Our Methodology

A Transparent, Repeatable Framework Built on Earnings-Revision Dynamics

Zacks is built on a foundational insight: changes in earnings expectations are among the most reliable drivers of equity price performance. Everything we publish flows from a disciplined, quantamental application of that principle.

The Framework

Earnings-Revision Dynamics

Changes in earnings expectations are among the most reliable drivers of equity price performance. The framework operationalizes that insight in four ways.

Real-Time Revision Monitoring

We monitor analyst estimate revisions across the entire market in real time — surfacing the agreement, magnitude, and direction of change that move prices.

Quantamental Approach

Model-driven signals are blended with forward-looking analyst interpretation, combining objective quantitative inputs with the contextual judgment of experienced analysts.

Style-Agnostic Applicability

The framework is effective across both growth and value environments, so the methodology holds up across market regimes rather than a single factor cycle.

Transparent & Repeatable

Every rating, signal, and recommendation is grounded solely in data, earnings information, and model-driven indicators — not business development incentives — and the inputs are shown explicitly.

Zacks Rank Transparency

The Four Components of the Zacks Rank

Every quant rating is shown with the inputs driving it — so users can see exactly what moves the score.

Agreement
The extent to which analysts are revising estimates in the same direction.
Magnitude
The size of recent estimate revisions, up or down.
Upside
The relationship between the Most Accurate Estimate and the consensus.
Surprise
Recent earnings surprise behavior and its persistence.
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