Why Zacks is Garbage

It might be OT but Saul has posted about info gathered from Zacks.

Visa (V) Stock Sinks As Market Gains: What You Should Know
Zacks Equity Research
March 18, 2019

Visa (V) closed at $155.03 in the latest trading session, marking a -0.28% move from the prior day. This change lagged the S&P 500’s 0.37% gain on the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.34%.

https://finance.yahoo.com/news/visa-v-stock-sinks-market-214…

Terrible, isn’t it? Now for context:

This was on March 18. It so happens this was the day V made a new 52 week and all time high of 156.82.

http://softwaretimes.com/pics/v-03-18-2019.gif

a -0.28% move from the prior day
lagged the S&P 500’s 0.37% gain
the Dow gained 0.25%
Nasdaq, … added 0.34%.

Garbage! I discovered a while back that a lot of what Zacks publishes is robot produced. It might be Artificial but it is not Intelligent.

Denny Schlesinger

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Not uncommon. Most of the services Fidelity uses to publish company ‘research’ updates are purely robotic. But that daily price move report is true pure waste.

I haven’t been too impressed with Zacks, either. The better stuff seems to be more cottage-industry people who don’t try to analyze every stock in cookie-cutter fashion, but get to know a much smaller collection of stocks very well.

There are some cookie-cutter criteria that work better than others, but Zack’s method is not one I’d be that swayed by on a stock without confirmation by other methods.

AAII, a non-profit, gives information and examples of a lot of methods, NOT including Zack’s:

https://www.aaii.com/stockideas/allstrategies

I think you have to be a paying member to see stocks that pass the screens, but I think you can see the screening methods described for free.

I wonder how the performance of people here would change if you added a constraint or two, such as limiting the P/S ratio. Saul’s main criterion is probably revenue growth, while also noting change in profit/loss as revenue goes up. (So that, e.g., if revenue grows well, but losses grow in similar fashion, that makes the stock much less attractive.) There’s also a fair amount of what I might call holistic analysis, based on lots of experience, cutting to the chase in the company’s “story.”

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