Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service, which provides daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter, makes these more manageable goals. All of the features can help you identify what stocks to buy, what to sell, and what are today's hottest industries.
Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits to beat the market.
Breaking Down the Zacks Focus List
Building an investment portfolio from scratch can be difficult, so if you could, wouldn't you take a peek at a curated list of top stocks?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List Methodology
When stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.
Focus List Spotlight: Microsoft (MSFT)
Redmond, WA-based Microsoft Corporation is one of the largest broad-based technology providers in the world. The company dominates the PC software market with more than 80% of the market share for operating systems.
MSFT, a #2 (Buy) stock, was added to the Focus List on February 1, 2016 at $55.09 per share. Since then, shares have increased 431.58% to $292.85.
For fiscal 2022, 14 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.30 to $8.61. MSFT boasts an average earnings surprise of 16.9%.
Additionally, MSFT's earnings are expected to grow 8% for the current fiscal year.
Reveal Winning Stocks
Unlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research
Related Quotes
Cloud computing services started to proliferate in the 2010s, and with the tech now accepted as an essential part of business, it's completely disrupting the very fabric of the global economy. Across all industries, those companies making best use of the cloud are winning and leaving their peers in the dust.
If you have $500 to invest, you might think you're limited to stocks trading below that price, but you would be mistaken. Most brokerages allow you to buy fractional shares of a company. For those with $500 to invest right now, I suggest a fractional share of e-commerce giant Amazon (NASDAQ: AMZN).
If you own shares of the recent special purpose acquisition company (SPAC) IPO, you can thank Credit Suisse for that. Last night after close of trading, analysts at the Swiss investment bank initiated coverage of 23andMe stock with an outperform rating and a $13 price target, as reports. "23andMe offers investors a platform that enables novel discoveries into the causes and potential treatments of a wide variety of diseases at unprecedented statistical power," explained a Credit Suisse analyst.
AMC Entertainment (NYSE: AMC) captured the attention of retail traders earlier this year when it caught a meme stock wave and shot up from a low of just under $2 per share in January to a high of about $72 per share in May. At its current price in the low $30s per-share range, it has fallen by nearly 60% from its highs.
Romeo Power (NYSE: RMO) reported second-quarter revenue on Aug. 16 that was much lower than Wall Street had expected. On a net income basis, Romeo Power lost $28.7 million, or $0.22 per share, on revenue of just $926,000. Romeo Power's stock fell sharply in after-hours trading following the release of the results.
Shares of edge computing specialist Fastly (NYSE: FSLY), telehealth company Teladoc Health (NYSE: TDOC), and insurer Lemonade (NYSE: LMND) all took a hit on Monday. As of 11:05 a.m. EDT, shares of these three companies were down 4.9%, 4.1%, and 1.7%, respectively. The three companies' shares were likely primarily down because of an overall bearish day in the market.
Arcimoto (NASDAQ: FUV), a manufacturer of three-wheeled electric utility vehicles, released its second-quarter 2021 financial and business update last night, and investors are taking recent gains off the table today. After a sharp rise in the share price in the past three months, however, investors seem to be thinking any delay in the company's ramp-up isn't worth waiting out.
Robinhood Markets (NASDAQ: HOOD) recently completed its initial public offering (IPO), and the company's valuation shows that investors have high growth expectations. Its market capitalization currently stands at $42 billion, which looks massive in comparison to Robinhood's tiny profit of $7.4 million in 2020. For example, Robinhood's cumulative funded accounts have more than tripled to 18 million since the end of 2019.
Home Depot's stock gets nailed after its second quarter earnings report. Here's why.
Few investors have realized better sustained profits than George Soros. His hedge fund’s annualized returns exceeded 30% for over 30 years, and made him one of the world’s richest men. He gained fame in 1992 when he made a famous bet against the Pound Sterling and generated over $1 billion in profits in just 24 hours. While his political activities have generated controversy and criticism, no one can doubt his financial acumen. He bases that acumen on a simple aphorism: “If investing is entertai
There's no doubt that money can be made by owning shares of unprofitable businesses. Indeed, Cassava Sciences…
Shares have fallen to levels last seen more than a year ago after Chinese regulators announced new rules.
Shares of Moderna (NASDAQ: MRNA), BioNTech (NASDAQ: BNTX), and Novavax (NASDAQ: NVAX) fell 4%, 9%, and 11%, respectively, on Monday, as investors rotated out of the previously high-flying vaccine stocks. Moderna, BioNTech, and Novavax, in turn, have delivered torrid gains to their shareholders in recent months.
The stock market was down at midday on Tuesday as investors seemed to react negatively to mixed data from the economy and corporate earnings. The S&P 500 (SNPINDEX: ^GSPC) had fallen 43 points to 4,437, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) had declined 192 points to 14,602. Shareholders in both (NASDAQ: MNDY) and Sea Limited (NYSE: SE) were pleased with the results their respective companies announced.
Warren Buffett revealed more exposure to consumer stocks as Berkshire Hathaway posted its 13-F for the second quarter of 2021.
We can readily understand why investors are attracted to unprofitable companies. For example, NanoVibronix…
Baidu's (NASDAQ: BIDU) stock slumped on Aug. 12 after the Chinese tech giant posted its second-quarter earnings. The company beat analysts' estimates on the top and bottom lines, but its third-quarter guidance was softer than expected and indicated its core business was slowing down again.
China is home to the world's second-largest economy, and internet company Alibaba Group Holding Limited (NYSE: BABA) is one of China's most dominant businesses. Down more than 20% over the past year, Alibaba could prove to be a bargain for patient investors if they can look past a major red flag. Here are three reasons to buy Alibaba and one reason to sell it.
Investors and analysts are bullish on the S&P 500. But they're starting to severely call out individual stocks for running up too much.
See who joins Williams-Sonoma, BABA stock on this screen of Warren Buffett stocks based on the investing strategy of the Berkshire Hathaway CEO.


Por redditxxx