Worries over the global economic outlook, along with volatile oil prices and commodities rout, have led investors to dump riskier stocks and scurry toward safe-haven assets, such as gold and government bonds.

While the U.S. economy with its moderate growth expectations amid the global mayhem offers an attractive investment opportunity, the global concerns have spread its tentacles in the U.S. growth outlook as well, keeping the domestic markets on tenterhooks.

This is evident from the slow pace of interest rate hikes adopted by the Federal Reserve. The Fed’s cautious stance was further reinforced by its Chairwoman Janet Yellen at a speech at the Economic Club of New York on Tuesday, which put an end to the hawkish tone of Fed officials that was rekindling the likelihood of a rate hike at the April meeting.

Factors like an improving labor market, lower unemployment rate, moderately expanding consumer spending and gradual recovery in the housing market increase the possibility of two rate hikes this year. However, weak manufacturing and net exports data, lackluster capital spending and business investment as well as continued bouts of global turbulence are enough to keep the Fed in check and justify a slower path for rate hikes.

The markets welcomed Yellen’s dovish note by reversing early losses with the S&P 500 index and the Dow industrials rising to their highest close of 2016. While S&P 500 returned to the positive territory for the year, the year-to-date returns of the index still stands at a mere 0.5%.

A Profitable Investment Strategy

While the majority of the stocks in the S&P 500 index are performing poorly, there are certain stocks that have proven their worth by successfully outperforming the index so far this year. Despite the global issues hitting stock markets badly, these stocks have managed to return more than 15% to investors, compared to the marginal increase in the S&P 500 index.

A solid price increase implies robust demand for the stock, which is often explained by either strong fundamentals or some positive news. And these may keep boosting the stock price. A company with strong fundamentals and future prospective growth can easily carry the momentum forward.

With the help of our new style score system, we have identified five stocks that have crushed the markets so far in 2016, hold excellent prospects and are well-positioned for future earnings growth as well.

All the stocks selected herein flaunt a solid Zacks Rank #1 (Strong Buy) or 2 (Buy) and have witnessed a relative price change (comparison of calendar year-to-date price change of a stock with the S&P 500) of more than 15, so far in 2016. Also, these stocks sport a positive projected EPS growth rate (F1/F0).

To top that, we applied our newest methodology — the VGM score, where V stands for Value, G for Growth and M for Momentum. The VGM score essentially highlights critical factors in a stock that have the potential to drive its price higher in the near term.

5 Gems in the S&P 500 Index

Pennsylvania-based Urban Outfitters Inc. (URBN - Analyst Report), a lifestyle specialty retail company, engages in the retail and wholesale of general consumer products. The company operates in two segments, Retail and Wholesale. The company is expected to drive growth on the back of new store openings, increase in direct penetration, growing wholesale operations, technology advancements and merchandising improvements.

Zacks Rank #2
Relative Price Change: 43.11
VGM Score: ‘A’
Projected EPS Growth (F1/F0): 11.73%

Michael Kors Holdings Limited (KORS - Analyst Report) engages in the design, marketing, distribution and retailing of branded women’s apparel and accessories and men’s apparel. This U.K.-based company operates in three segments: Retail, Wholesale, and Licensing. In an effort to drive its top line higher, the company is focusing on store expansion, upgrading its e-Commerce platform and enhancing its information system and distribution infrastructure.

Zacks Rank #2
Relative Price Change: 39.16
VGM Score: ‘A’
Projected EPS Growth (F1/F0): 3.34%

Headquartered in Arkansas, Tyson Foods, Inc. (TSN - Analyst Report) is the world's largest fully-integrated producer, processor and marketer of chicken and poultry-based food products. Tyson offers a wide array of meat products and enhances its portfolio through innovation and acquisitions. Its sales boosting initiatives and strong international presence is also appealing.

Zacks Rank #1
Relative Price Change: 25.92
VGM Score: ‘A’
Projected EPS Growth (F1/F0): 25.29%

Mattel, Inc. (MAT - Analyst Report) designs, manufactures and markets a broad variety of family products on a worldwide basis through both sales to retailers and direct to consumers. The California-based company is aggressively making efforts to improve its sales while managing its costs. The company is focusing to turn around the business that has been losing ground to electronic toys and tablets.

Zacks Rank #2
Relative Price Change: 19.53
VGM Score: ‘B’
Projected EPS Growth (F1/F0): 8.53%

Based in Tennessee, Dollar General Corporation (DG - Analyst Report) is one of the largest discount retailers in the United States. Dollar General’s commitment toward better price management, cost containment, effective inventory management, merchandise and operational initiatives is expected to drive sales and margin trends going forward.

Zacks Rank #2
Relative Price Change: 17.27
VGM Score: ‘A’
Projected EPS Growth (F1/F0): 15.03%