Zacks Premium 2024 Review: Is It Worth the Cost?

Zacks Premium Review

Overview: Zacks Premium is a comprehensive investment research service that equips active investors with a powerful arsenal of proprietary ranking systems, screening tools, and in-depth stock analysis.

With a proven track record of predicting winning stocks, Zacks Premium empowers subscribers to make data-driven investment decisions and stay ahead of the market.

However, fully leveraging the platform’s extensive capabilities requires a significant time commitment.

Zacks Premium is best suited for experienced, engaged investors who are willing to devote energy to thoroughly researching investment ideas and actively managing their portfolios.

• Powerful proprietary ranking systems for identifying top-performing stocks

• Comprehensive screening tools for filtering stocks based on specific criteria

• In-depth stock analysis and research to support investment decisions

By combining these features, Zacks Premium provides investors with a robust toolkit for making informed investment choices and potentially outperforming the market.

Bottom Line Upfront: For experienced investors willing to put in the time and effort, the $249 annual cost of Zacks Premium is money well spent. The service offers a powerful arsenal of investment tools and resources that can give you a real edge in the market, provided you’re committed to learning the platform and applying its insights regularly.

At the core of the service is the Zacks Rank system, which has a proven track record of identifying stocks poised to outperform in the near term. Having access to the top 5% of stocks the model identifies can significantly boost your portfolio’s performance. However, these rankings change frequently, so you need to stay engaged to capitalize on them.

The Premium service also offers valuable resources for longer-term investors, like:

• The Focus List portfolio of high-conviction picks

• Detailed equity research reports on over 1,000 stocks

These features provide a foundation for making informed investment decisions aligned with your goals and risk tolerance.

Of course, Zacks Premium isn’t perfect. The sheer depth of data and tools can be overwhelming, especially for less experienced investors. And even with the service’s impressive track record, not every recommendation will be a winner. You still need to exercise good judgment and risk management.

But if you’re an active investor who thrives on extensive research and data-driven insights, Zacks Premium is a worthwhile investment. Used skillfully, the platform’s tools can help you build a market-beating portfolio over time. Just be prepared to devote the necessary time and effort to fully harness its potential.

The Good

Predictive Power of the Zacks Rank: The Zacks Rank system has an incredible track record of identifying stocks poised to outperform the market in the near term. By focusing on earnings estimate revisions, this proprietary model consistently selects companies that go on to beat expectations and deliver strong returns.

You can tap into the most promising opportunities with the #1 Rank List, which highlights the top 5% of stocks with the greatest potential.

Style Scores for Every Investing Approach: Whether you’re a value investor, a growth investor, or somewhere in between, Zacks Premium has you covered with its Style Scores. These scores allow you to quickly identify stocks that fit your preferred investing style, making it easy to build a portfolio aligned with your goals and risk tolerance.

The comprehensive VGM Score even combines Value, Growth, and Momentum metrics into a single rating for at-a-glance analysis.

Industry Rank Uncovers Top-Performing Sectors: Zacks Premium gives you a powerful edge with its Industry Rank feature, which highlights the sectors and industries most likely to outperform in the current market environment.

By targeting stocks within top-ranked industries, you can significantly boost your chances of finding winners. This tool has proven remarkably effective at steering investors toward the most promising corners of the market.

Focus List Portfolio Delivers Long-Term Winners: For investors seeking expert guidance on long-term holdings, the Focus List portfolio is a goldmine. This concentrated collection of 50 top stocks has consistently beaten the market since its inception, thanks to the Zacks team’s rigorous analysis and high-conviction approach.

Many of the Focus List picks have gone on to deliver multi-bagger returns, making it an invaluable resource for wealth-building.

Earnings ESP Filter Unlocks Surprise Profits: The Earnings ESP filter is a game-changer for investors looking to capitalize on earnings season. This proprietary metric predicts which stocks are most likely to beat consensus estimates, allowing you to get ahead of the market and capture outsized gains.

With the Earnings ESP filter, you can turn every quarterly report into a potential profit opportunity.

The Hype

Don’t expect Zacks Premium to be a “set it and forget it” type of service that guarantees constant market-beating returns. While the platform provides powerful tools and data-driven insights, successful investing still requires significant skill, effort, and risk management on your part.

It’s important to understand that not every stock pick or top-ranked industry will outperform the market. Even with Zacks’ impressive track record and comprehensive research, there will be individual stock selections that underperform and even lose money. Investing always involves some degree of risk.

Similarly, just because a stock earns a #1 Strong Buy rating or high VGM score doesn’t mean it’s an automatic winner. These ratings and scores are based on quantitative models and historical trends, but the stock market is dynamic and past performance doesn’t guarantee future results. It’s crucial to layer in your own analysis and judgment.

Another thing to keep in mind is that you can’t just blindly follow the Zacks Rank or Focus List recommendations and expect to beat the market. These are tools to help inform your decisions, not a replacement for your own due diligence. Market conditions change, and even the best investors have to adapt their strategies over time.

Finally, while Zacks Premium can certainly help you make better-informed investment decisions, it’s not a silver bullet for overnight riches or guaranteed success in the market. Building long-term wealth still requires patience, discipline, and a well-diversified portfolio aligned with your goals and risk tolerance.

What Can Be Improved?

Zacks Premium could better serve casual investors who may feel overwhelmed by simplifying the platform and providing more educational resources. Introducing the following would help new users get up to speed more quickly:

• Guided tours

• Video tutorials

• Knowledge base

Curated stock lists and pre-built portfolios based on different goals, risk tolerances, and investing styles could serve as helpful starting points.

The service could also offer done-for-you portfolios managed by the Zacks team. Similar to how the Focus List highlights longer-term picks, these portfolios would make it easy for hands-off investors to benefit from Zacks’ top selections without having to constantly monitor and interpret the data themselves.

For more advanced investors, Zacks Premium might consider integrating additional data points and functionality, such as:

• Detailed financial statement modeling

• Sophisticated options analysis

• Custom backtesting tools

• Alerts linked to unconventional events like SEC filings or insider transactions

Allowing deep dives into individual companies and more complex strategies would make the platform even more powerful for professionals.

Finally, Zacks could expand its coverage universe and offer even more proprietary rankings. Applying the Zacks Rank methodology to a greater selection of foreign stocks, small-caps, and even crypto/digital assets would be welcomed by investors seeking an edge in less efficient areas of the market.

Closing

If you’re a committed, hands-on investor who is ready to take your stock picking to the next level, Zacks Premium is the perfect toolkit to help you gain a serious edge.

With its powerful combination of proven ranking systems, premium research, and comprehensive screening tools, you’ll have everything you need to make more informed, profitable investment decisions. While Zacks Premium isn’t for everyone, if you fit the profile of an engaged investor who is eager to learn and willing to put in the time to properly utilize these professional-grade resources, the potential benefits are immense.

You’ll be able to tap into the same stock-picking strategies and market insights that have helped Zacks consistently beat the market for decades. Of course, subscribing to Zacks Premium is an investment in itself - an investment in your ability to understand the market, identify the best opportunities, and ultimately grow your portfolio.

But for those who recognize the importance of rigorous analysis and data-driven decision making, it’s an investment that can pay major dividends. So if you’re ready to move beyond gut feelings and guesswork, and instead harness the power of one of the most respected stock research platforms on the market, we encourage you to take the leap with Zacks Premium.

With a 30-day free trial and a money-back guarantee, you have nothing to lose and a whole new level of investing potential to gain. The only question is: are you ready to unlock it?

FAQ: Zacks Premium

• What does Zacks Premium cost and is there a free trial?

The annual subscription fee for Zacks Premium is $249. However, new subscribers can sign up for a 30-day free trial to test drive the service risk-free.

During the trial period, you’ll have full access to all the features and tools included with Premium. If you decide it’s not a good fit, you can cancel within those 30 days for a full refund.

• How does Zacks Premium compare to other investment research services?

While there are several reputable research platforms like Morningstar Premium and Motley Fool Stock Advisor, Zacks Premium differentiates itself with its proprietary stock ranking system and strong focus on earnings estimate revisions.

The Zacks Rank has a proven track record of identifying stocks most likely to outperform in the near term. Compared to other services at a similar price point, Zacks Premium offers a wider array of professional-grade tools and greater emphasis on shorter-term trading ideas.

• As a new Zacks Premium subscriber, what’s the best way to get started?

When you first sign into Zacks Premium, it can be overwhelming with all the features available. A good way to begin is by:

Familiarizing yourself with the Zacks Rank system

• Browsing the #1 Strong Buy list for stocks with the most promising near-term potential

• Setting up a watchlist to track your favorite stocks

• Reading through the detailed equity research reports to deepen your understanding of each company’s prospects

• Experimenting with the Premium Screener to search for stocks that match your investing style and criteria

How can I incorporate Zacks Premium into my regular investing workflow?

Checking the #1 Strong Buy list and reading the fresh commentary from Zacks’ analysts each morning is a great way to generate actionable trading ideas for the day or week ahead.

When researching stocks on your shortlist, use Zacks Premium to quickly view the Zacks Rank, Zacks Industry Rank, Style Scores, and VGM rating to assess the stock’s overall attractiveness. For ideas with longer-term horizons, lean on the Zacks Focus List and the insights from the equity research reports.

Is Zacks Premium better for short-term trading or long-term investing?

Zacks Premium caters to both short-term traders and long-term investors, but it does tilt more toward the needs of active traders.

The Zacks Rank itself is a short-term indicator designed to predict stock returns over the next 1 to 3 months. Tools like the Earnings ESP Filter are primarily used for trading around quarterly earnings reports.

That said, with features like the Focus List, Industry Rank and Style Scores, Zacks Premium still offers plenty of value for longer-term investors as well.

Best Alternatives to Zacks Premium

1. Motley Fool Stock Advisor (read our review)** If you find Zacks Premium’s extensive data and tools overwhelming, the Motley Fool Stock Advisor could be a more straightforward alternative. This service provides two monthly stock picks along with access to a list of their best-buy recommendations, making it a simpler option for casual investors. The focus here is on long-term growth stocks, which might appeal to those who prefer a less active investing approach. Read our in-depth review of the service here.

2. Seeking Alpha Premium**** For investors who appreciate detailed equity research reports but want a broader range of opinions, Seeking Alpha Premium (see our review) offers comprehensive analysis from both professional analysts and individual contributors. This platform provides a wealth of information, including earnings call transcripts, author ratings, and exclusive stock ideas, making it a strong alternative for those who enjoy deep dives into financial data. Learn more from our review here.

3. Benzinga Pro**** For active traders who rely heavily on real-time news and data, Benzinga Pro (in-depth review) is a formidable alternative. It offers a robust newsfeed, real-time alerts, and a customizable screener to help you stay on top of market movements. The platform is geared towards those who need up-to-the-minute information and actionable insights to make quick trading decisions. Discover more about this service in our review here.

4. TipRanks Premium**

For a more data-driven approach with a focus on analyst ratings and performance, TipRanks Premium (in-depth review) is an excellent alternative. It aggregates analyst forecasts and measures their performance, providing a transparent way to see who the top-performing analysts are and what stocks they recommend. This can be particularly useful for investors who want to make informed decisions based on expert opinions. Check out our full review here.

By considering these alternatives, you can find a service that better matches your investment style and comfort level, whether you prefer a more hands-on approach or a simplified strategy.