Where does the rank come from?

The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +24.04% per year since 1988. In 1978, Zacks' Founder and CEO hit upon a key discovery: earnings estimate revisions are the most powerful force impacting stock prices. With this crucial finding, he developed the Zacks Rank to harness the power of earnings estimates. For more than a quarter century, it has more than doubled the S&P 500 with an average gain of +24.04% per year. These returns cover a period from January 1, 1988 through December 4, 2023. The Zacks Rank is a reliable tool that helps you trade with confidence regardless of your trading style and/or risk tolerance.