For Immediate Release
Chicago, IL - January 23, 2019 - Zacks Market Edge is a podcast hosted weekly by cks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
(Please use the Soundcloud link from this URL for the PR. Thanks: https://www.zacks.com/stock/news/348870/love-stocks-secrets-of-the-zacks-rank-revealed
Love Stocks? Secrets of the Zacks Rank Revealed
Welcome to Episode #164 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Sheraz Mian, Director of Research at Zacks, to discuss the secrets of the Zacks Rank.
Why would you use the Zacks Rank? Is it good for traders and investors?
Why does a stock change from a Buy to a Hold overnight?
And what about the Industry Rank? Does it work the same as the Zacks Rank? Can I actually trade it?
Keys to the Zacks Rank
The Zacks Rank looks at the earnings outlook. It does not take into account stock price or fundamentals like P/E. It is simply based on earnings.
It has four components: magnitude, agreement, upside and surprise.
The Rank can change daily.
The Zacks Rank correctly forecasts movements of the stock 55-56% of the time. Obviously, it fails the rest of the time. All investors should know the strengths, and weaknesses, of any stock system.
Big Banks in Action
Recently, the big banks reported earnings so the analysts have been adjusting estimates. This is the prime time, just after an earnings report, when the Rank will change.
Bank of AmericaBAC and JP MorganJPM have both had estimate revisions yet Bank of America has jumped to a Rank #2 (Buy) while JP Morgan remains a Rank #3 (Hold).
Why the difference even though both have had estimate revisions?
Learn what goes into the Rank.
Why Are the Chinese Stocks Sells?
At the end of 2018, many Chinese stocks had Zacks Ranks of #4 (Sell) or #5 (Strong Sell).
For example, YYYY was a Zacks Rank #5 (Strong Sell) while AlibabaBABA was a Rank #4 (Sell).
Is there something special with foreign companies and the Rank?
To understand the Rank, which is a short-term recommendation of 1-3 months, you need to look at the full year earnings estimates on both companies.
What do those estimates tell us?
Volatility Just Before an Earnings Report
Have you owned a company that is about to repor t earnings that has suddenly dropped to a Rank #4 (Sell)?
Las Vegas SandsLVS reports soon and is now a #4 (Sell).
Why does the Rank seem to get volatile just before an earnings report?
Find out the answer to this question and more secrets about the Zacks Rank, and the Industry Rank too, on this week's podcast.
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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 of 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 does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
