Zacks vs. Morningstar: What's the Difference? (2024)

FAQs

Which is better Zacks or Morningstar? ›

Zacks is much more quantitative in nature, while Morningstar uses fundamental analysis as a larger part of its recommendations. Morningstar appears to base its recommendations on an unbiased scale, while the Zacks Investment Research rating system is based solely on giving its members the most potential for profit.

Is Zacks com trustworthy? Yes, Zacks is trustworthy. The company boasts exceptional long-term returns using its quantitative system which are backed by data.

The Bottom Line. Morningstar acknowledges its rating system is a quantitative measure of a fund's past performance that is not intended to accurately predict future performance. Instead, the company recommends investors use the rating system to evaluate a fund's track record compared to its peers.

The Zacks #1 Rank List is the best place to start your stock search each morning. It's made up of the top 5% of stocks with the most potential. Each weekday, you can quickly see the Zacks #1 Rank Top Movers from Value to Growth, Momentum and Income, even VGM Score.

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The Zacks Industry Rank is determined by calculating the average Zacks Rank for all of the stocks in the industry and then assigning an ordinal rank to it. For example, an industry with an average Zacks Rank of 1.6 is better than an industry with an average Zacks Rank of 2.3.

The Zacks target price is the average of target price estimates received by covering sell-side analysts for each stock. Sometimes the Consensus Target Price is below the current price per share. This means that covering analysts expect the price to decrease, a bearish sign.

Stock Monitoring

Know exactly when to buy, hold and sell the stocks in your portfolio with Zacks' free Portfolio Tracker. Daily email alerts will brief you on updated Zacks Rank and Style Scores, Earnings Estimate Revisions, Broker Recommendation Changes and more. You can also add your mutual fund and ETF positions.

Zacks data is accessible through our backtesting and production models, in addition to being available independently through raw data feeds as both history files and updates.

Morningstar is a respected and reliable source of independent investment analysis for all levels of fund and stock investors, ranging from inexperienced beginners to sophisticated experts.

Why is Morningstar so good? ›

Morningstar offers a comparative benchmark performance category. Subscribers have access to actionable analyst reports with over 2,000 funds, ETFs, and stocks. Mutual funds are allocated into specific investment categories and stocks. The platform also states the annual fees to own an ETF or mutual fund.

A 4-star rating means the stock is moderately undervalued and trading at a slight discount relative to its fair value estimate. To unlock pre-built screens curated by our seasoned analysts, subscribe to Morningstar Investor.

Price-related information, the Zacks Rank*, earnings estimates, average broker recommendations, and insider trading data is updated daily (after the market close). All other data is updated weekly (by Monday at 4:30 am).

Type of investor: Zacks is geared toward skilled investors, short-term traders, and professional investors.

Zacks #3 Rank Stocks Can Be Perfectly Acceptable

Growth and income investors, who also typically fall into the long-term investor camp, need to be careful when choosing to invest only in Zacks #1 Rank stocks.

Zacks has built a reputation as a reliable source of stock data for investors looking for a stock picking edge, Zacks' free stock screener has almost everything investors need to make well-timed and informed stock picks. That's why Zacks is our choice as the best free option for a stock screener.

The Motley Fool has positions in and recommends Amazon.com, Apple, Bank of America, Berkshire Hathaway, Bitcoin, Block, Etsy, FedEx, Intuitive Surgical, MercadoLibre, PayPal, Pinterest, Shopify, and Walt Disney.

Gain full access to our powerful tools and resources locked behind Zacks Premium for 30 days absolutely free. Subscription: $249/year.

Apple currently has an average brokerage recommendation (ABR) of 1.40 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.)

What is Zacks rank of #5? ›

The Zacks Rank is system that ranks over 4400 companies based on changes to analyst earnings estimates. The Zacks Rank of #1 (Strong Buy) is the highest, and best, rank. The Zacks Rank of #5 (Strong Sell), is the worst rank. It is a computer algorithm that can change daily.

BEST Inc (NYSE:BEST)

The 1 analysts offering 12-month price forecasts for BEST Inc have a median target of 12.43, with a high estimate of 12.43 and a low estimate of 12.43. The median estimate represents a +344.06% increase from the last price of 2.80.

Long-term projections have Meta at $272 by the end of 2022 and $360 by the end of 2023. Meta stock will hit $470 in 2025, $580 in 2027, and $765 in 2030, with further gains expected thereafter.

Is Tesla stock a Buy, Sell or Hold? Tesla stock has received a consensus rating of buy. The average rating score is and is based on 62 buy ratings, 26 hold ratings, and 5 sell ratings.

Its Value Score of C indicates it would be a neutral pick for value investors.

Lower scores are better than higher scores. In order to get a lower score, an industry group must have a greater proportion of stocks with Zacks Rank of #1 ("Strong Buy") or #2 ("Buy"). These are stocks with the most positive trend in earnings estimate revisions.

Zacks' Portfolio Tracker is easy to use and free.

Who competes with Morningstar? ›

Funds that earn our highest rating—Gold—are those that we think are most likely to outperform over a full market cycle.

Morningstar, Inc. is an American financial services firm headquartered in Chicago, Illinois and was founded by Joe Mansueto in 1984.

Morningstar Risk is an annualized measure of a fund's downside return volatility, or how often the fund has dipped below its average returns over a period.

If you want to access reports and information from the Morningstar Premium section, check your local and state libraries to see if you can access it for free with your library card. Some public libraries also offer library cards to non-residents for an annual fee.

Analyst Ratings are continuously monitored and reevaluated at least every 14 months. How does the Morningstar Analyst Rating work? Morningstar fund analysts assign the Analyst Rating to funds that have garnered the most investor interest and assets.

The Morningstar Quantitative Rating for managed investment products is off to a good start as a complement to the Morningstar Analyst Rating. The rating is a reliable input for investors to use when Morningstar analysts don't cover a fund.

A 5-star rating means the stock is undervalued and trading at an attractive discount relative to its fair value estimate.

Morningstar's quantitative equity rating, noted with a superscript Q, is forward-looking and generated by a statistical model. This model is designed to mimic our analyst-driven ratings by comparing a stock's underlying fundamentals with those of firms rated by Morningstar's analysts.

Len Zacks, Founder & CEO

Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.

Is Zacks long term or short term? ›

The Zacks Rank is a short-term indicator of stock performance that is effective for one to three months.

Since 1978, the Zacks Investment Research team has given investors a trading advantage through its Zack Rank stock-rating system. Today, Zacks Investment Management is a leading wealth management firm with over $3 billion under active management.

Finnworlds, xignite, Graviton, and Cbonds are the top competitors and alternatives to Zacks Investment Research.

Is Zacks com trustworthy? Yes, Zacks is trustworthy. The company boasts exceptional long-term returns using its quantitative system which are backed by data.

Is Zacks Premium worth it? Yes, absolutely. Zacks is worth it. Given that the stocks they rate as a #1 Strong Buy have beat the SP500 by 13.9% on average for the last 34 years, their system works.

Stocks with an 80 or higher rating have the best chance of success. However, companies can boost their EPS figures through stock buybacks that reduce the number of outstanding shares. So, strong profit growth also demands strong sales growth.

Over the past 35+ years, it has developed a swath of independent research, ratings, and tools. Today, Morningstar is one of the most respected stock market analysis firms in the U.S. and is trusted by individuals and professional investors alike.

Funds that earn our highest rating—Gold—are those that we think are most likely to outperform over a full market cycle.

Is Morningstar a fiduciary? ›

We offer a spectrum of fiduciary support through Morningstar Investment Management LLC, a registered investment adviser and wholly owned subsidiary of Morningstar, Inc.

Len Zacks, Founder & CEO.

Shares of Target have returned -3.4% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

A 4-star rating means the stock is moderately undervalued and trading at a slight discount relative to its fair value estimate. To unlock pre-built screens curated by our seasoned analysts, subscribe to Morningstar Investor.

On November 30, DBRS Limited (DBRS Morningstar) confirmed Costco Wholesale Corporation's Issuer Rating and Senior Unsecured Debt rating at AA (low) and also confirmed the Company's Short-Term Issuer Rating at R-1 (middle). All trends are Stable.