ZACKS INTRODUCES NEW 'RESEARCH EVALUATION SERVICE'; PROVIDES DATA FOR WALL STREET JOURNAL 'ALL STAR ANALYSTS 1993 SURVEY'
CHICAGO, Sept. 15 /PRNewswire/ -- Chicago-based Zacks Investment Research has formally introduced its Research Evaluation Service (RES), a service for institutional investors that will create a new standard for objectively evaluating the performance of sell side and buy side analysts. In its first application, RES data was used by the Wall Street Journal to create the "All Star Analysts 1993 Survey" published today. Zacks was hired five years ago by the WSJ to measure the performance of brokerage firm recommendations; the reports have been published quarterly in the WSJ since 1988. The survey is a direct extension of the quarterly report project. The RES database is derived from the performance of 2,500 brokerage analysts representing 170 firms over 10 years; the data is used in two separate RES services: The Zacks Guides evaluate the performance of sell side analysts; Zacks Performance Benchmarks are a new set of objective tools that evaluate internal buy side research departments. According to Leonard Zacks, president of the leading supplier of investment information services, Zacks developed RES to help money managers make more effective equity investment decisions. "For nearly 15 years, money managers have been asking us to tell them who are the best sell side analysts," explained Zacks. "Finally, two years ago, we felt we had a large enough historical database to begin to answer this question. Our efforts evolved into RES." The Zacks Company Guide ranks 2,500 sell side analysts based on two criteria: stock selection ability and EPS forecast accuracy. Specifically, for each of 4,000 companies, the Company Guide identifies the best brokerage analysts based on recommendation performance vs. an equal weight index, and EPS accuracy vs. consensus estimates. Zacks Industry Guide offers the same type of evaluation at the industry level in a format similar to the "Official Airline Guide" (OAG). This handbook ranks the top half of all sell side analysts for 68 industries based on recommendation performance vs. an equal weight index (WIN percent) since Jan. 1, 1989. "The WIN percent is a very stable measure of the skill of a single individual who's job is to make many independent judgments," Zacks said. The Zacks Guides are comprised of a separate Company Guide report for each company that a subscriber requests along with the Industry Guide handbook. Both guides are updated quarterly. Zacks Performance Benchmarks is a compilation of 210 charts that employs the same database used in the Zacks Guides. Benchmarks chart the range of performance achieved by sell side analysts, in each industry, based on the equal weighted performance of portfolios comprised of their top-rated stocks. The Zacks Benchmarks are updated quarterly. "For buy side analysts, Zacks Guides will spotlight talented sell side brokers who may be better at forecasting than at selling their expertise." "For DORs and CIOs, Zacks Benchmarks are a new tool for improving internal research departments by providing peer-based measurements of analyst performance. Together, the Guides and Benchmarks as RES will add a level of objectivity to investment research diagnostics," Zacks added. Founded in 1978, Zacks Investment Research is a leading supplier of investment information services, equity models, equity research systems and quantitative consulting. Zacks provides investment services to more than 400 institutional investors actively managing from $10 million to more than $10 billion in equities from offices in Chicago, New York and Boston. For more information about purchasing Research Evaluation Service call Andrew Ratoff at 312-630-9880. -0- 9/15/93 /CONTACT: Michelle Holland of Katzin, Inc., 312-281-7788/
CO: Zacks Investment Research ST: Illinois IN: FIN SU:
SM -- NY072 -- 2330 09/15/93 15:04 EDT
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|Date:||Sep 15, 1993|
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