The three most widely followed indexes in the United States ended the last trading week positively. The Nasdaq Composite, the S&P 500, and the Dow Jones Industrial Average have gained by 2.69%, 1.95%, and 0.58%, respectively. Though there was some encouraging news on softening inflation and a truce over escalating tariffs between China and the United States, the Moody's credit rating downgrade raised concerns over the future economic outlook. For the first time in over a century, Moody’s Ratings downgraded the U.S. government’s credit rating by one notch from AAA to AA1 due to concerns over fiscal stability.

The consumer price index (CPI) rose 0.2% in April after dipping 0.1% in March. On a year-on-year basis, CPI rose 2.3%, the lowest since February 2021. The producer price index (PPI) had a sharp decline of 0.5%  in April as the cost of services declined the most since 2009. In the past 12 months, PPI increased 2.4% in April after climbing 3.4% in March. Though inflation is on track with the Federal Reserve’s 2% target, consumers' expectations for inflation in the next 12 months rose to 7.3% from 6.5% the previous month, as consumers and businesses worried about the impact of tariffs on inflation in the months ahead. Analysts expect the Fed to wait until September before making further interest rate cut decisions. Retail sales rose 0.1% in April, in line with market expectations. According to the University of Michigan reports, the preliminary index for consumer sentiment in May fell to 50.8% from 52.2% in April. This marked the lowest reading for the index’s history.

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:

IHS Holding and British Land Company Following Zacks Rank Upgrade

Shares of IHS Holding Limited IHS have gained 33.6% (versus the S&P 500’s 5.3% increase) since it was upgraded to a Zacks Rank #1 (Strong Buy) on March 21.

Another stock, British Land Company PLC BTLCY, which was upgraded to a Zacks Rank #2 on March 21, has returned 16% (versus the S&P 500’s 5.3% increase) since then.

A hypothetical portfolio of Zacks Rank # 1 stocks returned -8.32% in 2025 (through May 5th) vs. -5.35% 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.

Story Continues

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 May 5, 2025, the Zacks # 1 Rank stocks generated an annualized average return of +23.5% vs. +11% for the S&P 500 index).

The portfolio of Zacks Rank #1 stocks is an equal-weight portfolio, while the S&P 500 index is a market-cap-weighted index that has been notably distorted by the concentrated performance of mega-cap stocks since late 2022.

The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by almost 13 percentage points since 1988 (through the end of January 2025, the Zacks # 1 Rank stocks generated an annualized average return of +23.9% since 1988 vs. +11.3% for the S&P 500 index).

You can see the complete list of today’s Zacks Rank #1 stocks here >>>

Check IHS’ historical EPS and Sales here>>>

Check British Land Company’s historical EPS and Sales here>>>Zacks Investment Research

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Zacks Recommendation Upgrades Stantec and Bankinter

Shares of Stantec Inc. STN and Bankinter, S.A. BKNIY have advanced 21.4% (versus the S&P 500’s 3.5% increase) and 10.8% (versus the S&P 500’s 4.8% increase) since their Zacks Recommendation was upgraded to Outperform on March 25 and March 28, respectively.

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 Axon, Quanta Services Shoot Up

Shares of Axon Enterprise, Inc. AXON, which belongs to the Zacks Focus List, have gained 23.6% over the past 12 weeks. The stock was added to the Focus List on June 3, 2020. Another Focus-List holding, Quanta Services, Inc. PWR, which was added to the portfolio on December 23, 2021, has returned 18.1% over the past 12 weeks. The S&P 500 has decreased 3.1% over this period.

The Focus List portfolio has returned -3.23% through April 30, 2025, vs. -4.92% for the S&P 500 index and -2.88% for the equal-weight version of the index.

The 50-stock 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%.

Since 2004, the Focus List portfolio has produced an annualized return of +11.33% (through the end of April 2025). This compares to a +9.95% annualized return for the S&P 500 index and +9.17% for the equal-weight version of the index in the same time period.

The portfolio lags the broader market over the preceding year (+10.74% vs. +12.12%), but leads over the preceding 3-year (+47.29% vs. +41.16%), 5-year (+122.94% vs. +106.51%), and 10-year (+225.28% vs. +219.55%) periods.

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 Intuit & AutoZone Make Significant Gains

Intuit Inc. INTU, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 15.1% over the past 12 weeks. AutoZone, Inc. AZO has followed Intuit with 11.5% returns.

The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned +3.20% in the first quarter of 2025 vs. the S&P 500 index’s -4.30% decline (SPY ETF).

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 Fastenal and Paychex Outperform Peers

Fastenal Company FAST, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 9.9% over the past 12 weeks. Another ECDP stock, Paychex, Inc. PAYX, has increased 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 Fastenal’s dividend history here>>>

Check Paychex'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 to significantly mitigate risk.

The Zacks Earnings Certain Dividend Portfolio (ECDP) returned +5.74% in 2025 Q1 vs. the S&P 500 index’s -2.41% pullback and the Dividend Aristocrats ETF’s (NOBL) +3.11% return.

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 MasTec Delivers Solid Returns

MasTec, Inc. MTZ, from the Zacks Top 10 Stocks for 2025, has jumped 15.9% year to date, compared with the S&P 500 index’s 1.4% increase.

The Top 10 portfolio returned -7.88% this year (through the end of April 2025) vs. -4.92% for the S&P 500 index and -2.88% 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 +1832.3% through the end of April 2025 vs. +434.2% for the S&P 500 index and +338.6% for the equal-weight version of the index. The portfolio has produced an average return of +24.3% in the period 2012 through April 30, 2025, vs. +11.6% for the S&P 500 index and +9.58% for the equal-weight version of the index.

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Paychex, Inc. (PAYX):Free Stock Analysis Report

Quanta Services, Inc. (PWR):Free Stock Analysis Report

Fastenal Company (FAST):Free Stock Analysis Report

Intuit Inc. (INTU):Free Stock Analysis Report

AutoZone, Inc. (AZO):Free Stock Analysis Report

Stantec Inc. (STN):Free Stock Analysis Report

IHS Holding Limited (IHS):Free Stock Analysis Report

MasTec, Inc. (MTZ):Free Stock Analysis Report

Bankinter SA (BKNIY):Free Stock Analysis Report

Axon Enterprise, Inc (AXON):Free Stock Analysis Report

ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports

British Land Company PLC Sponsored ADR (BTLCY):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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