Beat the Market the Zacks Way: IPG Photonics, Celanese, Costco in Focus

Last week, three benchmark U.S. indexes: the Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average all finished in the red, falling 2.60%, 2.41%, and 2.48%, respectively. Escalating conflict in the Middle East, oil shock, inflation worries and a cooling labor market have sparked fears of stagflation amongst market participants. This combination of events has pushed the CBOE Volatility Index (VIX) to 29.49, signaling intense market uncertainty and rising fear of a downturn.

Disruption of shipping activity due to rising military tensions in the Strait of Hormuz led to a 36% spike in oil prices, with WTI crude briefly reaching $120 before settling at around $90-100 per barrel. Meanwhile, the February Consumer Price Index (CPI) showed persistently sticky inflation, primarily due to rising energy costs and shelter prices. In the 12 months through February, the CPI remained steady at 2.4%, while the monthly CPI rose 0.3%, slightly faster than the 0.2% increase in January.

The February jobs report indicates a softening labor market. Unemployment edged up to 4.4% from 4.3% in January. Nonfarm payrolls decreased by 92,000 jobs in February after a downwardly revised 126,000 increase in January. The decline in employment was partly due to a strike by healthcare workers and a winter storm, which also affected payrolls in the construction, leisure and hospitality sectors. Most analysts believe that the Federal Reserve will keep interest rates unchanged, as policymakers are balancing the need to support a weakening labor market with the need to maintain higher rates to curb energy-induced inflation.

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:

IPG Photonics and Cirrus Logic Following Zacks Rank Upgrade

Shares of IPG Photonics Corporation IPGP have gained 43.1% (versus the S&P 500’s 4.1% decrease) since it was upgraded to a Zacks Rank #1 (Strong Buy) on January 15.

Another stock, Cirrus Logic, Inc. CRUS, which was also upgraded to a Zacks Rank #1 on January 15, has returned 7.5% (versus the S&P 500’s 4.1% decrease) since then.

Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

An equal-weight portfolio of Zacks Rank #1 (Strong Buy) stocks outperformed the equal-weight S&P 500 index by 7.7 percentage points in the year-to-date 2026 period (through March 3, 2026); The Zacks Rank #1 stocks returned +6.57% through March 3^, while the equal-weight S&P 500 index lost -1.14% of its value.

In 2025, this hypothetical equal-weight portfolio returned +17.81% vs. +10.85% for the index, while performance comparison was +22.4% vs. +13.7% in 2024. Over the preceding 10-year period (2016 through 2025), this portfolio of qual-weight Zacks Rank #1 stocks outperformed the equal-weight S&P 500 index by more than 7 percentage points (+18.55% vs. +11.65%).

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

Check IPG Photonics’ historical EPS and Sales here>>>

Check Cirrus Logic’s historical EPS and Sales here>>>

Image Source: Zacks Investment Research

Zacks Recommendation Upgrades Sun Hung Kai and Legence

Shares of Sun Hung Kai Properties Limited SUHJY and Legence Corp. LGN have advanced 20.7% (versus the S&P 500’s 4.5% decrease) and 9.9% (versus the S&P 500’s 4.3% decrease) since their Zacks Recommendation was upgraded to Outperform on January 14 and January 16, 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.

Zacks Focus List Stocks Celanese, Cheniere Energy Shoot Up

Shares of Celanese Corporation CE, which belongs to the Zacks Focus List, have gained 41% over the past 12 weeks. The stock was added to the Focus List on December 5, 2016. Another Focus-List holding, Cheniere Energy, Inc. LNG, which was added to the portfolio on September 6, 2022, has returned 33.3% over the past 12 weeks. The S&P 500 has decline 2.2% over this period.

The 50-stock Focus List portfolio returned +6.65% in 2026 (through February 28) vs. +0.68% for the S&P 500 index and +7.06% 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 February 28, 2026, the portfolio’s rolling returns on a one-year, three-year, five-year, ten-year, and since 2004 have been +29.35% (vs. +17% for the S&P 500 index), +23.13% (vs. +21.81%), +14.15% (vs. +14.19%), +16.79% (vs. +15.50%) and +12.38% vs. (+10.66%), 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 Costco & Church & Dwight Make Significant Gains

Costco Wholesale Corporation COST, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 17.2% over the past 12 weeks. Church & Dwight Co., Inc. CHD has followed Costco Wholesale with 15.6% returns.

The Zacks ECAP, which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -2.3% in the fourth quarter of 2025 vs. the S&P 500 index’s +2.7% gain (SPY ETF). For 2025 as a whole, 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 Quest Diagnostics and Public Storage Outperform Peers

Quest Diagnostics Incorporated DGX, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 11.8% over the past 12 weeks. Another ECDP stock, Public Storage PSA, has also climbed 11.3% 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 Quest Diagnostics‘s dividend history here>>>

Check Public Storage'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 ECDP returned -2.1% in 2025 Q4 vs. the S&P 500 index’s +2.7% gain and the Dividend Aristocrats ETF’s (NOBL) +1.6% return. For 2025, the portfolio returned -0.6% vs. +6.8% gain for the Dividend Aristocrat ETF.

For the full year of 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 FirstCash Delivers Solid Returns

FirstCash Holdings, Inc. FCFS, from the Zacks Top 10 Stocks for 2026, has jumped 23.2% since the list was released on January 5, 2026, compared with the S&P 500 index’s 3.1% decrease during this period.

The Top 10 portfolio retuned +10.5% in 2026 (through February 28) vs. +0.5% for the S&P 500 index and +6.3% 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 February 2026, the Top 10 portfolio has produced a cumulative return of +2,761.6% since 2012 vs. +564.8% for the S&P 500 index and +435% for the equal-weight version of the index. The portfolio has produced an average annual return of +26.4% in the period 2012 through February 28, 2026 vs. +13% for the S&P 500 index and +11% for the equal-weight version of the index.

Zacks' Research Chief Picks Stock Most Likely to "At Least Double"

Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.

See Our Top Stock to Double (Plus 4 Runners Up) >>

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

Public Storage (PSA): Free Stock Analysis Report

Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report

Costco Wholesale Corporation (COST): Free Stock Analysis Report

Church & Dwight Co., Inc. (CHD): Free Stock Analysis Report

FirstCash Holdings, Inc. (FCFS): Free Stock Analysis Report

Celanese Corporation (CE): Free Stock Analysis Report

Cheniere Energy, Inc. (LNG): Free Stock Analysis Report

Cirrus Logic, Inc. (CRUS): Free Stock Analysis Report

Sun Hung Kai Properties Ltd. (SUHJY): Free Stock Analysis Report

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

IPG Photonics Corporation (IPGP): Free Stock Analysis Report

Legence Corp. (LGN): Free Stock Analysis Report

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

Zacks Investment Research