Take the Zacks Approach to Beat the Market: Dell, Caterpillar, Amkor in Focus

Last Friday, the three major Wall Street indexes closed a mixed week. While the Dow Jones Industrial Average managed a 0.6% progress, the S&P 500 and the Nasdaq fell 2.1% and 4.7% respectively.The sharp selloff in technology stocks followed stronger-than-expected inflation data, which reinforced ex…

Last Friday, the three major Wall Street indexes closed a mixed week. While the Dow Jones Industrial Average managed a 0.6% progress, the S&P 500 and the Nasdaq fell 2.1% and 4.7% respectively.

The sharp selloff in technology stocks followed stronger-than-expected inflation data, which reinforced expectations that the Fed could keep interest rates elevated for longer. Rising Treasury yields also pressured richly valued artificial intelligence and semiconductor stocks, triggering broad profit-taking after months of strong gains.

Meanwhile, the Dow outperformed as investors favored defensive sectors such as healthcare, consumer staples and industrials. A resilient U.S. economy and selective strength in earnings helped cushion losses in blue-chip stocks, even as concerns over lofty tech valuations, persistent inflation and higher borrowing costs weighed on broader market sentiment.

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:

United Microelectronics and Entera Bio Surge Following Zacks Rank Upgrade

Shares of United Microelectronics Corporation UMC have gained 118.8% (versus the S&P 500’s 1.6% increase) since it was upgraded to a Zacks Rank #2 (Buy) on April 28.

Another stock, Entera Bio Ltd. ENTX, which was also upgraded to a Zacks Rank #2 on April 28, has returned 41.7% since then.

A portfolio of Zacks # 1 Rank (Strong Buy) stocks has outperformed the S&P 500 index by almost 8 percentage points this year. Through May 5th, the Zacks # 1 Rank portfolio returned +13.14%, which compares to +5.19% for the S&P 500 index and +7.76% for the equal-weight version of the index in the year-to-date period.

Since its inception in 1988, this portfolio of Zacks # 1 Rank stocks has outperformed the market by 12.6 percentage points. The average annual return for this portfolio of Zacks # 1 Rank stocks since inception in 1988 was +24% through May 5th, which compared to +11.5% gain for the S&P 500 index and +11.3% gain for the equal-weight version of the index.

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

Check United’s historical EPS and Sales here>>>

Check Entera Bio’s historical EPS and Sales here>>>

Zacks Recommendation Upgrades Dell and Prysmian

Shares of Dell Technologies Inc. DELL and Prysmian S.p.A. PRYMY have surged 95.6% and 13.2% (versus the S&P 500’s 2.5% rise), respectively, since their Zacks Recommendation was upgraded to Outperform on April 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 Advanced Micro Devices, Caterpillar Shoot Up

Shares of Advanced Micro Devices, Inc. AMD, which belongs to the Zacks Focus List, have gained 158.2% over the past 12 weeks. The stock was added to the Focus List on May 19, 2025. Another Focus-List holding, Caterpillar Inc. CAT, which was added to the list on April 18, 2017, has returned 43.4% over the past 12 weeks. The S&P 500 has advanced 14.6% over this period.

The 50-stock Focus List portfolio returned +10.73% in 2026 (through the end of May) vs. +11.27% for the S&P 500 index and +9.53% for the equal-weight version of the index.

The portfolio returned +22.1% in 2025 vs. +17.9% for the S&P 500 index and +11.4% 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%.

Through May 31st, 2026, the portfolio’s rolling returns on a one-year, three-year, five-year, ten-year, and since 2004 have been +31.42% (vs. +29.78% for the S&P 500 index), +24.26% (vs. +23.62%), +12.94% (vs. +14.15%), +16.40% (vs. +15.64%) and +12.42% vs. (+11.03%), respectively.

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 UnitedHealth & Automatic Data Processing Gain Significantly

UnitedHealth Group Incorporated UNH, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 65.2% over the past 12 weeks. Automatic Data Processing ADP followed UnitedHealth with 11.1% returns.

The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -7.14% in 2026 Q1 vs. -4.33% for the S&P 500 index.

For 2025, the portfolio returned -1.67% vs. +17.9% 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 J. M. Smucker & Hormel Foods Outperform Peers

The J. M. Smucker Company SJM, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 21.4% over the past 12 weeks. Another ECDP stock, Hormel Foods Corporation HRL, has climbed 14.9% 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 J.M. Smucker’s dividend history here>>>

Check Hormel Foods’ 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 -1.43% in 2026 Q1 vs. -4.33% for the S&P 500 index and +2.3% for the Dividend Aristocrats ETF (NOBL).

The portfolio returned -0.6% in 2025 vs. +6.8% 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 Amkor Technology Delivers Solid Returns

Amkor Technology, Inc. AMKR, from the Zacks Top 10 Stocks for 2025, has jumped 83.4% since January 5, 2026, compared with the S&P 500 Index’s 6.4% increase.

The Top 10 portfolio retuned +19.72% in 2026 (through May 31st) vs. +11.27% for the S&P 500 index and +9.53% for the equal-weight version of the index.

The Top 10 portfolio returned +22.6% in 2025 vs. +17.9% for the S&P 500 index and +11.4% 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.

Through the end of May 2026, the Top 10 portfolio has produced a cumulative return of +3,001.9% since 2012 vs. +636.2.3% for the S&P 500 index and +451.2% for the equal-weight version of the index. The portfolio has produced an average annual return of +26.6% in the period 2012 through May 31st, 2026 vs. +13.7% for the S&P 500 index and +11.03% for the equal-weight version of the index.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>

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