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Zacks Market Edge Highlights: Ichor Holdings, Oclaro, Amazon, Tencent and Applied Optoelectronics

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For Immediate Release

Chicago, IL – August 24, 2017 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. (Please use the Soundcloud link from this URL for the PR. Thanks: https://www.zacks.com/stock/news/272912/how-to-use-the-zacks-rank-to-pick-stocks)

How to Use the Zacks Rank to Pick Stocks

Welcome to Episode #95 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Sheraz Mian, Zacks Director of Research, to discuss the Zacks Rank.

Finally, after podcasting for nearly 2 years, Tracey is tackling the most basic of Zacks investing principles.

You might have seen the Zacks Rank mentioned in an investing article on Yahoo Finance or someone brought it up in a discussion on Stocktwits.

But what IS it exactly?

Definition of the Zacks Rank

The Zacks Rank is a short-term stock recommendation of 1 to 3 months which ranks stocks from #1, which is a “Strong Buy”, to #5, which is a “Strong Sell”.  

Zacks ranks about 4400 stocks daily using analyst earnings estimates.

Sheraz and Tracey discuss what goes into the Zacks Rank, how it works, and the pros and cons of using it.

If you’ve ever had questions about the Zacks Rank, then this is must-listen podcast.

Examples of Using the Zacks Rank

1.       In the summer of 2017, Ichor Holdings (NASDAQ:(ICHR - Free Report) – Free Report) went from a Zacks #1 (Strong Buy) and sank quickly to a Zacks #4 (Sell), moved to a #3 (Hold) and is now a #1 (Strong Buy) again. How can a stock go from a #1 to a #4 the next day?

2.       Oclaro (NASDAQ: – Free Report) was a #3 (Hold) for a couple of months until it dropped to a #4 (Sell) in August. Why the drop and what are the estimates telling us?

3.       Amazon (NASDAQ:(AMZN - Free Report) – Free Report) has been a #5 (Strong Sell) several times this year. How can it be a Strong Sell when the stock has been moving higher?

4.       Tencent (OTCMKTS:(TCEHY - Free Report) – Free Report) is both a foreign stock, as it’s a Chinese Internet and social media company, and it only has one analyst estimate on Zacks.com. Sheraz discusses the quirks of the Zacks Rank and what happens when there are only a few estimates in the data.

5.       Applied Optoelectronics (NASDAQ:(AAOI - Free Report) – Free Report) is a Zacks Rank #1 (Strong Buy) but the shares are off 36% in the last month on worries about the transition from 40G to 100G. For 2017, 2 estimates have been raised and 2 have been cut in the last 30 days. However, the consensus has risen. The Zacks Rank is based on the analyst estimates. What happens if they don’t get it right?

Every trading system has its quirks. Zacks is open about what works, and what doesn’t, with the Zacks Rank.

What else should you know about the Zacks Rank and using it to find stocks?

Tune into this week’s podcast to find out.

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About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time!  Click here for your free subscription to Profit from the Pros.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.