| Zacks Rank | Recommendation | Avg. Annual Performance |
|---|---|---|
| 1 | Strong Buy | 31.39% |
| 2 | Moderate Buy | 20.85% |
| 3 | Hold | 11.55% |
| 4 | Moderate Sell | 5.27% |
| 5 | Strong Sell | 3.54% |
THE ZACKS PERFORMANCE RANK, which is the core of the Zacks investment philosophy, has delivered annualized returns of over 30% since 1982. It is a proprietary quantitative stock ranking model based on the pattern of revisions in analysts' earning estimates.
Through years of quantitative study we have demonstrated that the changes that analysts make today to their earnings estimates are strong and accurate predictors of future stock performance. We rank a universe of approximately 4,000 U.S. companies from #1 "strong buy" through #5 "strong sell."
For the period 1988 through 2007, the Zacks #1 ranked stocks produced a 31.39% annualized return and the #5 ranked stocks produced a 3.54% annualized return based on a monthly rebalancing. In the same period, the S&P 500 produced a 11.66% annualized return.
DISCLOSURE: The Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank gross of fees. Results reflect the reinvestment of dividends and other earnings, monthly rebalancing, and no transaction costs. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if Zacks were actually managing a client’s money. Separately managed account minimums apply. Standard management fees are available on request and are described in Part II of form ADV. The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor’s. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index.