The system is built on the principle that stock prices follow earnings. It identifies companies where brokerage analysts are raising their estimates, which often triggers institutional buying.

: Only about 5% of the over 4,000 stocks covered by Zacks earn the #1 (Strong Buy) designation.

: ~24% vs. the S&P 500's ~11% (1988–2026).

: Percentage of analysts revising in the same direction.

: History of beating previous earnings expectations. Pros and Cons Predict price movement using 30+ years of accuracy

: Difference between the most accurate estimate and the general consensus.

: Ratings are updated daily and are most effective over a 1 to 3 month holding horizon.