Identifying the Best Industries

The Zacks Industry Rank leverages the power of earnings estimate revisions to identify the best industries and the best stocks within those industries. These are stocks that are not only benefiting from good management, but also are also riding a wave of favorable industry conditions.

What is the Zack Industry Rank?
The Zacks Industry Rank is based on the highly successful Zacks Rank indicator. Since 1988, Zacks #1 Rank stocks have generated an annualized return of 30%, nearly three times better than the S&P 500’s return of 12.0%. Learn more about the Zacks Rank.

The Zacks Industry Rank applies this powerful indicator to the industry group level. Each of the more than 200 groups is classified based on the strength of the stocks within them.

How is the Zacks Industry Rank Calculated?
The Zacks Industry Rank is the average Zacks Rank for all companies within a specific group. For example, say an industry group contains five stocks with Zacks Ranks of 1, 2, 2, 2 and 3. The Zacks Industry Rank for this group would be 2.0, since that is the average Zacks Rank score.

Lower scores are better than higher scores. In order to get a lower score, an industry group must have a greater proportion of stocks with Zacks Rank of #1 (“Strong Buy”) or #2 (“Buy”). These are stocks with the most positive trends in earnings estimate revisions. When analysts raise their profit forecasts on multiple companies within the same group, often there is underlying factor that is benefiting the industry (e.g. greater demand, the ability to charge more, etc.). Therefore, by using the Zacks Industry Rank, you find stocks that can benefit from both favorable industry and company trends. A win-win situation.

Finding the Best Stocks in the Best Industries
The interactive Zacks Industry Rank List allows you view all of the stocks within a specific industry by simply pointing your mouse to the name of an industry and clicking on it. Zacks Rank in Industry tables are available for every industry.

These useful tables provide important details about every stock within the industry including the profitable Zacks Rank, earnings expectations, whether the company beat or missed earnings expectations and direct access to Zacks Equity Research reports.

Zacks Industry Rank List
How to Read the Zacks Industry Rank List
Industry Rank Analysis
Zacks #1 Rank List
Zacks Rank Guide
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