Equities & Finance Glossary – Terms Starting with Z

 

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Terms Starting with Z

 

Zacks Research

 

Zacks Investment Research was founded in 1978 to provide institutional investors with quantitative models designed to predict stock prices for US companies. Since then, the product line has expanded to provide a wide range of investment-related information services and software tools to over 800 investment management firms, brokerage firms, and corporations, and to over 300,000 individual investors and individual registered representatives. Zacks Investment Research is a Chicago-based research and money management firm that provides individual investors with investment advice in three forms: a) Zacks Independent Research Reports, b) an internet-based investment newsletter, the Zacks Advisor, and c) money management services through Zacks Investment Management, a wholly owned RIA subsidiary.

 

Zacks Independent Research can be characterized as model directed fundamental research.

 

The research process begins with an economic outlook. To develop the Zacks Economic Outlook, Zacks works with Laurence Meyer, former Fed Governor and Chairman of the economic consulting firm Macroeconomic Advisors, and with Chris Varvares, President of Macroeconomic Advisors. Based on the economic scenario, the Zacks Investment Committee makes its forecasts for major trends in the US Equity markets, and provides macro guidance to the Zacks analysts.

 

The Zacks analysts, organized by sector, are responsible for issuing Buy/Hold/Sell recommendations and target prices on individual stocks. Zacks analysts use the Zacks Rank in conjunction with fundamental analysis in issuing an individual recommendation.

 

The Zacks Rank, which has been provided to institutional investors since 1982, classifies over 4,000 companies into five groups (1,2,3,4, or 5) based on statistical patterns in public market fundamental data including brokerage analyst estimates, EPS and sales surprises, and insider trading.

 

Within this universe, Zacks analysts actively follow and issue Buy, Hold, or Sell recommendations on over 1,100 companies. In addition to using the Zacks Rank, Zacks analysts are also provided Industry guidance by Zacks' Investment committee, which rates industries as Positive, Negative, or Neutral.

 

Based on this input, the final decision to recommend a stock as Buy, Sell, or Hold is made by the analysts, who are able to override the Zacks Rank with the approval of Zacks' Investment Committee.

 

 

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