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Zacks Investment Research is one of the most highly regarded firms in the investment industry. The guiding principle behind our work is that there must be a good reason for brokerage firms to spend billions of dollars a year on stock research. Obviously, these investment experts know something special that may be indicative of the future direction of stock prices. From day one, we were determined to unlock that secret knowledge and make it available to our clients to help them improve their investment results.
In 1978 our founder, Len Zacks, made a breakthrough. Armed with his PhD from MIT, Len discovered that:
Earnings estimate revisions are the most powerful force impacting stock prices
From there he developed a quantitative model to harness the power of earnings estimate revisions - the direction, the degree of change, and surprises - along with other important variables to create the Zacks Rank.
This unique and innovative rating system predicted the potential for future stock price increases. In fact, it proved itself as a system that clearly stated when to buy, sell, and hold stocks. And it was very unusual in that it provided an equal number of buys and sells. Unheard of in the days when all Wall Street could say was "Buy".
Zacks Rank is completely mathematical. It's cold. It's objective. The Zacks Rank does not care what the hype on the street says. Or how many times the CEO appeared on TV. Or how this company could some day, maybe, if everything works perfectly, and the stars are aligned become the next Microsoft. The Zack Rank only cares about the math and whether the math predicts that the price will rise.
Needless to say, leading firms in the investment industry wanted to use this rating tool as part of their decision making process. And Zacks Investment Research became one of Wall Street's most respected firms.
Today, Wall Street continues to use Zacks research including the Zacks Rank and Zacks Equity Research, which combines the best of quantitative and qualitative analysis. This same professional strength research is now available to individual investors on our web site, Zacks.com, and through our other services.
To learn more about the Zacks Rank, visit our Zacks Rank Education section.
For more on Zacks' services for individual investors, visit the Zacks Services page.
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Disclosure:
The performance of the Zacks Rank portfolios for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from January 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The portfolios created monthly from 1988 through September 2006 exclude ADRs and are comprised of stocks that have the indicated Zacks Rank and were covered by at least two analysts at the time of the stocks inclusion in the portfolio. Starting in October 2006 and going forward, the portfolios are comprised of all stocks with the indicated Zacks Rank and do not exclude ADRs, which is more reflective of the list of stocks that customers will find on the Zacks web sites. These performance numbers have been audited from 1995 through 2003 by Virchow, Krause & Company, LLP. Performance information for other Zacks portfolios and strategies is available at http://www.zacks.com/performance.
Annualized returns are for Jan 1, 1988 through Dec 31, 2007. Comparable annualized returns for the S&P 500 are 11.66%. |
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