March 23, 2026 — Investment research firm Zacks Investment Research has reported that several of its proprietary stock rating portfolios have significantly outperformed the broader market during a period of recent volatility. The firm highlighted gains in stocks like LiveOne, Micron Technology, and The Clorox Company across its different analytical systems.
Market Context and Zacks Methodology
Major U.S. stock indexes recently registered their fourth consecutive week of losses. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all declined. Market analysts attributed the downturn to persistent inflation concerns, expectations for sustained higher interest rates, and rising Treasury yields, which pressured growth-oriented stocks. Geopolitical tensions also contributed to investor caution and increased market volatility.
Zacks states its investment guidance is based on time-tested quantitative methodologies, primarily focused on trends in earnings estimate revisions. The firm offers several stock rating systems, including the short-term Zacks Rank and the longer-term Zacks Recommendation.
Short-Term Rank Upgrades Deliver Gains
According to data from Zacks, stocks receiving upgrades to its highest short-term ratings have seen strong performance. Shares of LiveOne, Inc. (LVO) gained 27.9% after being upgraded to a Zacks Rank #2 (Buy) on January 19. This occurred while the S&P 500 fell 6.2% over the same period.
Teekay Tankers Ltd. (TNK), upgraded to a Zacks Rank #1 (Strong Buy) on January 23, returned 10.9%. An equal-weight portfolio of Zacks Rank #1 stocks reportedly outperformed the equal-weight S&P 500 index by 7.7 percentage points for the year-to-date period through early March.
Focus List and Long-Term Recommendations
The Zacks Focus List, a portfolio of 50 stocks, also showed resilience. Holdings like Micron Technology, Inc. (MU) and Intellia Therapeutics, Inc. (NTLA) gained 53.1% and 36.3%, respectively, over a recent 12-week period where the S&P 500 declined. The entire Focus List portfolio returned 6.65% for the year through February 28, compared to a 0.68% gain for the S&P 500.
For longer-term holdings, the Zacks Recommendation system highlighted upgrades for TechnipFMC plc (FTI) and Kubota Corporation (KUBTY). Shares of TechnipFMC surged 20.9% after its recommendation was upgraded to Outperform on January 23.
Defensive and Dividend Portfolios
In more defensive strategies, components of the Zacks Earnings Certain Admiral Portfolio (ECAP), such as The Hershey Company (HSY) and The Clorox Company (CLX), posted gains of 15.1% and 9% over the past 12 weeks. This portfolio is designed to hold companies with stable earnings streams over economic cycles.
Similarly, the Earnings Certain Dividend Portfolio (ECDP), which includes Starbucks Corporation (SBUX) and The Coca-Cola Company (KO), saw those stocks return 10.4% and 7%, respectively, over the same timeframe. Zacks attributes this performance to investor demand for reliable income during market uncertainty.
Performance Data and Access
Zacks provides extensive historical performance data for its model portfolios on its research platform. The firm’s Top 10 Stocks portfolio for 2025, which included Monolithic Power Systems, Inc. (MPWR), returned 10.5% through February 28, compared to a 0.5% gain for the S&P 500.
Access to the Zacks Rank list, Focus List, Equity Research Reports, and model portfolios is available through the firm’s premium subscription services. The research is based on quantitative analysis of earnings estimate revisions, though analysts can provide overrides for approximately 1,100 closely followed stocks.
Investors can find more information on Zacks’ methodologies and current stock lists through the firm’s official website at Zacks Investment Research. Market data used in the analysis is sourced from standard financial exchanges and the firm’s proprietary databases.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
