Founded in 1978 by MIT-educated economist Len Zacks, Zacks Investment Research provides investment-related information services to individuals, corporations and institutional investors. It covers mutual funds, ETFs, and options. Zacks is an independent firm, and is not a registered US investment bank or broker. It provides a range of services for individual investors and offers free membership to its website.
Zacks provides recommendations based on the company’s Zacks Rank. This is a mathematical ranking system that classifies stocks into five groups, according to four criteria. Depending on the criteria, a stock can be ranked as a strong buy or strong sell. A Zacks ranking of one indicates a strong buy recommendation, while a ranking of five indicates a strong sell recommendation.
Zacks’s methodology blends quantitative and fundamental research. In the 1970s, Zacks began building statistical models to predict stock prices. It found that earnings estimate revisions were the most influential force affecting stock prices. Zacks developed an algorithm that is now used by over 20,000 professionals worldwide. Zacks also offers extensive tools for security analysis.
Zacks has been providing aggregate stock earnings forecasts since the early 1980s. It has a long history of performance, and is one of the most reputable firms in the finance industry.
Zacks is also known for its personal service. It has a team of highly skilled analysts. They have an excellent track record, and the company is known for providing high quality research. They offer one-page snapshot reports on over 2,600 stocks. During market hours, they provide live updates.