Philosophy
Breadth of Coverage
Our Recommendations
Performance
What is the Difference Between the Zacks Recommendation and Zacks Rank?
Company Research Reports
Philosophy
Our firm has long believed that that quantitative models (like the Zacks Rank) can predict stock prices more accurately than individual analysts. However we also recognize that models are most effective when they are employed by analysts who have deep fundamental knowledge of the company and its industry. Consequently Zacks Equity Research combines Zacks quantitative models with the insight provided by experienced equity analysts to create superior long term stock recommendations.
Breadth of Coverage
Our staff of 50 junior and senior analysts provides continuous coverage for a universe of 1,150 US and Canadian traded companies and NYSE traded ADRs. Our universe includes approximately 52% of the S&P 500, and is evenly weighted across the three market caps, comprised of roughly 34% Large Cap, 32% Mid Cap, and 34% Small Cap. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance.
Our Recommendations
Zacks Equity Analysts issue recommendations and target prices for each company in their coverage universe based on a 6 month time horizon.
Buy Recommendations: We expect these stocks to outperform the broad market indexes over the next 6 months.
Hold Recommendations: We expect these stocks to perform in-line with the broad market indexes over the next 6 months.
Sell recommendations: We expect these stocks to under-perform the broad market indexes over the next 6 months.
Performance
The best way to judge the value of our recommendations is through their performance. On the following page we provide you insight into the performance of both our Buy and Sell recommendations versus the S&P 500. We also break it down our recommendations by industry to show our expertise in each field. View Zacks Equity Research Performance.
What is the Difference Between the Zacks Recommendation and Zacks Rank?
This is the most frequently asked question about Zacks Equity Research. This can explained on a couple of levels.
1) What is the Purpose of Each Rating?
The Zacks Rank is a short term indicator of stock performance that is effective for 1 to 3 months.
The Zacks Recommendation is meant to be a longer term rating of 6+ months.
Which is more valuable? They are both excellent predictors of future performance. Use the one that best fits your investment time horizon.
2) How are they created?
The Zacks Rank is a 100% quantitative model based on 4 factors such as earnings estimate revisions and earnings surprises. (Learn more about the Zacks Rank in our free guide: The Billion Dollar Secret).
The Zacks Recommendation process starts with a new quantitative model that employs the Zacks Rank. Then our Equity Analysts overlay their own qualitative insights to create a unique recommendation based on a 6 month time horizon.
Company Research Reports
Valuable Commentary: All reports include current and prior recommendations, a six month price target, and a company outlook, all written by our analysts. The Hold recommendation reports also contain the Bull and a Bear story, offering additional insights on whether to own or sell the security.
Proprietary Content: In addition to the commentary, all estimates data and price targets are set by the analysts, not consensus information. Analysts also provide their own valuation, as well as projected income statement and balance sheet for each security.
Full access to Zacks Equity Research reports is only available with a subscription to Zacks Elite. Full Access includes:
Performance information for other Zacks’ portfolios and strategies is available at: http://www.zacks.com/performance
Copyright ©2010 ZACKS Investment Research, Inc ("ZACKS"). All Rights Reserved. The information, data, analyses and opinions contained herein (1) includes confidential and proprietary information licensed from ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. Investments in equities and other instruments are not guaranteed by any bank, are not insured by FDIC or any other agency, and involve investment risks, including possible loss of the principal involved.
One or more investment advisory accounts for which Zacks Investment Management acts as an investment advisor may own or have sold short securities and/or hold long and/or short positions in options reviewed in this publication, prior to the publication of such positions. Officers, directors and/or employees of Zacks Investment Management may own or have sold short securities and/or hold long and/or short positions in options reviewed in this publication.
Zacks Elite contains opinions, and none of the information contained therein constitutes a recommendation by Zacks Investment Research that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You further understand that the Zacks Elite will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. None of the information contained in the Zacks Elite may be deemed to be investment advice as such information is impersonal and not tailored to the investment needs of any specific person. PLEASE DO NOT EMAIL Zacks Elite, Zacks Investment Research, or a Zacks Elite Representative for PERSONALIZED INVESTMENT ADVICE, WHICH THEY CANNOT PROVIDE.
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