Zacks Index Services, a division of Zacks Investment Management, was created in 2005 in response to increased demand from product sponsors for innovative quantitative models to serve as the basis for investment products such as ETFs, UITs, and other ETPs. Zacks distinguishes itself from other niche providers by offering a comprehensive array of proprietary investment strategies that stem from extensive academic research. Most notable is Zacks Performance Rank, a quantitative stock-ranking system, which is purely mathematical and not influenced by the prognosticators on Wall Street. Today, Zacks Index Services, with more than $3 billion in assets under management from licensed products, continues to pioneer financial research and offer cutting edge investment strategies.
Zacks Investment Management, a wealth management boutique formed in 1992, is a leading expert on earnings and using earnings estimates in the investment process. We are a wholly owned subsidiary of our parent company, Zacks Investment Research, one of the largest providers of independent research in the U.S.
In 1978, Len Zacks published a seminal article which first documented the value of using earnings estimate revisions to select stocks. A few years later we originated the concept of the EPS surprise which has now become widely used in the investment industry. This work led, in 1982, to the development of the Zacks Rank, a proven, proprietary stock-ranking model which is the core of the Zacks Investment Philosophy. At Zacks, a staff of PhDs develops and refines our own proprietary quantitative models and reviews hundreds of academic investment research articles each year in order to uncover new insights into making investment decisions.
Over the past 30 years, the core of our investment management process remains unchanged. The most important fundamental factor affecting stock prices is earnings. The changes in stock values, over time, have always been attributable to earnings. Our studies of analyst estimate revisions have proven to be the most powerful leading indicator in forecasting and predicting material changes in earnings. The end result is an active management approach that has generated what we believe to be exceptional results and we will continue to adhere to this discipline in all market cycles.
