I’ve already written how the Schwab rankings on my stocks are usually C’s, D’s, E’s, and F’s. Even in years when I gain 75% investing in them. They are undoubtedly value scores.
Zacks, on the other hand seems to rate on the basis of beating estimates, expectations of beating estimates, analysts raising estimates and stock price expectations, and other factors that I’m not aware of. They are rated 1 to 5 with one being best and 5 being worst, and are in a nice bell shaped curve with 1’s and 5’s being rare (5% each of total?) and 40% in the middle at 3, and perhaps 25% each for 2 and 4.
My stocks usually seem to get rankings of 2 or 3 with an occasional 4 and a rare 1.
Today their rankings were
3 - Alteryx, Datadog, Okta
2 - Coupa. Crowdstrike
1 - Zoom moved up today to a 1 ranking
Now before you get excited about this, you need to sit back and realize that these rankings make no particular sense. Why, for instance, would Alteryx have just a 3, while Coupa has a 2.
There are also sub rankings on Value, Growth, and Momentum, and a VGM rating combining those three.
All my stocks are rated F on value .
On growth, four are rated A and Datadog and Zoom are rated D ???
Wait, you haven’t heard the best. On momentum, Alteryx which was up 32% this week, is rated F while Crowd was rated A. does that make any sense at all. Zoom got a C on momentum.
And the best was, putting together Zoom’s F on Value, D on growth, and C on momentum, it had a combined VGM rating of F. And it got an overall Zack’s Rank of 1 ??? (at least they got that part right, but how does it all make any sense).
But that’s why I’ve given up on any ratings except our own, here on the board.
A link to the Knowledgebase for this board is in the Announcements panel that is on the right side of every page on this board.
For some additions to the Knowledgebase, bringing it up to date, I’d advise reading several other posts linked to on the panel, especially “How I Pick a Company to Invest In,” and “Why My Investing Criteria Have Changed,” and “Why It Really is Different.”