Back to top

Anatomy of Success

Stocks with a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) have significantly outperformed the market.

If you're just getting started, focus in on the newest top Zacks Ranked stocks.

And when possible, find the ones that have leapfrogged several Zacks Ranks to get into the coveted position of #1 or #2. Why? Because moving two full Ranks or more is a Herculean feat, and often indicates something special is taking place with that stock to go from a lowly sell to a sought after buy.

Cracker Barrel (CBRL - Snapshot Report)

On March 1, 2013, Cracker Barrel leapfrogged from a Zacks Rank #4 (Sell) to a Zacks Rank #2 (Buy).

We've always known there was something special about these newly-crowned Zacks Rank #1 and #2 stocks that jumped from a 'sell' to a 'buy' ranking in one fell swoop. And the returns prove it.

After earning its spot in the exclusive Zacks Rank #2 club, CBRL's price responded immediately. And its earnings estimate revisions began to aggressively move higher.

As CBRL racks up week after week of continuous upward revisions, the stock gains accelerate even more. Excitement builds as they move closer to their earnings announcement. And the market is clearly energized as it looks forward to an impressive number given the constant ratcheting up of estimates.

After positing what seems like an 'expected' EPS surprise (7.37% on 6/3/13), the stock jumps even more. And analysts quickly follow that up with even more upward earnings estimate revisions as they raise their forecast for the next quarter.

All in all, from the time CBRL became a Zacks Rank #2 (Buy), its earnings estimates increased 15 weeks in a row, while the stock price soared 28.75% vs. the S&P's 8.25% over a little more than just 3 months.

By focusing in on the best Zacks Rank stocks, you're giving yourself a great edge in beating the market.

With only 5% of the Zacks Rank universe able to earn a Zacks Rank #1, and only 15% of the universe able to earn a Zacks Rank #2, these stocks are put into an exclusive category.

But the ones that slingshot their way into the #1 and #2 spots belong to an even more exclusive group, as investors race to re-price the stock in the wake of aggressive upward earnings estimate revisions.

Click here to find more Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: http://www.zacks.com/performance.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOL… BITA 81.59 +4.97%
PLANAR SYST… PLNR 4.41 +4.50%
CHINA BIOLO… CBPO 47.65 +2.74%
COGNEX CP CGNX 44.12 +2.58%
GILEAD SCIE… GILD 104.85 +2.52%