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%.


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.


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


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:


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.”