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: https://www.zacks.com/performance.
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