Zacks’ Voice of the People Highlights user badger729: “Is Zacks Really Any Good?” from the People & Picks community.
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Is Zacks Really Any Good?
I dabble in stock picking here and there, as part of an overall balanced and hedged investment portfolio, and I decided to track the zacks rank, buying into a stock when its listed as a #1, and selling as soon as it is off the #1 rank. I subtracted out my trading costs, which are 4$ a trade, and looked at the pretax return of my portfolio on a daily basis. This is a very small subset of the data, but these are the results, using a $2000 investment for each position. These are some of the positions I closed from 10/28-11/4.
Immunomedics (IMMU) .62%/day
Coca-Cola Amatil (CCLAY) .19%/day
Wyndham Worldwide (WYN) -.11%/day
Krispy Kreme (KKD) .47%/day
TPC Group (TPCG) .098%/day
Keep in mind this was just moving in and out of positions as Zacks made the recomendations, and bigger gains may have been captured had I used some of my own intution, but when all the math is said and done the portfolio return is 1.795%/day. Over 260 trading days this would work out to a simple return of 466.7% over a year. I guess these guys know what they are doing.
Keep in mind, also this is not the only tactic needed for a good investment portfolio, and that these gains were all during a great bull market over the past couple months, and I was not going short any positions.
I just thought some people might find this interesting, happy trading 🙂
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IMMUNOMEDICS (IMMU): Free Stock Analysis Report
KRISPY KREME (KKD): Free Stock Analysis Report
WYNDHAM WORLDWD (WYN): Free Stock Analysis Report
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