Tip #2: Use the Industry Rank to Find Top Stocks that have Outperformed 2 to 1. Today, let's go over another great benefit that like the Zacks #1 Rank List and Style Scores, will give you an edge in improving the performance of your portfolio: Zacks Industry Rank. It's no secret that 50% of a stock's price movement can be attributed to the industry group it's in. In fact, studies have shown that just getting into an average stock in a strong industry is likely to outperform a great stock in a poor industry. But why settle for average when we have a tool that will help you find the best of the best stocks? The Zacks Industry Rank does just that by sorting companies into more than 250 industry groups. We then calculate the average Zacks Rank for all of the stocks in the industry and rank the industries into two groups:
Over the last 10 years, the top half beat the bottom half by a factor of more than 2 to 1. That kind of serious outperformance is why so many investors use this powerful tool for their stock search.
Now that you've uncovered top stocks in the top industries, you can easily add them to your portfolio tracker on Zacks.com. If you haven't yet set it up, you can do it in just a few minutes.
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