Time Your Decisions with the Zacks Rank

Discover a proven tool for short-term stock picking and trading.

Use our leading quantitative model to aid in your timing decisions. The Zacks Rank divides securities into five groups from #1 (Strong Buy) to #5 (Strong Sell). Unlike many ranking systems that use past performance, the Zacks Rank is a predictive model that seeks to forecast future performance using earnings estimate revisions.

Download our FREE guide.

By checking this box, I read and agree to the Privacy Policy & Terms of Use. By checking this box, I consent for Zacks and affiliates/agents to call or text me for any purpose at any number provided, included via automated telephone dialing system or prerecorded voice, and such consent is not required to purchase goods or services as I may always call directly at 1-866-794-6065.

How to use the Zacks Rank for
effective stock timing and trading.

The optimal time horizons for the Zacks Rank forecasts are 1-3 months. For this reason, many financial advisors use the Zacks Rank as a timing tool rather than a method of picking long term outperformers.

The Zacks Rank is ideal:

  • As one component in multi-factor models
  • To screen for new purchase candidates
  • As a tiebreaker among equally attractive stocks
  • As a tiebreaker among stocks in an industry group
  • For use with clients who are active traders

Numbers tell the story:

Zacks Rank has consistently produced excess returns.

23.7%

Over the past 36 years, Zacks Rank #1 stocks had an annualized return of 23.7%, compared to a 11.0% return for the S&P 5001

33%

In the two years since Covid began, Zacks #1 ranked stocks outperformed the S&P 500 by more than 33%

36-Year Zacks Rank Performance1

The Zacks Rank #1 stocks have consistently produced excess returns for the past 36 years.

During those 36 years, they had an Annualized Return of 23.7%.

During that same period, the S&P 500 had a 11.0% return while the return for the equally weighted S&P 500 was 10.4%

Covid/Post-Covid Zacks Rank Performance

Between March 2020 and February 2022, Zacks #1 Ranked stocks had a cumulative 86.1% return, compared to the cumulative return of 52.8% for the S&P 500 during the same time period.

Improve client portfolio performance with the Zacks Rank.

The Zacks Rank can be used in Advisor Tools as an effective and efficient way to automate routine portfolio maintenance, improve performance, and remove possible "landmine" holdings.

Watch our video to learn more

Advisor Tools Gives You Full Access to Zacks Independent Research.

Our research is top-ranked in the industry:2

  • Analyst-written equity research for 1,100 major U.S. companies and ADRs
  • Zacks Snapshot and quant-based research reports for 3,600 companies
  • Zacks Rank of 4,000 companies for short-term stock picking
  • Zacks Recommendation for long-term investors
  • Predictive Zacks Mutual Fund Rank for 6,000 companies
  • Analyst-written reports for 500 ETFs plus an additional 1,500 quant ETF reports

© Zacks Professional Services

10 S Riverside Plaza, Suite 1600
Chicago, IL 60606

Privacy Policy

1 These returns are from hypothetical portfolios consisting of stocks with Zacks Indicator Model scores that were rebalanced monthly through 12/31/13 and weekly since that time with zero transaction costs. These are not the returns of actual portfolios of stocks. Monthly returns use month-end closing prices (plus dividends) while weekly returns use market open prices (plus dividends). A simple, equally-weighted average return of all stocks is calculated to determine the portfolio’s monthly return. The monthly and weekly returns are then compounded to arrive at the annual return. Only stocks being assigned a model score are included. Zacks Rank or Indicator Model stocks can, and often do, change throughout the month or week. To learn how we the calculate the return of the Zacks Rank #1 Portfolio, go to go.zackspro.com/rank-disclosure

2 Zacks research consistently achieves top results and is regularly honored for our performance in industry awards from Investars and Integrity Research. To see details of the professional honors Zacks research has earned, visit go.zackspro.com/awards

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 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 is not a licensed securities dealer, broker or US investment adviser or investment bank. The S&P 500 is an unmanaged index.