Whenever there's a research development concerning the Zacks Rank, it's worth taking notice.
After all, this stock rating system has proven to be one of the most powerful predictive tools in the investment world.
For example, if you only invested in Zacks Rank #1 stocks from 1988 through 2015, you would have averaged a net gain of +26% per year. This stellar performance has held up despite three devastating recessions and many unnerving corrections.
The individual stock returns that led to it were examined and attested by Baker Tilly Virchow Krause, LLP,* an independent accounting firm.
So +26% per year is not exactly a secret.
But Today There Is a Zacks Rank Enhancement that Very Few People Know About.
My name is Kevin Cook, Senior Stock Strategist at Zacks, and I bring news of a development that can have a very positive and substantial effect on your stock portfolio whether the market goes up or down.
It resolves a drawback of the Zacks Rank:
At any given time, there are 220 "Strong Buy" and 660 "Buy" recommendations. That is quite a large number of stocks to choose from.
Our research development filters down this imposing list to a handful of selected stocks that you can get your arms around. It applies our proprietary blend of technical indicators for price, volume, and timing to recommend only about 8 to 12 trades at any given time.
We call this development TAZR, Technical Analysis + Zacks Rank.
For selecting stocks, it combines the best of both worlds. While most investors rely on technical analysis OR fundamental metrics, TAZR puts both of these successful approaches to work for you.
More Timeliness and Profit Potential Than TA or ZR Can Achieve Separately
This combination infuses buy/sell decisions with the WHY, the WHEN, and the EXACTLY WHEN.
- 1. WHY own a company? There isn't a better reason than what the Zacks Rank focuses upon. It takes advantage of the most powerful force impacting stock prices: Earnings Estimate Revisions.
- 2. WHEN should you buy and sell a company? The Zacks Rank and other key fundamental indicators help answer that question, too.
- 3. EXACTLY WHEN should you make those moves? That's where our new blending of technical price-action indicators comes in.
We're looking to catch good companies at the point when they are significantly underbought and maybe unrecognized. Then sell them after their prices surge and begin to subside. That can take only a few weeks, although we are prepared to ride them further if they remain undervalued without good reason.
Now this TAZR approach isn't foolproof, but I have had considerable success using very similar strategies and techniques in my previous trading experiences1:
AMN Healthcare, a leader and innovator in healthcare staffing, was a Zacks Rank #1 "Strong Buy." It had shown signs of an uptrend but then dipped under circumstances that I was convinced were irrational. I bought it for 29.75 on 11/4/16 just as it was rebounding. When sold at 39.20 on 12/23/16, it had jumped +31.8% in 7 weeks.
Ambarella supplies semiconductors for cameras, camcorders, mobile phones, and many other applications. This hot small cap had been badly beaten down but had risen to a Zacks Rank #1 when I bought at 57.44 in 7/18/16. I sold near the top of its ascent at 70.54 on 8/29/16, gaining +22.8% in 6 weeks.
We can also profit from swing trades when technical signals and the Zacks Rank tell us when to buy and sell the right company. The chart below shows how I traded Broadcom Limited, a $60 billion diversified global semi-conductor leader from July, 2014 to June, 2016.
As you can see, 8 of the 9 trades were winners, which amounted to an aggregate gain of +119.2%. These moves were short to medium-term and provided less risk because I always bought when Broadcom was a Zacks Rank #1 and kept a close eye on the charts.
How are results like these achieved?
I can't disclose the full details of our formula: but not for exactly the same reasons as Coca Cola or Kentucky Fried Chicken. Instead, our purpose is to make sure too many customers DON'T use the product. We don't want too many investors to jump the recommendations, driving up the prices before most of our members can fully profit.
But I can give you a peek into the process so you can see how it adds accuracy and timeliness to the Zacks Rank.
The Best Fundamental Indicator
As I suggested, our quest starts by setting the table with 880 stocks that are Zacks Rank "Buys" and "Strong Buys."
Then we probe more deeply, looking for companies that are undervalued, with low P/E ratios, and cheaper relative to peers.
Plus Our Proprietary Price-and-Volume Technical Analysis
Here's a glimpse at how we attack the technicals:
- Target stocks that are generating price momentum. They must be priced above their 200-day moving averages. And, preferably, their 50-day moving averages are crossing above those 200-day averages.
- Look for reversals from stocks that had been recently beaten down. We want companies that are already gaining steam in a long-term trend, but have experienced a temporary downturn or weakness and have just STARTED to reverse.
- Track stocks with expanding volume. This is evidence of strong interest from big institutions that move stock prices.
- Identify continuation patterns. The charts can get you in front of breakout rallies if you know what to look for.
And let me emphasize that this strategy can detect stocks on the way down as well as on the way up. So we can go short when an outstanding opportunity turns up. But my guess is that you will find these aspects of TAZR most appealing:
Many Timely Gains
The concept is to get in and out. Then fold over your investment to catch the next burst, and let the power of compounded gains go to work for your portfolio.
Minimal Downside Risk
Constant technical monitoring, pinpoint buy/sell timing, trailing stops, and 1-3 month holding periods provide a greater safety net than if you followed the Zacks Rank alone.
More Good News
You can take advantage of those quick gains at reduced risk without becoming a technical analyst yourself. I'll do the work for you, checking the technical charts and monitoring company fundamentals.
All you have to do is open my emails and see our buy/sell recommendations and clear explanations for why we are making them.
Plus, although I share investment insights with followers through CNBC, Fox Business, Wall Street Journal Radio, Bloomberg, and other media channels, my timeliest TAZR moves and market commentary will be reserved for members only.
What's the Cost for This?
Here's what might be the most remarkable fact of all:
1. You can order 12 months of TAZR alerts with buy/sell recommendations and detailed market commentary for just $995 here. Quite a bargain at that price.
2. Or you can enjoy a bargain that is almost unthinkable. Take advantage of our unique Zacks Ultimate arrangement and follow TAZR for 30 days while also enjoying 30-day access to ALL of our other private Zacks services and strategies. Just one low token price - a grand total of $1 for everything.
Let's take a look at how Zacks Ultimate offers you so much for so little:
- All Zacks Buys and Sells (including TAZR)
- One Month.
- One Dollar.
- Not One Cent of Further Obligation.
What's the catch? There really isn't one. We offer this arrangement to you because Zacks Ultimate serves as a showroom where you can look inside any or all of our high-performance portfolios. Then you may join the ones that suit you best. Or join none of them. The choice is up to you.
Let me make a suggestion: Go ahead and explore the TAZR plus all of our other active trading and long-term investing portfolios packed inside Zacks Ultimate. Here is a list of services available to you for the next 30 days:
Zacks Ultimate gives you full access to TAZR and all of our most valuable services:
|Black Box Trader||$1495/yr||Included|
|Home Run Investor||$299/yr||Included|
|Reitmeister Trading Alert||$995/yr||Included|
|Stocks Under $10||$299/yr||Included|
|Zacks Top 10 Stocks||$99/yr||Included|
Your Cost for 30 Days $1
Yes It's Only $1
You might sample our coveted surprise stocks and insider trades (the legal kind). Or check our value picks and stocks under $10. Or see the recommendations of Zacks.com chief Steve Reitmeister just before he puts his own money into them. No matter what kind of investor you are, there are timely buy and sell recommendations to help you make more money in the market.
Will this be hard work? Will it be too much information? Not at all. During the next 30 days you can focus on the TAZR picks and commentary while browsing the others, test-driving whatever captures your interest. And then, after your $1 for 1 month trial, you have three simple choices:
- 1. Walk out of the showroom anytime you please and not pay one cent more.
- 2. Continue your see-it-all Zacks Ultimate subscription for only $299 a month.
- 3. Join just one or more of the individual portfolios.
Once again, the choice is entirely up to you.
Backed by 2 Airtight Guarantees
Don't worry, you are covered by a Satisfaction Guarantee. You may cancel up to 90 days after your trial is over. And if you feel we have not exceeded your expectations, then we will refund every last cent - including the $1 you paid for the trial. No problem.
But that isn't the half of it.
You're also backed by a full-year, money-back Performance Guarantee. Details. That means if we don't help you beat the market, we don't deserve your money.
No one else offers a combination of money-back assurances like these. That's because no one else has a proven system like the Zacks Rank that beats the market so consistently, year after year.
TAZR is Closesed to New Investors
Important: TAZR Closes to New Investors Sunday, January 22.
- Daily Buy/Sell/Hold Email Alerts
- Market commentary and reports on tickers in portfolio
- 8-12 selected buys at any given time.
- Typical holding period: 1-3 months.
Don't miss this brief window of opportunity to jump aboard, and also to sample all of Zacks' other services at so little cost and at no further obligation.
Call toll-free at 1.888.775.8348, M-F, 10 am to 6 pm. ET. Outside the U.S., phone 1.312.265.9309.
Or, Simpler still, get started online »
We Can't Allow Too Many Investors to Share TAZR Recommendations.
Remember, we want to make it as convenient as possible for members to profit from these select stocks, so the opportunity to access our TAZR buy/sell signals will be limited.
Are you looking for even better timeliness and win ratio from the Zacks Rank at even less risk? If so, I look forward to welcoming you to our TAZR Trader, and giving you the opportunity to sample other Zacks services as well.
Thank you for your time and attention. I plan to make it worth your while during the next 30 days, and for many years to come.
Senior Stock Strategist
Zacks Investment Research