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Zacks Investment Ideas feature highlights: UBS Group
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For Immediate Release
Chicago, IL – February 16, 2023 – Today, Zacks Investment Ideas feature highlights UBS Group AG (UBS - Free Report) .
How to Identify Stocks with the Best Profit Potential
Zacks Investment Research employs several proprietary methodologies and techniques to make it easier for investors to detect top stocks at any given point in time. Let's take a look at a recent example of how to put the various Zacks Ranking systems to good use in today's market environment.
One approach to extracting the most value out of what Zacks has to offer is to implement a top-down approach. With this investment tactic, we'll start with leading stock market industry groups that are identified by our Zacks Industry Rank system.
Zacks Industry Rank: Improve Your Stock-Picking Success
A plethora of historical research studies have consistently shown that approximately half of a stock's price appreciation is due to its industry grouping. Investing in stocks within leading industry groups provides a constant 'tailwind' to our success. We can use the Zacks Industry Rank to locate stocks with the most potential to outperform in the future.
Our industry ranking system sorts companies into more than 250 industry groups. The Zacks Industry Rank is calculated by averaging the Zacks Rank for all individual stocks within a specific industry. A recent 10-year backtest has shown that stocks within the top 50% of all Zacks Ranked Industries outperformed the bottom half by a factor of more than 2 to 1.
Once the top industry groups are identified, we can peel back the curtain to find stocks with the highest Zacks Rank. In our example, we're going to target the Zacks Banks-Foreign industry group which ranks in the top 4% of all industries.
Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months. By focusing on top stocks within leading industry groups, we can dramatically improve our odds of success.
Zacks Rank: Locate Stocks with the Best Profit Potential
The Zacks Industry Rank is linked to our ranking system for individual stocks – the Zacks Rank. The Zacks Rank harnesses the power of earnings estimate revisions, which history has shown is the most powerful force impacting stock prices over time. Stocks with rising earnings estimate revisions have significantly outperformed the S&P 500 year after year. This ranking system uses five different ranks: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell), and #5 (Strong Sell).
The Zacks Rank has made the process of identifying top stocks with improving earnings estimates simple (and very profitable). Since 1988, Zacks Rank #1 (Strong Buy) stocks have generated a 24.28% annual return versus the 10.51% annual return for the S&P 500. Zacks Strong Buy stocks have also outperformed the S&P 500 in 26 out of the last 31 years that we have been tracking the data. Only the top 5% of stocks receive the coveted Zacks Rank #1 (Strong Buy) rating.
Our top-down process narrows the investable universe, starting with the Zacks Banks-Foreign industry (top 4%). Let's take a look at a leading Zacks Rank #1 (Strong Buy stock) contained within this top industry.
UBS Group AG
UBS Group AG provides financial advice and solutions to institutional, corporate, and private clients globally. The company offers a host of financial-related services such as personal banking, investment advice and solutions, lending, wealth planning, asset allocation, and investment banking. UBS was founded in 1862 and is headquartered in Zurich, Switzerland.
UBS has surpassed earnings estimates in three of the past four quarters, with an average earnings surprise of 16.6%. The financial firm most recently reported fourth-quarter earnings back in January of $0.50/share, beating the Zacks Consensus Estimate of $0.37 by 35.14%. The company's strong capital position and efficiency initiatives will likely continue to aid profitability.
Shares have risen in stride, advancing more than 55% off the October bottom and recently hitting a 52-week high.
UBS is a Zacks Rank #1 (Strong Buy) that has witnessed improving earnings estimate revisions. Looking into the current year, analysts have raised their 2023 EPS estimates by 5.85% in the past 60 days. The Zacks Consensus Estimate now stands at $2.17/share.
Employing a top-down approach utilizing the various Zacks Ranking systems can help investors find leading stocks like UBS more easily. As we move further into 2023, be sure to take advantage of all that Zacks has to offer.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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.
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Zacks Investment Ideas feature highlights: UBS Group
For Immediate Release
Chicago, IL – February 16, 2023 – Today, Zacks Investment Ideas feature highlights UBS Group AG (UBS - Free Report) .
How to Identify Stocks with the Best Profit Potential
Zacks Investment Research employs several proprietary methodologies and techniques to make it easier for investors to detect top stocks at any given point in time. Let's take a look at a recent example of how to put the various Zacks Ranking systems to good use in today's market environment.
One approach to extracting the most value out of what Zacks has to offer is to implement a top-down approach. With this investment tactic, we'll start with leading stock market industry groups that are identified by our Zacks Industry Rank system.
Zacks Industry Rank: Improve Your Stock-Picking Success
A plethora of historical research studies have consistently shown that approximately half of a stock's price appreciation is due to its industry grouping. Investing in stocks within leading industry groups provides a constant 'tailwind' to our success. We can use the Zacks Industry Rank to locate stocks with the most potential to outperform in the future.
Our industry ranking system sorts companies into more than 250 industry groups. The Zacks Industry Rank is calculated by averaging the Zacks Rank for all individual stocks within a specific industry. A recent 10-year backtest has shown that stocks within the top 50% of all Zacks Ranked Industries outperformed the bottom half by a factor of more than 2 to 1.
Once the top industry groups are identified, we can peel back the curtain to find stocks with the highest Zacks Rank. In our example, we're going to target the Zacks Banks-Foreign industry group which ranks in the top 4% of all industries.
Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months. By focusing on top stocks within leading industry groups, we can dramatically improve our odds of success.
Zacks Rank: Locate Stocks with the Best Profit Potential
The Zacks Industry Rank is linked to our ranking system for individual stocks – the Zacks Rank. The Zacks Rank harnesses the power of earnings estimate revisions, which history has shown is the most powerful force impacting stock prices over time. Stocks with rising earnings estimate revisions have significantly outperformed the S&P 500 year after year. This ranking system uses five different ranks: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell), and #5 (Strong Sell).
The Zacks Rank has made the process of identifying top stocks with improving earnings estimates simple (and very profitable). Since 1988, Zacks Rank #1 (Strong Buy) stocks have generated a 24.28% annual return versus the 10.51% annual return for the S&P 500. Zacks Strong Buy stocks have also outperformed the S&P 500 in 26 out of the last 31 years that we have been tracking the data. Only the top 5% of stocks receive the coveted Zacks Rank #1 (Strong Buy) rating.
Our top-down process narrows the investable universe, starting with the Zacks Banks-Foreign industry (top 4%). Let's take a look at a leading Zacks Rank #1 (Strong Buy stock) contained within this top industry.
UBS Group AG
UBS Group AG provides financial advice and solutions to institutional, corporate, and private clients globally. The company offers a host of financial-related services such as personal banking, investment advice and solutions, lending, wealth planning, asset allocation, and investment banking. UBS was founded in 1862 and is headquartered in Zurich, Switzerland.
UBS has surpassed earnings estimates in three of the past four quarters, with an average earnings surprise of 16.6%. The financial firm most recently reported fourth-quarter earnings back in January of $0.50/share, beating the Zacks Consensus Estimate of $0.37 by 35.14%. The company's strong capital position and efficiency initiatives will likely continue to aid profitability.
Shares have risen in stride, advancing more than 55% off the October bottom and recently hitting a 52-week high.
UBS is a Zacks Rank #1 (Strong Buy) that has witnessed improving earnings estimate revisions. Looking into the current year, analysts have raised their 2023 EPS estimates by 5.85% in the past 60 days. The Zacks Consensus Estimate now stands at $2.17/share.
Employing a top-down approach utilizing the various Zacks Ranking systems can help investors find leading stocks like UBS more easily. As we move further into 2023, be sure to take advantage of all that Zacks has to offer.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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.