Beat the Market the Zacks Way: F5, Atlanticus, Starbucks in Focus

2026.06.22 12:06 (GMT+0)

Beat the Market the Zacks Way: F5, Atlanticus, Starbucks in Focus

Last week, the U.S. economy showed a mix of strength and caution. Three major indexes — the tech-heavy Nasdaq Composite index, the S&P 500 and the Dow Jones Industrial Average — declined by 0.62%, 0.71% and 0.21%, respectively, in the holiday-shortened trading week. Though markets responded positively to easing tensions in the Middle East, some cracks remained visible.

News of a temporary peace agreement between the United States and Iran helped bring oil prices down in the range of $77-$80 per barrel, easing inflation concerns. Consumer spending remained relatively steady, with May retail sales rising 0.9%, suggesting that households are willing to spend even as borrowing costs remain elevated. Manufacturing also stayed resilient as the Philadelphia Fed index rebounded to 10.3 in June 2026, bouncing back from -0.4 in May.

Housing starts fell to a six-year low of 1.18 million units, highlighting continued weakness in the housing market. The Federal Reserve kept interest rates unchanged at 3.50-3.75%, signaling that controlling inflation remains a higher priority than cutting rates for now. Overall, the economy appears to be slowing at a manageable pace rather than slipping into a downturn, keeping hopes alive for a soft landing in the months ahead.

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:

F5 and Viavi Solutions Following Zacks Rank Upgrade

Shares of F5, Inc. FFIV have gained 27.4% (versus the S&P 500’s 4.5% increase) since it was upgraded to a Zacks Rank #2 (Buy) on April 20.

Another stock, Viavi Solutions Inc. VIAV, which was upgraded to a Zacks Rank #2 on April 22, has returned 20.8% (versus the S&P 500’s 5.4% increase) 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.

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 5, 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 5, 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 F5’s historical EPS and Sales here>>>

Check Viavi Solutions’ historical EPS and Sales here>>>

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Zacks Recommendation Upgrades Atlanticus and Ecopetrol

Shares of Atlanticus Holdings Corporation ATLC and Ecopetrol S.A. EC have advanced 30.2% and 22.4% (versus the S&P 500’s 7.5% increase), respectively, since their Zacks Recommendation was upgraded to Outperform on April 20.

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 Lam Research, Virtu Financial Shoot Up

Shares of Lam Research Corporation LRCX, which belongs to the Zacks Focus List, have gained 70.4% over the past 12 weeks. The stock was added to the FocusList on December 5, 2016. Another Focus List holding, Virtu Financial, Inc. VIRT, which was added to the portfolio on July 31, 2023, has returned 51.5% over the past 12 weeks. The S&P 500 has advanced 15.2% 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 31, 2026, the portfolio’s rolling returns on a one-year, three-year, five-year, ten-year basis, 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 Monster Beverage and Novo Nordisk Surge

Monster Beverage Corporation MNST, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 24% over the past 12 weeks. Novo Nordisk A/S NVO has followed Monster Beverage with 18.2% 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 3M Company and Starbucks Outperform Peers

3M Company MMM, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 13.7% over the past 12 weeks. Another ECDP stock, Starbucks Corporation SBUX, has also climbed 8.8% 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 3M Company‘s dividend history here>>>

Check Starbucks' 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 -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 Carpenter Technology Delivers Solid Returns

Carpenter Technology Corporation CRS, from the Zacks Top 10 Stocks for 2026, has jumped 73.3% since the list was released on January 5, 2026, compared with the S&P 500 index’s 9.3% increase during this period.

The Top 10 portfolio retuned +19.72% in 2026 (through May 31) 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 31, 2026 vs. +13.7% for the S&P 500 index and +11.03% for the equal-weight version of the index.

Radical New Technology Could Hand Investors Huge Gains

Quantum Computing is the next technological revolution, and it could be even more advanced than AI.

While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.

Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .

Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.

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

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