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Following a better-than-expected Consumer Price Index (CPI) print, the market reacted accordingly, with green widespread in yesterday’s trading session. Still, inflation remains too high for the Fed’s liking, but the better-than-expected print gives hope that peak inflation is behind us.

While the market charges ahead on the news, there are several currently top-ranked stocks that have been quietly crushing the market over the last month, including JPMorgan Chase & Co. (JPM - Free Report), AT&T (T - Free Report), and Caterpillar (CAT - Free Report). The chart below illustrates the one-month performance of all three stocks, with the S&P 500 blended in as a benchmark.

Image Source: Zacks Investment Research

As we can see, all three stocks are up at least 25% over the last month, indicating that buyers have been busy. And all three pay a handsome dividend, undoubtedly a major positive. Let’s take a deeper dive into how each company stacks up.

Caterpillar

Caterpillar is the world’s largest construction-equipment manufacturer. The company designs, develops, engineers, manufactures, markets, and sells machinery, engines, financial products, and insurance to customers.

CAT’s earnings outlook has turned visibly bright over the last several months, helping land the stock into a Zacks Rank #2 (Buy).

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The company posted a strong quarter in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 20% and surpassing revenue expectations by roughly 4.5%. Below is a chart illustrating the company’s revenue on a quarterly basis.

Image Source: Zacks Investment Research

For the cherry on top, Caterpillar is a Dividend Aristocrat, showing a commendable commitment to shareholders through 25+ years of increased dividend payouts. CAT’s annual dividend yield currently sits at 2.1%, nicely above its Zacks Industrial Products sector average.

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JPMorgan Chase & Co.

JPMorgan Chase & Co. is one of the largest financial service firms in the world, organizing its business through five reportable segments. JPM sports a favorable Zacks Rank #2 (Buy). Analysts have upped their earnings outlook across the board over the last several months.

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JPM’s annual dividend yield currently comes in at 2.9%, paired with a solid 13.1% five-year annualized dividend growth rate and a sustainable payout ratio of 34% of earnings. As we can see, the yield is modestly higher than its Zacks Finance sector average.

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Shares embarked on an upwards trajectory following its latest print, where JPM exceeded earnings estimates by more than 5% and revenue expectations by 1.2%.

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AT&T

AT&T is North America's second-largest wireless service provider and one of the world’s leading communications service carriers. Like the companies above, analysts have taken a bullish stance on AT&T’s near-term earnings outlook, helping push the stock into a favorable Zacks Rank #2 (Buy).

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AT&T’s valuation multiples aren’t stretched; its 7.1X forward earnings multiple is beneath its 9.1X five-year median and represents a 62% discount relative to its Zacks Computer and Technology sector. The company sports a Style Score of an A for Value.

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T has long been a favorite among income-focused investors, and its dividend metrics make it easy to see why; AT&T’s annual dividend currently sits at a steep 5.9%, notably above its Zacks sector average.

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Bottom Line

Investors let out a big sigh of relief following the better-than-expected CPI print, giving stocks the boost they desperately needed. Of course, it’s worth noting that inflation is still well above the Fed’s target, with the tightening expected to continue, but perhaps at a slower pace. Further, the positive CPI release could indicate that peak inflation is in the rearview, undoubtedly what investors want to see.

While the market charges ahead, all three stocks above – JPMorgan Chase & Co. (JPM - Free Report), AT&T (T - Free Report), and Caterpillar (CAT - Free Report) – joined the party early, seeing their shares soar over the last month and indicating that buyers have been settled in for some time.

Further, all three carry a favorable Zacks Rank, telling us their near-term earnings outlook is bright. And for the cherry on top, all three pay their investors handsomely.

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