PDD): Free Stock Analysis Report Credo Technology Group Holding Ltd. (CRDO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks