In 1978, our Founder and CEO, Len Zacks, made the groundbreaking discovery that earnings estimate revisions are the most powerful force impacting stock prices. This idea developed into our proprietary rating system, the Zacks Rank.
Unlike rankings based on past performance, the Zacks Rank predicts future price movement. Over the last three decades, our #1 ranked stocks have delivered an annualized return of approximately 25%. That’s more than double the S&P 500’s 11% return in the same period.
Today, the Zacks Rank is built into almost everything we do, including Zacks Advisor Tools— our platform that streamlines and scales security selection with proven quantitative models.
The Zacks Rank classifies securities into five groups from #1 (Strong Buy) to #5 (Strong Sell). This short-term rating system is most effective over the one- to three-month holding horizon.
The best way to incorporate the Zacks Rank into your process is in Advisor Tools, where you can quickly identify Zacks #5 Rank holdings in your Book of Business, then use the extensive data and research to find a #1 Rank replacement.
The Zacks Mutual Fund Rank is our forward-looking rating system evaluates forecasts future price performance and the likely future success of the fund by analyzing multiple factors that influence a fund’s future potential.
The Zacks ETF Rank helps you find cost-effective, passive ETFs to build stronger portfolios. Each passive ETF gets a score using our ranking system that considers both the outlook of the underlying industry and asset class, as well as specific attributes of an ETF.