October 2, 2021

Motley Fool vs Zacks


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Comparing Motley Fool vs. Zacks can be a tough choice both offer excellent services, but which is suitable for you?

The Motley Fool Stock Advisor has been in circulation for nearly 20 years and is one of the longest-running stock picking services that provide personalized stock picks. This trusted service is popular among individual investors because it offers a strategy that's easy to follow, without any complicated formulas or inside jargon. The advice provided by this service helps customers make informed decisions about their investments to maximize returns while limiting risk.

The Zacks Premium Newsletter offers buying and selling recommendations on stocks within various sectors, including healthcare, technology, financial services. They offer stocks with high upside potential and provide safety if the market takes a turn for the worse.

The Motley Fool vs. Zacks Investment Research Overview

Whichever service you decide to go for, you will undoubtedly benefit from than if you were to go out on your own. Both Motley Fool stock advisor and Zacks Premium boost their returns vs. the S&P 500. With the Motley Fool Stock Advisor clearly showing returns right back until they began in 2002, backing up a long-term investment strategy is king.

About The Motley Fool

motley fool stock advisor review

The Motley Fool is a financial services firm that was founded in 1993 by Tom and David Gardner. The firm's websites, podcasts, books, newspapers, radio shows, and premium investing services assist millions of people in achieving financial independence.

They began by researching themselves and advising friends, then proclaimed to the world that they could do more. Their mission is simple:

"TO MAKE THE WORLD SMARTER, HAPPIER, AND RICHER"

Tom and David Gardner, Motley Fool

Want to know more? Check out Motley Fool Stock Advisor Review

What is the Motley Fool Stock Advisor?

Stock Advisor is a premium service that aims to increase the number of individuals who invest. It's one we've used at MeMoreMoney and found to be an excellent service.

The Stock Advisor service claims to beat the returns of the S&P 500 by selecting high-growth stocks that are set to outperform the overall stock market.

is motley fool worth it_

Since its inception, and when writing this review, the Stock Advisor service has 624% returns on its stock picks vs. the S&P 500 of 137%.

The Motley Fool Stock Advisor is easy to use. The company tells you the recommended stocks, and you buy them from your broker of choice.

You can follow the stocks on the Fool Stock Advisor site, which means if they ever go to 'sell' status, Fool will email you and let you know.

You get new Motley Fool Stock advisor picks sent to you by email each month. There is always a variety and a detailed report so you can decide what is best for you.

To summarise, Stock Advisor is a service, not a broker, to guide you with their research to save you time wondering which stocks to pick. 


About Zacks Investment Research

zacks vs motley fool

Zacks' company is built around the idea that when professional analysts say what a company's earnings will be, it significantly affects how much their stock price changes.

The Zacks Investment Research was founded in 1978 by MIT Ph.D. Len Zacks applies a layer of simple quantitative analysis to stock recommendations and mutual funds, exchange-traded funds (ETFs), and even options.

For those who don't enjoy complexity, Zacks' rankings are based on a simple one-to-five scale. In a nutshell, Zacks prioritizes fundamentals and timing; it aims to provide fundamental analysis with both short-term trading recommendations and long-term investing guidance.

Zacks' recommendations are based on research from its team of analysts. The study covers 1,050 stocks.

How Both Services Work

Now you understand a bit more about each company it is also good to understand exactly how each service works and what you get for your money!

How The Motley Fool Works

Motley Fool Stock Advisor works through a combination of email newsletters and its Stock Advisor members-only website.

New Members of Motley Fool can benefit from a further members discount. Here is what you get for the service:

Recommended Starter Stocks

Motley Fool Starter Stocks

The Stock Advisor includes starter stock recommendations from the Motley Fool, consistent performers over many years. This is precisely what you need when you're new! The Motley Fool team advises you to get at least 25 different stocks. This is so you spread your net wide to minimize your risk.

Two New Stock Picks Each Month

Motley Fool Stock advisor email updates

The backbone of the service, each month, you are sent two new stocks. I've found this to work great with my monthly income and working investing into my routine. Each month I log into Motley Fool Stock Advisor to see the picks and decide to invest in them.

Independent Research report

Motley Fool research reports

Along with your stock picks, you will also receive a detailed summary. A summary of what the company does, Key financial statistics, Why Motley Fool likes the stock, A 1-minute summary: If you are in a hurry, you can see the main overview super quick! Best reasons to buy the stock now and Potential business risks. The decision to buy a stock is always, of course, on you, but Motley Fool lays out the facts so you can make an informed decision.

Best Buys now

On top of the monthly stock picks, you also are given ten timely buys chosen from over 300 stocks. These could be stocks that have previously been recommended that Fool has seen are worth buying more off. You won’t see ETF or mutual funds recommendations in Stock Advisor. 

Stocks to Buy Now

Best Stocks to buy now is a great feature. You can log in any day of the week and find out which are the best stocks to buy now. You can even search by stock prices if you are buying stocks on a budget.

Follow Your Stock Picks

If you decide to go for motley fool stock picks, you can now follow them on Motley fool's Stock Advisor website. This is an excellent addition to the service and will help Motley Fool's service to you as any stock you tell Fool you are following will use to email you and tell you if you need to buy or sell. Like having your wall street advisor!

The flagship Stock Advisor newsletter costs $199 a year but is available for $99 the first year to new members.

stock advisor motley fool

How Does Zacks Investment Research Works

Zacks offers three service levels, with the most common being Zacks Premium, which costs $249 per year and gives users three Rs: recommendations, ranks, and reports. Subscribers may use the My Portfolio Tracker tool to see their portfolios' Zacks ratings right away.

Zacks offers three types of service, but most people will need the Zacks Premium newsletter. It costs $249 a year and provides three types of information: Recommendations, Rankings, and Reports. You can put your portfolio into the My Portfolio Tracker tool and see the ranking for each security.

Overview of Zacks Premium

  • The Zacks premium will automatically send you breaking news and update your securities’ rankings every trading day.
  • With Zacks premium, you get access to zacks one rank. Zacks 1 rank list is a private list is made up of Zacks Rank #1 (Strong Buy) stocks - the top 5% with the most potential.
  • A rank of one means that the company is good. It means you should buy it. A rank of five means that the company is terrible and you should sell it.
  • Zacks only ranks about 5% of all equities, and stock must receive both a fundamental analysis endorsement and several professional analysts' earnings projections have been raised to be ranked No.1.
  • Zacks offers analyst ratings around just about every other major stock on a scale from 1-5. An algorithm grades stocks as value, growth, or momentum on an A-F scale. The same ratings are also available for more than 19,000 mutual funds.
  • Zacks is justifiably recognized for its disinterested views based on quantitative analysis, and there is no hesitation in selling a stock. This implies Zacks offers both long and short recommendations.
  • Covers mutual funds and ETFs: if you are looking for mutual fund advice backed with research reports, then Zacks could help you.
  • Zacks rank ranks stock picks from 1-5 to help beginner investors easily sort through stocks.

According to the firm, Zacks' long-term investing perspective and fundamental analysis are supposed to provide subscribers with an edge. A collection of analytical tools completes the package, and Zacks also has a Focus List of 50 stocks for long-term performance.

Like Motley Fool Zack also offers over premium services such as:

  • The Investor Collection is designed for long-term investors. This service, which costs $59/month or $495/year, includes real-time buy and sell signals from the company's long-term investor portfolios. It also provides stocks under the $10 strategy.
  • Zacks Ultimate costs $299 per month or $2,995 per year and includes all of the above and market insights and "private picks" from all of its portfolio suggestion services, even those closed to new investors. Ultimate provides approaches (known as "investment techniques") and portfolios (known as "investment tactics") to help investors. However, you would have to be investing a lot of money to benefit from this service.
  • Zacks also provides a trading platform that combines comprehensive services with low-cost fees, allowing you to conduct your research and trade all in one location.

Related article: Best Investing Books

Who Should Use The Motley Fool and Zacks?

Anyone who wants to get into the stock market should consider using a stock picking service.

Trading services can be beneficial for new and experienced investors. If you want to influence your average return and get strong sell recommendations and strong buy recommendations, then either of these services would be good.

Zacks vs. Motley Fool: Cost Comparison

When deciding between Motley Fool vs. Zacks, of course, the cost is a big factor in any decision. You need to be able actually to afford the service!

The good news is as a new member of Motley Fool. You benefit from a new member's discount! For the first year, you get it for just $99 instead of the normal price of $199.

How much is Motley Fool Stock advisor

With Zack's premium, the service is more expensive, setting you back $249 per year.

Motley Fool's stock advisor is one of the cheapest stock trading sites. The cost of the device is around $199 per year, but it's easy to find a discount to get them up to just $99 the first year. Zacks Premium comes at 249 dollars per year. This is to say. Both services are affordable and fairly priced.

Similarities Between Stock Advisor and Zacks Premium

Zacks Premium and Motley Fool have a few similarities that should be noted. Both Motley and Zacks premium provide detailed stock picks based on fundamental analysis and give you research reports to back up that. You will never be lonely by signing up for either service, as both are adamant about providing daily emails, follow-up suggestions, and breaking news.

  • The Motley Fool and Zacks provide a wealth of free material and lessons. Their websites offer step-by-step instructions on utilising their services and give prospective buyers a good idea of what to anticipate from their membership.
  • Both provide research reports helping you decide for yourself. As we all know, capital is always at risk when investing, and the risk sits with you. Hence, whatever service you decide to use, it's always good to read the research and decide if the stock pick is right for you.
  • Over long periods of time, the Motley Fool and Zacks have spectacular track records of outperforming the S&P 500.

If you're still confused about which firm to choose, Stock Advisor and Zacks Premium have a free 30-day trial (they will refund your money if you are unhappy with the service).

Motley Fool vs Zacks: Which is better?

The Stock Advisor by Motley Fool is ideal for those investors that need stock picks that can perform the market. This service is beneficial for self-investing that prefers to do their research. It's just 99 for the first year. Zacks is about “rankings” versus explicit investment picks. The winner will depend on your personal preference, and it will be hard to label a clear winner since both services utilize a unique approach to stock analysis. Motley Fool is the winner simply as simple and economical as its product.

Where Zacks Trade Falls Short

Zacks Trade charges a penny to share, but lots of brokers have free trades available. Zacks uses trading tools such as the ib trading app. If you're a self-starter looking for the best trading deals, consider Interactive Brokers. If you want to talk with a broker that does live trading on a virtual or live trading platform, consider purchasing from zacks. Find out more on Zacks's website here. Return to the page you came to.

Should I use the Motley Fool or Zacks?

The Motley Fool is great for first-time investors or those wishing to focus their portfolios on all or part of theirs. Zacks appeals to more advanced investors, e.g., investors whose investments horizon is less than three to five years. The Motley Fool offers fundamental analysis to stocks where Zacks' earnings estimates have been raised or decreased.

Track Record

Zacks Premium guarantees a refund to investors whose portfolios perform under the curve of the S&P 500 through use. Keep in mind this performance is based upon the whole #1 rating. The Motley Fool has a shorter track record with an impressive record.

Since 2002 the service of the pick had received a rise of more than 500%. In fact, most investors don't match the portfolio performance of their own service's number of first ranking lists in the year. It's not necessarily indicative of the returned investments in the.

Stock Advisor vs. Zacks Premium: Stock Picks

The stock advisor and Zacks Premium were created for investors to help them choose better stocks. Both services are aimed at helping to invest find stocks to outmanoeuvre the market. They do it differently.

Motley Fool Vs. Zacks: Conclusion

Both Motley Fool Stock Advisor and Zacks offer great value for money if you look for a good stock picking service. Both have a great track record of offering solid picks that have, according to their records, beat the S&P 500.

Which should you go for? This article has given you all the insights to decide for yourself and summarise some of the key points.

Go for Motley Fool Stock Advisor if:

  • You are a new member as it is the best value at just $99 for new members.
  • You want a user-friendly site. The site navigation is significantly easier to use than Zacks.
  • Want to follow your stock picks and get daily advice and recommendations.
  • Want to get growth stocks and up and coming stocks.
  • Want detailed research reports with your stock picks.
  • Are not interested in mutual fund stock advice.
  • You believe in long-term investing.

Go for Zacks if:

  • You want advice based on wall street analysts
  • Want a stock-rating system to review stocks on your own.
  • Are trading short term.
  • Can afford to spend $249 a year.

I hope this article helped you make a decision. Let me know in the comments which service you decided to go for. 

About the author 

Mary Elizabeth

Founder of MeMoreMoney. A self-taught finance nerd, learning by doing and experiencing. Bought first house at 21, paid off student debt, and save 100k by 30. Featured Personal Finance Expert in GO Banking Rates and Yahoo! Finance

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