About Zacks - Piper Sandler
[Pages:2]About Zacks
Zacks Investment Research was founded in 1978. The firm provides products and services to both institutional and retail investors. Its institutional products include the Zacks Research System, a series of databases accessed by nine different software applications and which incorporates three different quantitative models. It also provides tools to companies to manage their investor relations activities.
Zacks provides free market information on its Web site and offers a service for individual investors that has one-page Zacks Snapshot reports, as well as the full-length research reports that are being offered by Piper Jaffray.
The firm operates Zacks Investment Management (ZIM), a registered investment advisor that manages money for individuals and pension funds. Compliance procedures are in place to ensure that ZIM does not receive preferential treatment in the receipt of ratings changes from the research department.
Data, Web hosting and research delivery technology services are an important part of the company's offerings. It also tracks the performance of brokerage analysts and provides related services.
The firm's Web site is at .
Equity Research and Methodology
While Zacks has been providing equity research ratings since its inception, the type of research reports being provided to Piper Jaffray clients were created in 2002. The firm has a hybrid approach to research that it describes as "model guided." The Zacks Rank, which is used to quantitatively assess the attractiveness of a stock's prospects, is primarily based on an analysis of the changing patterns of earnings estimates for a company. The Zacks Rank starts the analytical process and guides the work of the senior research analysts at the firm. The research analysts are free to look at other factors and to disagree with the Zacks Rank when producing their reports and ratings.
Ratings System
Stocks are ranked by the analysts with the following rating system:
Buy
Zacks expects that the subject company will outperform the broader
U.S. equity market over the next quarter. It is recommended that
investors buy the securities at the current valuation.
Hold
Zacks expects that the company will perform in line with the broader U.S. equity market over the next quarter. It is recommended that investors maintain their position and add on weakness as the valuation or fundamentals become more favorable.
Sell
Zacks expects the company to underperform the broader U.S. equity
market over the next quarter. It is recommended that investors reduce
their positions until the valuation or fundamentals become more
compelling.
The Zacks approach of identifying the securities with the most attractive nearterm prospects results in a relatively large proportion of "hold" recommendations, with a smaller percentage of action-oriented "buy" and "sell" ratings.
Additional Information
All materials produced by Zacks represent its views and not those of Piper Jaffray. The research is intended for the sole use of Piper Jaffray clients in the United States and may not be redistributed to third parties.
All information in research reports produced by Zacks Investment Research is Copyright Zacks Investment Research, Inc. All Rights Reserved.
This information was prepared by Tom Brakke, CFA, an independent consultant operating on behalf of Piper Jaffray under the terms of the Global Research Analyst Settlement. Zacks has reviewed the content for accuracy.
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