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How to Use the Zacks Rank to Find Top Stocks

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  • (0:45) - Finding The Best Stocks For Your Portfolio
  • (4:30) - How To Navigate Zacks.com to Find The Right Investments For You
  • (15:45) - Tracey’s Top Stock Picks To Keep On Your Watchlist
  • (43:00) - Episode Roundup: VEEV, HWM, FTK
  •                 Podcast@Zacks.com

 

3 Takeaways

  1. The Zacks Rank is a short-term, 1-to-3-month, stock recommendation system.
  2. You can get free Strong Buy stocks in the daily Bull of the Day articles on Zacks.
  3. Tracey takes you through 3 Bulls of the Day: Veeva Systems, Howmet Aerospace and Flotek Industries.

 

Welcome to Episode #449 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.

This week, Tracey is going solo to share her secrets of the Zacks Rank. The Zacks Rank is a short-term stock recommendation of 1 to 3 months that is based on changes to analyst earnings estimates.

It is based on four factors: Agreement, Magnitude, Upside, Surprise.

Look at the Bull of the Day Stock Articles for Strong Buys

Where can you find the Zacks Rank, for free, on Zacks.com?

Every day the stock market is open, Zacks publishes a Bull of the Day on the main home page. This stock is almost exclusively a Zacks Rank #1 (Strong Buy), which is the top Zacks Rank.

On June 17, 2025, there were just 225 Zacks Rank Strong Buy stocks out of over 4,000 stocks. That makes it unique.

What Makes a Strong Buy Stock?

In order to get the top Zacks Rank of #1, the analysts have to be raising their earnings estimates on that company.

Often, this will occur after an earnings report where the company beats and raises its earnings guidance. The analysts will then raise their earnings estimates to get in line.

Having the top Rank usually indicates something “good” is likely going on at the company. The Strong Buys are the stocks traders and investors want to add to their short lists.

3 Bull of the Day Stocks for Your Short List

1. Veeva Systems Inc. (VEEV - Free Report) )

Veeva Systems is a cloud-based software company with a market cap of $46 billion. It’s a life sciences technology company.

In its fiscal 2026 first quarter results, Veeva Systems cited AI as boosting business. It beat and raised guidance.

Veeva Systems has averaged roughly 25% revenue growth over the last decade. It also has a stellar balance sheet with $6.1 billion in cash, zero debt and just $1.5 billion in liabilities.

Ten earnings estimates have been revised higher in the last 30 days for the full year, with none cut. Earnings are expected to rise 14.6% in fiscal 2026. Veeva Systems is a Zacks Rank #1 (Strong Buy) stock.

Should a Bull of the Day like Veeva Systems be on your short list?

2. Howmet Aerospace Inc. (HWM - Free Report)

Howmet Aerospace traces its history back to 1926 and is located in Pittsburgh. It has a market cap of $69.1 billion. Howmet Aerospace makes aircraft parts.

In its last earnings report, Howmet Aerospace raised full year earnings guidance to a range of $3.36 to $3.44 from $3.13 to $3.21. Not surprisingly, the analysts raised their earnings estimates.

Seven earnings estimates were revised higher in the last 60 days with one higher in the last 30 days. Earnings are expected to rise 28.6% in 2025. Shares of Howmet Aerospace are red hot this year, gaining 57.4%.

Should Howmet Aerospace, a Zacks #1 (Strong Buy) stock, be on your short list?

3. Flotek Industries, Inc. (FTK - Free Report)

Flotek Industries is a small cap company with a market cap of just $476 million. It’s in Zacks Oil and Gas-Field Services industry. Flotek Industries provides chemistry technologies and data analytics to clients across the energy and industrial sectors.

Just one estimate has been revised higher in the last 60 days, but none have been cut. Flotek Industries was a Zacks #1 Rank (Strong Buy) but has now dropped to a #2 (Buy) stock.

The Zacks Rank can change daily.

Earnings are expected to jump 56% in 2025. Shares of Flotek Industries are red-hot, gaining 56.4% this year.

Should Flotek Industries, now a #2 (Buy) stock, also be on your short list?

What Else Should You Know About How to Use the Zacks Rank to Find Top Stocks?

Tune into this week’s podcast to find out.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Veeva Systems Inc. (VEEV) - free report >>

Flotek Industries, Inc. (FTK) - free report >>

Howmet Aerospace Inc. (HWM) - free report >>

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