Zacks Stocks Bullish

Hello you very wonderful and intelligent people that make up this forum. I sincerely hope you are having another good week and doing well.

I have noticed that Zacks website, usually ranks stocks using a certain criteria. I have noticed that often the site recommends stocks that are bullish. Some stocks have increased about 200% in a year. I kindly wondered please what are some factors that could contribute for instance to 200% gains in a year for a stock, is this usually company’s investing heavily in marketing or growth, further or that have a rapid spike in earnings growth please? If anyone kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me.

Sending you lots of good wishes and i truly hope you have a wonderful life and achieve all your investing goals. Very best wishes to all you amazing people on this forum. Take care.

Hi. I think that there are multiple aspects to your question(s).

What contributes to a 200% rise in share price. There are obviously a whole load of things that could do this. A slight technicality I don’t know whether you mean doubled or tripled when you say 200%. That aside, a pharma company could get drug approval, a mining company could start production and confirm output or resource levels, a company could announce a major deal or product, a company that has been perceived as high risk could have that risk removed, a company could turn into profitability (potentially removing the risk of discounted fund raising), new management could change the market’s view of the company…

Zach’s are a major publisher of news feed info. For example, you will often see their releases in the newsfeed on tradingview. I have never subscribed to Zach’s so can’t comment first had but I have read several “reviews” questioning the performance of their recommendations/tips. They are good at promoting their successes but I got the impression that overall their performance isn’t great. Like Motley Fools, Investors Chronicle and plenty of others, they can be a good reference for info but at the end-of-the-day its best to make your own decisions and take a broad range of info doing so. In terms of Zacks my impression (maybe wrong) is that their whole system is based on an algorithm that looks at analyst forecasts and ratings and focuses on changes to those ratings/forecasts rather than the ratings themselves. Simplistically the algorithm implies that the price may go up if analyst/broker ratings improve and price may go down is there is a downgrade. This is pretty logical and is often true in the short term so when a downgrade happens the share price may go down in the very short term. However, there are lots of issues with analyst ratings themselves and questions about how good they actually are. In broad terms they may (or may not) help give a rough feel as to whether the company is good or not but the published ratings aren’t always that good and they often lag. Thus, for example, I’ve seen share price crash for companies with lots of buy ratings and only months later once the dust has settled do the analysts change their ratings and give new price targets that simply reflect where the price has settled rather than (imo) being an objective valuation of the company. So there can be many issues with a system that uses these rating to give buy/sell signals or recommendations. The analyst ratings often lag the real world, they often just reflect what is already know and priced in… but the analyst ratings can have short term impact on share price. That said, if for example a company is a basket case and has lots of sell ratings but turns a corner and suddenly starts to get buy ratings then the Zack system can flag that and if the company has fundamentally turned a corner it is possible it will then perform strongly in the medium to long term thus delivering a good return which Zacks can claim.

I think Zacks also have a curated set of recommendations (ie where humans actively look at the research and pick companies to recommend) and again the reviews I’ve read are mixed.

Personally I think all of these sites are good sources of info to use in our own research and decisions. I’m sceptical whether some of them are worth the significant fees they charge for their services and I’d be real interested to hear other peoples views on that particularly anyone who has subscribed.

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Thank you very much for your very fabulous and helpful response WakeMeUp, you are definitely the best member on this forum. Your answers are always exceptionally helpful and you are an amazing person.

I like what you mentioned about Zacks and the fact that these sites, should be used as a starting place to get investment ideas. Like sites such as Motley Fools and Investors Chronicle. It seems that Zacks does not do any fundamental or technical analysis on the stocks, it seems to be looking at a variety of analyst forecasts and ratings, i really appreciate you mentioning this it really means alot. It seems this could be useful if a company has alot of sell ratings and then starts to turn a corner and get buy ratings, the Zacks system could be useful for flagging potential medium to long term holdings. Thank you very much for your thoughts on this.

Can i kindly please ask is there a way to screen for company’s that might have been unprofitable for many years, like a mining stock, that might have just started coming into profitability please? Further or what are some places to get ideas for company’s that potentially could have deals upcoming, or turning into profitability please? If you kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me.

Sending you lots of good wishes WakeMeUp and i truly hope you continue to achieve massive success with your investing. Thank you again for all your help you have been a star. Very best wishes to you.