You’ve seen the Zacks Rank everywhere. Every stock screener, every financial site, every research report seems to cite that 1-5 rating. So why would you pay $249/year for Zacks Premium when the basic ratings are scattered across the internet for free?
That’s the right question. And the answer isn’t as simple as “you get more data.” The real question is whether a 35-year-old quantitative system—built by an MIT PhD on the premise that earnings revisions predict stock performance—can actually give you an edge in a market where the spread between winners and losers is over 575 percentage points.
Quick Verdict: Is Zacks Premium Worth It?
Zacks Premium is worth it for data-driven investors who want systematic stock screening based on earnings momentum—but it’s a research tool, not a complete investment solution.
At $249/year, you’re paying for full access to the Zacks Rank system, screening tools, and research reports that go beyond the free ratings you see elsewhere. The value proposition is clear: instead of chasing headlines or gut feelings, you get a quantitative framework that’s been in continuous use since 1988.
The catch: this is a screener, not a conviction-builder. You’ll get stocks to research, not stocks to blindly buy. If you want someone to tell you exactly what to buy and hold for five years, look elsewhere. If you want a systematic starting point that removes emotion from the initial selection process, Zacks Premium delivers.
Rating: 4.0/5 — Strong research tool for earnings-focused investors, but lacks the hand-holding of premium stock-picking services.
The Zacks Rank Track Record
The Zacks Rank system has been running since 1988—over 36 years of live performance data. That’s not a backtest. That’s real-world, real-money history.
The methodology is built on research by founder Len Zacks, who holds a PhD from MIT. His core insight: when analysts revise their earnings estimates upward, stocks tend to outperform. When they revise downward, stocks tend to underperform. Simple in concept, rigorous in execution.
Here’s what the system looks like in practice:
| Zacks Rank | Meaning | Implication |
|---|---|---|
| #1 | Strong Buy | Earnings estimates rising significantly |
| #2 | Buy | Positive earnings momentum |
| #3 | Hold | Neutral earnings picture |
| #4 | Sell | Negative earnings momentum |
| #5 | Strong Sell | Earnings estimates falling significantly |
The ratings update daily based on new analyst estimate data. That’s important: you’re not getting stale picks from a monthly newsletter. You’re getting a dynamic system that responds to new information.
What we can verify: Zacks has been publishing these ratings continuously for 36+ years. The methodology is transparent and academically grounded. The company provides research to both retail and institutional clients, suggesting the approach has real-world credibility.
What we can’t verify independently: Specific return percentages. Zacks publishes performance claims, but third-party verified performance data isn’t readily available. This is a limitation you should understand before subscribing.
The Bottom Line: The Zacks Rank is one of the longest-running quantitative stock selection systems in the industry. That longevity says something—systems that don’t work don’t survive 36 years.
Try Zacks Premium — See Current Strong Buy Stocks
What You Get With Zacks Premium
Zacks Premium is a research platform, not a simple stock-picking newsletter. Here’s what your $249/year buys:
The Zacks Rank System (Full Access)
The free Zacks Rank ratings you see on other sites are just the tip. Premium gives you:
- Daily updated rankings on thousands of stocks
- Historical rank changes so you can see momentum
- Rank breakdowns showing exactly why a stock earned its rating
- Filtering by rank across your entire watchlist
Stock Screening Tools
This is where Premium earns its keep. You can screen stocks by:
- Zacks Rank (1-5)
- Industry Rank (Zacks ranks industries too)
- Sector performance
- Earnings estimate revisions
- Earnings surprise history
- Valuation metrics
- Technical indicators
The screener lets you combine criteria. Want Zacks Rank #1 stocks in the top 20% of industries with positive estimate revisions in the last 30 days? You can build that screen.
Research Reports
Each stock gets a detailed research report covering:
- Current Zacks Rank and rationale
- Earnings estimate trends
- Industry positioning
- Valuation analysis
- Key financial metrics
These aren’t the two-paragraph summaries you get free. They’re full research reports that explain why a stock ranks where it does.
Portfolio Recommendations
Zacks provides model portfolios organized by investment style:
- Growth-focused portfolios
- Value-focused portfolios
- Income-focused portfolios
- Sector-specific selections
You can track these portfolios and see how they perform over time.
Mutual Fund & ETF Research
Beyond stocks, Premium includes:
- Fund rankings using the Zacks methodology
- ETF screening tools
- Fund comparison features
- Expense ratio analysis
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How the Zacks Rank Actually Works
Understanding the methodology helps you use the tool effectively.
The Core Insight
Len Zacks’ research found that when Wall Street analysts revise their earnings estimates, stocks tend to follow. An analyst raising their estimate from $2.00 to $2.20 EPS is a signal—they’ve seen something that made them more optimistic.
The Zacks Rank captures this by tracking:
- Estimate revisions — Are analysts raising or lowering numbers?
- Magnitude of revisions — How big are the changes?
- Analyst agreement — Are multiple analysts moving in the same direction?
- Earnings surprises — Has the company beaten estimates recently?
Why This Matters Today
In a market with extreme dispersion—where top performers are up 500%+ and bottom performers are down 68%—stock selection matters enormously. The Zacks approach gives you a systematic way to identify companies with positive earnings momentum.
This is particularly relevant when:
- Earnings season creates volatility
- Analyst estimates are being revised rapidly
- You want to avoid stocks with deteriorating fundamentals
The Limitation
The Zacks Rank tells you about earnings momentum, not valuation. A stock can be a Zacks Rank #1 and still be overpriced. It can be a Rank #5 and be a deep value opportunity.
This is why Zacks Premium is a starting point, not an endpoint. You still need to do your homework on valuation, competitive position, and whether you actually want to own the business.
Zacks Premium Pricing: The Full Picture
What It Costs
| Tier | Price | What You Get |
|---|---|---|
| Zacks Premium | $249/year | Full Zacks Rank access, screeners, research reports |
| Zacks Ultimate | Higher (contact for pricing) | Additional features and research |
The Math:
- $249/year = $20.75/month
- That’s less than $5/week
- One good trade that you found through the screener pays for years of subscription
Compared to Alternatives
| Service | Price | Focus |
|---|---|---|
| Zacks Premium | $249/year | Earnings-focused quantitative screening |
| Morningstar Investor | $249/year | Fair value analysis, wide-moat stocks |
| Seeking Alpha Premium | $299/year | Crowdsourced research, quant ratings |
| Stock Rover | $179/year | Fundamental screening, portfolio analytics |
Zacks Premium is competitively priced for what you get. The question isn’t whether $249 is expensive—it’s whether the earnings-focused methodology matches your investing style.
Refund Policy
Zacks requires contacting customer service for refund details. This is less transparent than services with clear 30-day guarantees. Before subscribing, confirm the refund policy directly.
The Trade-Offs: Pros and Cons
What Works
36+ years of live data. This isn’t a backtest. The Zacks Rank has been running since 1988, which means you can see how it’s performed through multiple market cycles—including crashes, bubbles, and everything in between.
Systematic approach removes emotion. When you screen for Zacks Rank #1 stocks, you’re not chasing headlines or falling for compelling narratives. You’re following a quantitative signal based on what analysts are actually doing with their estimates.
Daily updates. Unlike monthly newsletters, the Zacks Rank responds to new information in real-time. When an analyst raises estimates, the rank adjusts. This matters in fast-moving markets.
Comprehensive screening. The ability to combine Zacks Rank with industry rank, valuation metrics, and technical indicators gives you powerful filtering capabilities.
What Doesn’t
No hand-holding. Zacks Premium gives you tools, not instructions. If you want someone to tell you “buy this stock and hold for five years,” this isn’t it. You’re expected to do your own research on the stocks that screen well.
Pricing opacity. The fact that you can’t see clear pricing without signing up or contacting sales is frustrating. Most competitors are more transparent.
Earnings focus has blind spots. The Zacks Rank doesn’t capture everything. A company with stable earnings but massive balance sheet problems won’t show up as a Rank #5 until analysts start cutting estimates.
Verification challenges. While Zacks publishes performance claims, independent third-party verification of specific return numbers is limited.
Who Should Use Zacks Premium
It’s Right For You If:
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You’re data-driven. You prefer quantitative signals over qualitative stories. You want numbers, not narratives.
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You’ll do additional research. You understand that a Zacks Rank #1 is a starting point, not a buy signal. You’ll dig into the company before committing capital.
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You follow earnings. Earnings season is your favorite time of year. You pay attention to estimate revisions and earnings surprises.
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You want a screening system. You’re building watchlists and need a systematic way to filter thousands of stocks down to a manageable number.
It’s NOT For You If:
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You want complete investment guidance. If you need someone to tell you exactly what to buy, how much, and when to sell, try Motley Fool Stock Advisor instead. They provide specific buy recommendations with holding guidance.
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You’re a technical trader. The Zacks Rank is fundamental, not technical. If you trade based on charts and patterns, look at TradingView for better tools. See our TradingView review for details.
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You want deep narrative research. If you need to understand the story behind a company to hold through volatility, Morningstar Investor provides more qualitative analysis.
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You’re a complete beginner. Zacks Premium assumes you know what earnings estimates are and why they matter. If you’re just starting out, a simpler service might be better.
Best Alternatives to Zacks Premium
For Quantitative Screening
Seeking Alpha Premium — $299/year
Seeking Alpha offers its own Quant Rating system alongside crowdsourced research from thousands of contributors. You get quantitative scores plus qualitative analysis. Better for investors who want both data and narrative.
See our Seeking Alpha Premium review for the full breakdown.
For Fair Value Analysis
Morningstar Investor — $249/year
Same price as Zacks, completely different approach. Morningstar focuses on fair value estimates and economic moats. Better for value investors who want to know if a stock is cheap relative to intrinsic value, not just whether earnings estimates are rising.
Read our Morningstar Investor review for details.
For Fundamental Screening
Stock Rover — $179/year
More affordable screening platform with deep fundamental data. Less focus on earnings revisions specifically, more comprehensive financial analysis. Good for investors who want broad screening capabilities at a lower price.
See our Stock Rover review for the full analysis.
For Stock Picks (Not Screening)
Motley Fool Stock Advisor — $99/year
If you don’t want to screen and research—you just want someone to tell you what to buy—Stock Advisor is the better choice. They provide specific recommendations with conviction ratings and holding guidance.
Read our Stock Advisor review for the complete breakdown.
Try Zacks Premium — See If It Fits Your Style
Final Verdict
Zacks Premium is a solid research tool for investors who think in terms of earnings momentum. The 36-year track record of the Zacks Rank system, the daily updates, and the comprehensive screening tools justify the $249/year price tag—if this approach matches how you invest.
The key word is “tool.” This isn’t a service that tells you what to buy. It’s a service that helps you find stocks worth researching further. If you’re comfortable with that distinction, Zacks Premium delivers real value.
My recommendation: If you’re an earnings-focused investor who wants a systematic screening approach, Zacks Premium is worth trying. The methodology is academically grounded, the system has survived 36+ years of markets, and the price is competitive with alternatives.
If you want more hand-holding, more narrative, or a completely different investment philosophy, the alternatives above will serve you better.
Where could you be in five years with a systematic, data-driven approach to stock selection? The investors who build processes—rather than chasing tips—tend to compound more consistently over time.
For a broader comparison of research platforms, explore our guide to the best stock research websites.
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Frequently Asked Questions
Is Zacks Premium worth the money?
Yes, for earnings-focused investors who want systematic screening tools. At $249/year, Zacks Premium provides full access to the Zacks Rank system, stock screeners, and research reports. The value depends on whether the earnings-revision methodology matches your investment style. If you follow earnings estimates and want a quantitative approach to stock selection, it’s worth the cost. If you prefer narrative-driven research or want specific buy recommendations, alternatives like Morningstar Investor or Motley Fool Stock Advisor may be better fits.
What are the best alternatives to Zacks Premium?
The best alternatives depend on what you’re looking for. Morningstar Investor ($249/year) offers fair value analysis and economic moat ratings—better for value investors. Seeking Alpha Premium ($299/year) combines quant ratings with crowdsourced research. Stock Rover ($179/year) provides comprehensive fundamental screening at a lower price. Motley Fool Stock Advisor ($99/year) is best if you want specific stock picks rather than screening tools.
Zacks Premium vs Morningstar Investor: Which is better?
Both cost $249/year but take different approaches. Zacks Premium focuses on earnings momentum—stocks where analysts are raising estimates tend to outperform. Morningstar Investor focuses on fair value and economic moats—stocks trading below intrinsic value with durable competitive advantages. Choose Zacks if you’re earnings-focused and want quantitative screening. Choose Morningstar if you’re value-focused and want to understand whether a stock is cheap relative to what it’s worth.
How do I cancel Zacks Premium?
Zacks requires contacting customer service to cancel your subscription. The company doesn’t provide a self-service cancellation option on its website. Before subscribing, confirm the cancellation and refund policies directly with Zacks customer support. This is less convenient than competitors that offer one-click cancellation.
What is the Zacks Rank and how does it work?
The Zacks Rank is a proprietary 1-5 stock rating system based on earnings estimate revisions. Stocks rated #1 (Strong Buy) have analysts raising earnings estimates significantly. Stocks rated #5 (Strong Sell) have analysts cutting estimates. The system has been in use since 1988 and updates daily based on new analyst data. The core insight: when analysts revise estimates upward, stocks tend to outperform; when they revise downward, stocks tend to underperform.
Is the free Zacks Rank the same as Zacks Premium?
No. The free Zacks Rank ratings you see on financial websites are just the basic 1-5 scores. Zacks Premium includes full access to screening tools, detailed research reports explaining why stocks earn their rankings, historical rank changes, industry and sector rankings, and portfolio recommendations. The free ratings tell you what the rank is; Premium tells you why and helps you find stocks that match your criteria.
Does Zacks Premium offer a free trial?
Yes, Zacks Premium typically offers a 30-day trial period for new subscribers. During the trial, you get full access to the Zacks Rank system, stock screeners, research reports, and portfolio recommendations. The trial allows you to test whether the earnings-focused methodology fits your investment style before committing to the $249/year subscription. Contact Zacks customer service to confirm current trial availability and terms, as promotional offers may vary.
How accurate is the Zacks Rank system?
The Zacks Rank system has been in continuous operation since 1988, making it one of the longest-running quantitative stock selection systems in the industry. The methodology is based on research showing that earnings estimate revisions correlate with future stock performance—when analysts raise estimates, stocks tend to outperform, and vice versa. However, independent third-party verification of specific return percentages is limited. The system’s 35+ year survival through multiple market cycles suggests meaningful effectiveness, but no stock ranking system is perfectly accurate, and the Zacks Rank should be used as a research starting point rather than a definitive buy/sell signal.
What’s the difference between Zacks Premium and Zacks Ultimate?
Zacks Premium costs $249/year and provides full access to the Zacks Rank system, stock screeners, research reports, and model portfolios. Zacks Ultimate is a higher-tier subscription that includes everything in Premium plus additional features like real-time buy/sell alerts, access to Zacks’ portfolio of top picks, and more aggressive trading strategies. Ultimate is priced significantly higher (contact Zacks for current pricing) and is designed for active traders who want more hands-on guidance. Most investors find Premium sufficient for screening and research purposes; Ultimate is better suited for those who want Zacks to do more of the stock selection work.