What are Zacks number 1 rated stocks?

Written by Editorial Team | Last Updated: August 2026

Zacks Number 1 rated stocks, officially known within the platform as Zacks Rank #1 (Strong Buy) equities, are companies that have demonstrated the most compelling upward revisions in their forward earnings estimates by professional brokerage analysts. The quantitative model driving this rating system is built on four core foundational pillars: Agreement, which measures the percentage of analysts raising their estimates; Magnitude, which evaluates the actual size of the earnings projection increase; Upside, which calculates the difference between the most accurate recent estimates and the broader consensus; and Surprise, which looks at a company's historical track record of beating quarterly earnings expectations. Out of thousands of publicly traded companies tracked by the firm, only the top five percent earn this elite Number 1 rating at any given time. Consequently, the list is highly dynamic, frequently rotating in and out companies based on the latest macroeconomic trends, industry-specific tailwinds, and corporate financial disclosures. Investors rely on this data-driven metric as a powerful screening tool to filter out market noise and focus strictly on fundamental earnings momentum.

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