New "Whisper" Stock Strategy Predicts Earnings Surprises with 77.96% Accuracy

Sept. 14, 2010 - PRLog -- Chicago, IL, September 14, 2010 – After a three-year quest, the Zacks Investment Research team has announced their discovery of the Stock-Picker's Holy Grail. For generations, statisticians tried in vain to reliably detect positive earnings surprises before they're reported. The breakthrough was established on August 18, 2010, when the Zacks team ran final tests on a strategy that pinpoints companies set to report positive surprises leading to a sustained stock price spike.

The team isolated two little-used factors that identify only the analyst "whispers" that most accurately foretell a surprise. Each works reasonably well by itself.  But when they're put together and combined with Zacks Rank data, the impact is a statistical explosion.
This Whisper Trader strategy was back tested from February, 2001 through May, 2010, a period that included two recessions and many corrections. During this time, the market lost an average of -0.3% per year. Yet, the new whisper-based strategy shows off-the-charts gains of +62.1% per year.  

Learn more about the new Whisper Trader: http://www.zacks.com/registration/whispertrader/welcome/?...

About Zacks Investment Research

Zacks Investment Research was formed in 1978 by Leonard Zacks. As a Ph.D. in Mathematics, Len established that "earnings estimate revisions are the most powerful force impacting stock prices." He used this fact to create a proprietary stock picking system, the Zacks Rank, which continues to outperform the market by a 3-to-1 margin.
Investors are invited to unlock the profitable stock recommendations and market insights of Zacks Investment Research through its free daily email newsletter, Profit from the Pros. It generates a steady flow of profitable ideas and four free Zacks #1 Rank "Strong Buy" stocks every weekday. Register for your free subscription to Profit from the Pros at http://www.zacks.com/registration/pfp/?ALERT=PR&ADID=PR_A....

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact Information:
Tim Pendell
Product Manager
Zacks Investment Research
Phone: 888-775-8348
Email: whispertrader@zacks.com
Visit:  http://www.zacks.com

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Zacks Investment Research is an investment research firm that provides institutional and individual investors with financial news, analytical tools and services.