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ICA Wizard User Manual

1. Russell 2000 Growth Index plot The Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price to book ratios and higher forecasted growth values Russell 2000 Value Index plot The Russell 2000 Value Index measures the performance of those Russell 2000 companies with lower price to book ratios and lower forecasted growth values Russell 2500 Index Total Return plot The Russell 2500 Index measures the performance of the 2 500 smallest companies in the Russell 3000 Index which represents approximately 22 of the total market capitalization of the Russell 3000 Index Russell 2500 Growth Index plot The Russell 2500 Growth Index measures the performance of those Russell 2500 companies with higher price to book ratios and higher forecasted growth values Russell 2500 Value Index plot The Russell 2500 Value Index measures the performance of those Russell 2500 companies with lower price to book ratios and lower forecasted growth values Russell 3000 Index plot The Russell 3000 Index measures the performance of the 3 000 largest US companies based on total market capitalization which represents approximately 98 of the investable US equity market Russell 30006 Growth Index plot The Russell 30006 Growth Index measures the performance of those Russell 3000 Index companies with higher price to book ratios and higher forecasted growth values The stocks in
2. Change Sales Q 5 O 6 Chanae Sales fIl A1 CL RI EI Save As Cancel To create a new Ratio Set open the Tools menu select Ratio Set Editor command or click the Ratios Editor button The Edit Ratio dialog box will appear To create a new ratio set file enter the ratio set name in the File name box then click Yes A Ratio Set Editor dialog box will be displayed the will be empty From the Full Ratio List section select a category A list of available ratios from that category will be display in the Ratios section Highlight a ratio from the Ratios list Use the scroll bar to view all available ratios If this ratio set file will be used with the Company vs Industry Analysis reports as well select a specific benchmark for each ratio or the default benchmark will be ndustrv To add a selected ratio click lt lt Add The ratio will display in the Ratio Set section ratios will be added to their corresponding categories To delete all ratios click Clear Be sure to save after completing ratio set Doc To Help Standard Template Editing Ratio Sets Ratio Set Editor zir INPUTS Yalue txy Ix m Ratio Set m Full Ratio List lt lt Add Categories Fundamental Ratios A Fundamental Ratios Operating Margin 12 Months vs Industry gt gt Remove Broker Recommendations Chg in Oper Margin 12 Mo 5 Yr Avg vs Industr EPS Momentum Return on Assets 12
3. Russell Top 2007M Growth Index plot The Russell Top 2007M Growth Index measures the performance of those Russell Top 200 companies with higher price to book ratios and higher forecasted growth values The stocks are also members of the Russell 1000 Growth index Russell Top 200 Value Index plot Russell Top 200 Value Index measures the performance of those Russell Top 200 companies with lower price to book ratios and lower forecasted growth values The stocks are also members of the Russell 1000 Value index Standard amp Poor s Indices Copyright 1999 The McGraw Hill Companies Inc S amp P 100 Index plot The S amp P 100 Index measures large company U S stock market performance This market capitaliztion weighted index is made up of 100 major blue chip stocks across diverse industry groups S amp P 1500 Index plot The S amp P 1500 Index also known as the S amp P SuperComposite 1500 is a combination of the S amp P 500 MidCap 400 and SmallCap 600 Indices The S amp P SuperComposite 1500 represents 87 of the total U S equity market capitalization S amp P MidCap 400 Index plot The S amp P MidCap 400 Index measures the performance of the mid size company segment of the U S market S amp P SmallCap 600 Index plot The S amp P SmallCap 600 Index measures the performance of the small size company segment of the U S market S amp P 500 Total Return plot The S amp P 500 Index is widely regarded as the s
4. Price Charts for Multiple Companies You can view prices for two or more companies on the same chart You may choose to compare stock prices or their percent difference If you choose to compare the percent difference the right axis displays the relative percentage change in the stock price There are two ways to view two or more companies price charts To compare the relative performance of two or more stocks use the Compare Stocks menu or select Chart Settings from the Chart menu Price Action e 15 16 e Price Action Using Chart Settings Option to View Price Charts for Two or More Companies In bie es Qal Combe lum Bee SS Oe oo To display a chart follow these steps 1 Select a company ticker from the tickers drop down menu located to the left of the Get Report button 2 Open the Chart menu choose Chart Settings then select either Current Settings or New Settings The Chart Options dialog box will appear 3 Click the Overlay List tab then click the Add button The Select Overlay Type dialog box appears The Current Ticker box is checked de select it 4 Select Company Price and Absolute radio buttons then click Next The Select Ticker dialog box will be displayed 5 Enter the ticker symbol or select the ticker in the list Click Next to modify price chart colors style and markers then click OK The option to modify the right axis scale to Percent Difference Scale will
5. Business Description amp Management Discussion Reports Insider Trading data Brokerage Research reports and their abstracts Overview e 3 Guided Tour 4 e Guided Tour Getting Started in ICA Dn lis e De Comes oc Tei Ge Using ICA is simple The layout is organized in a way that allows you to begin the analysis of a company the moment you start the application A default list of companies Ticker List loads automatically when ICA starts and a price chart is displayed To display a new report just click the report button from the ICA Reports Access Toolbar After specifying a report ICA will display the name of the current report in the Title bar along with the ticker symbol Parts of ICA Screen The following is a description of ICA screen elements Title Bar the top bar of the ICA window Menu Bar the list of menu names displayed below the Title bar of ICA ICA Reports Access Toolbar the bar containing ICA components access buttons for corresponding reports ICA Report buttons Aggregates Indexes Ratios Editor EJ Companies Ticker Menu the drop down list of companv aggregate or index tickers located to the left of the Get Report button Internet Reports Menu the bar containing a pull down menu of Internet base reports as well as the Get Report button Doc To Help Standard Template Doc To Help Standard Template Single Ticker Look Up To access any of the ICA reports for a compan
6. Historical Peer Analysis Charts 51 Working With Ratio Set Editor 52 Internet Based Reports 54 Using Internet Based Reports nanna rna nrnnnn mnn mnn nn 54 Fundamental Reports nanna ERREEN Esai 54 Income Statement Balance Sheet and Cash Flow tables 54 Return on Equity Reports nanna nanna mnn 54 Risk Rating Bankruptcy Reports nn nnnan anna 55 Business Description A Management Discussion Reports ccccccceeeeeeeeeeeeeeeeees 55 Business Descriptions Reports nanna 55 Management s Discussion and Analysis Reports ee 55 Insider Trading Report sirrane a E EEEa EEA 55 Brokerage Research Reports and Their Abetracls ennenen 55 Appendix 56 Company OVerlay Sasann iniiao inne a E AEAEE RAESTE 56 Fundamental Overlays AA 56 Index OverlaVS sccatoiesesetacececedetetacetagatesadetetacatagadesatetetasetacadesadesseeteeeivnieieiys 57 Z cks Chart B L 37 aj f g l 61 Zacks Sector and Industry Desionations smart nn 63 Zacks X Expanded Sector Groupe 63 Zacks M Medium Industry Groupe nn nanna nata 63 Zacks X Expanded Industry Groups e nnnnnnnnnnnnnnnnnnnnn na 64 Estimates Report Methodologie 65 Technical Support 67 Glossary of Terms 69 Index 71 2e Doc To Help Standard Template Overview Doc To Help Standard Template Introduction Integrated Company Analysis ICA is a powerful tool for examining stocks using customized charts graphs and reports This p
7. MM YYYY format for example 12 2000 An up or down arrow next to the estimate indicates a recent estimate revision The direction of the arrow indicates a change from the previous analyst s estimate Estimates made by the Most Accurate Analysts are shown in red You can click the MM YYYY heading to sort the column Date of Annual EPS Estimate The Date column shows the date of the current fiscal year estimate A blue rating date indicates the most recently released analyst EPS estimates Click the Date heading to sort the column Next Fiscal Year Estimates Analysts EPS estimates for the next fiscal year are listed in the Annual Estimates section in the column headed by the month and year MM YYYY the company s next fiscal year will end An up or down arrow next to the estimate indicates a recent estimate revision The direction of the arrow indicates a change from the previous analyst s estimate Estimates made by the Most Accurate Analysts are shown in red You can click the MM YYYY heading to sort the column Date of Annual EPS Estimate The Date column shows the date of the next fiscal year estimate A blue rating date indicates the most recently released analyst EPS estimates Click the Date heading to sort the column Quarterly Estimates The Quarterly EPS Estimates section lists all analysts EPS projections for the current and next fiscal quarters Current Fiscal Quarter Estimates The leftmost column of the
8. The company s ticker symbol e Company The company name e Industry One of more than seventy industry groups These groupings represent an aggregation of the over 200 industry categories under which Zacks records data Last Update The date of the database update Zacks Rating The Zacks Rating is based on our proprietary model that uses earnings estimate revisions and earnings surprises to predict short term price movements Stocks are rated as a Strong Buy Buy Hold Sell or a Strong Sell These ratings have shown to be an accurate predictor of stock price performance relative to market for the coming 90 180 days as oppose to Doc To Help Standard Template Doc To Help Standard Template the analvst s long term predictions that usuallv represent a 6 12 month outlook The Zacks Rank is also a relative measure comparing stock against the entire universe of stocks and the distribution of ranks reflects this approximately 20 of stocks are ranked Buy or Strong Buy 60 of stocks are ranked Hold and 20 ranked Sell or Strong Sell Analyst Broker Analyst Under the Analyst heading is a list of the names of the individual analysts An analyst name listed as Not Ident means authorization is needed to view the name Click the Analyst heading to sort the column Broker Under the Broker heading is a list of the names of the brokerage houses and independent research institutions that currently employ the analyst A broker name
9. To add a new ratio to the Ratios Set from the Full Ratio List section select a category A list of available ratios from that category will display in the Ratios section Highlight a ratio from the Ratios list Use the scroll bar to view all available ratios To add a selected ratio click lt lt Add The ratio will be displayed in the Ratio Set section ratios will be added to their corresponding categories To delete all ratios click Clear When the ratio set is complete select the Save As button to save the ratio set file under a new name choose Save to overwrite the existing file Selecting Ratio Sets The Select Ratio Set option allows you to specify a new default ratio set file txv To select a new default ratio set open the Tools menu click Select Ratio Set The Select Ratio Set dialog box will appear Select a new default Ratio Set file then click Open Doc To Help Standard Template Peer Analysis e 53 Internet Based Reports 54 e Internet Based Reports Using Internet Based Reports Before vou displav a report select a companv from the Companv Ticker List To displav a report Select a companv from the Tickers pull down menu located to the left of the Get Report button Choose a report from the Internet Reports menu then click the Get Report button ICA will launch vour browser in a new window and the report will be displaved To switch between your browser and ICA click the ICA s button on the Window
10. provide an excellent benchmark for extended fund managers Wilshire REIT Index plot The Wilshire REIT Index includes Total Returns for the Wilshire Real Estate Securities sub index the REIT Index which represents U S publicly traded Real Estate Investment Trusts Wilshire Style Indexes Wilshire Asset Management s indices are derived from the largest 2500 securities the Top 2500 of the Wilshire 5000 Equity Stock index The Large Company Universe The large company universe the Top 750 consists of the largest 750 companies in the Wilshire 5000 and extends down to approximately the 1 8 billion market capitalization level The Small Company Universe The small company universe the Next 1750 consists of the remaining securities in the Top 2500 and extends down to approximately the 244 million market capitalization level Creating the Individual Indexes By screening each universe quarterly for all companies which embody the characteristics of each style Wilshire creates its Style Indexes three of which are included as overlays in ICA Large Cap Growth Index plot Large Cap Value Index plot and Small Cap Value Index plot Key Variables Key variables used by the value index include price earnings ratio price to book and yield Variables employed for the growth index screenings include sales growth return on equity and dividend payout Zacks Chart Definitions Price amp Surprise This chart shows whethe
11. Broker Analyst Under the Analyst heading is a list of the names of the individual analysts The analyst name listed as Not Ident means authorization is needed to view the name Click the Analyst heading to sort the column Broker Under the Broker heading is a list of the names of the brokerage houses and independent research institutions that currently employ the analyst The broker name as Not Ident means authorization is needed to view the name When the Broker column has the CO FORECAST entry it identifies the company s own estimates for the earnings Doc To Help Standard Template Doc To Help Standard Template Click the Broker heading to sort the column Quarterly Estimates The Quarterly EPS estimates section lists all analyst EPS projections for the current and next fiscal quarters Current Fiscal Quarter Estimates The leftmost column of the Quarterly Estimates section displays the latest estimates for the current fiscal quarter The column s heading displays the month year the current fiscal quarter will end in the MM YYYY format for example 03 2000 An up down arrow next to the estimate indicates a recent estimate revision The direction of the arrow indicates a change from the previous analyst s estimate Estimates made by the Most Accurate Analysts are shown in red Click the MM YYYY heading to sort the column Date of Quarterly EPS Estimate The Date column shows the date when the current fiscal quart
12. Company Ticker Company Fundamental Relative Add new Aggregate Ticker Add new Aggregate Price Absolute Add new Aggregate Price Relative Add new Aggregate Fundamental Absolute Add new Aggregate Fundamental Creating New Chart Definitions There are unlimited possibilities in creating new chart definitions With Company Overlays you can view the sensitivity of a stock to the various fundamental ratios compare a stock s price and fundamentals against any industry sector or S amp P 500 When selecting overlays you can view them for the active ticker or any other company aggregate or market index Adding Fundamental Overlays To view whether the stock price responds to the changes in the company s fundamentals you can add the fundamental overlay To add the Fundamental overlay for the active company ticker select a company ticker from the Ticker pull down menu located to the left of the Get Report button Open the Chart menu choose Chart Settings then New Settings The Chart Options dialog box will appear Click the Overlays List tab then click Add The Select Overlay Type dialog box will appear leave the Current Ticker box marked Select Fundamental then Absolute options by clicking the radio buttons then click Next The Select Overlay s dialog box appears click an overlay to view its description in the description box Doc To Help Standard Template Doc To Help Standard Template Highlight an overlav t
13. Error Top Quartile Performance An asterisk next to the analyst s estimate denotes a margin of error in the top 25 percent of all analysts Observed when analyst s error is less then consensus error Estimates e 39 Consensus Error The report also includes the consensus error for each quarter Consensus Error is the difference between the consensus estimate for the quarter and the actual quarterly EPS 40 e Estimates Doc To Help Standard Template Snapshot Overview Zacks Company Report as of 06 18 99 Next EPS Report Date 08 10 99 en INTERNET SERVES Type Large Growth Rec Pricej PE Mkt Cap Div Hate Yield Sales 12Mo Pe Gr JEPS Gr iiao 2650 siavezama soon 00 aen tore roe America Online Inc is a provider of online services to consumers all over the world The company offers subscribers a wide variety of services including electronic email conferencing news sports weather stock quotes software computing support and online classes These services can be accessed from a range of personal computers using the company s proprietary software Price olume Data EPS P E and Growth Rates rr 52 Wk High 167 50 FY EPS PE EPSGr Low 20 49 JGMBAct 0 16 169 6 Broker PriceChg YTD 45 699Est 0 35 322 9 124 Recommendations YTD Rel 32 0 57 197 8 63 Avg Div Vol 25281 000 tast 5Yr Exp Retum Risk impi Ret ild Gr 51 12 Beta 4 2 50 Shareholder Data
14. Months vs Industry Clear Price Momentum Return on Equity 12 Months vs Industry Debt Total Capital Most Recent vs Industry Rec Tumover 12 Months vs Industry Benchmark Broker Recommendations Industry Raos Average Broker Rating 1 5 vs Industry Wa Rating Buy Str Buy vs Industry ector Historical Growth tt Rating Upgrades 4 Weeks vs Industry C S amp P 500 Book Share Growth Last 5 Years Fs iil Rtg Total 4 Weeks vs Industry C Number Peg eat alr oe omentum Change F 1 Est 12 Weeks vs Industry IS Annual Sales Growth Change FIZ Est 12 Weeks vs Industry Annual Sales Growth F QJ F 1 Price Momentum Sales 12 Month Trailing Growth Change Price 4 Weeks vs Industry Current Price vs 52 Week High vs Industry 12 Mo Sales this Qtr vs 12 Mo Sales 4 Q 12 Mo Sales last Qtr vs 12 Mo Sales 50 Growth Rates Quarterly Sales Growth qtr prior gtr Dividend Growth Last 5 Years vs Industry zj Change Sales Q 5 Q 6 ka E lee Remit sat E Vasra ban Lech zebed Channe Sales DLAUDLP Save Save As Cancel asp Ge To edit a previously created Ratio Set open the Tools menu select Ratio Set Editor or click the Ratios Editor button The Edit Ratio dialog box appears select a file then click Open A Ratio Set Editor dialog box will display To remove a ratio from the list highlight a ratio from the Ratio Set list then click the gt gt Remove button
15. Number of Buy Ratings Issued by the Analyst Industry Return The average of the equal weighted industry returns calculated for each of the holding periods during which a buy rating was is effect Excess Return An approximation of a wealth index Excess Return reflects the difference between the average return calculated for the analyst s buy recommendations and the average returns of the equal weighted industry index for the period during which the recommendations were in effect This measure is only calculated on the analyst s buy ratings In the case of ties Excess Return is used as a secondary basis for the ranking Excess Return evaluates what an investor s profit could have been if he or she had diligently acted upon the analyst s buy recommendations Doc To Help Standard Template Technical Support Zacks Technical Support is available 7 a m to 5 p m Central Time Mondav through Friday excluding market holidays You can reach Zacks Technical Support at Phone 800 767 3771 Select option 9 Fax 312 630 9898 Internet E mail ZRShelp zacks com Please provide a detailed description of the problem s you encountered in which wizard module when they occurred and any error messages you received For more information about Zacks Investment Research visit our Web Site at http zrs zacks com Doc To Help Standard Template Technical Support e 67 Glossarv of Terms Doc To Help Standard Template Active Ticker A tic
16. OO Shares Out 1027 4 MMINet Margin 17 STR BUY HOLD SELL STR institutions 6 53 16 ROE 21 8 10 2 Insiders LT DebtiCap 12 FY End Data Quarter End Data Projections FY End Data Ce 2 00 160 147 00 1 50 L a 140 120 00 JA 109 oso pe near sicaccienasenees SenocecenSacscOoens 0 00 mee a 0 50 Estimate Revisions industry Comparables Pr Chg P EPSGr Prices Price Priee Bet Div Het YTD 12Moj SVr Est Book Sales CF P Yield Margin ROE 45 13556 51 314 374310141 00 17 0 22 1174 0 1335 21 0 29 10 0 46 7 11 o H 1 2 22 9 200 ompanies in industry group Latest Splits 02 23499 2 000 11 18 98 2 000 03 47 98 2 000 Ex Div Date The Snapshot is a companv report featuring companv description actual and estimated EPS companv vs industrv ratings fundamental data broker recommendations and price charts Doc To Help Standard Template Snapshot e 41 42 e Snapshot Snapshot Report Components Companv Summarv Table and Business Description 1 The most commoniv referred pieces of data on a stock are located near the top of the report for easy references Items here include company name ticker symbol and the Exchange on which the stock is traded price P E ratio trailing twelve months Market Capitalization Industrv companv tvpe current dividend rate and Dividend Vield 12 month
17. Price Action e 11 12 e Price Action Understanding Price Chart Tvpe Description General Options Chart Frequency Chart Type Overlay List Anis Options Class Absolute Zacks X Industry Zacks Sector Relative to Aggregate Relative to Company Relative to Index C Median Weighted Cancel Help When displaying a chart select to display either absolute or relative price data for the selected tickers Apply To access the Chart Type options open the Chart menu choose Chart Settings then click Current Settings The Chart Options menu will appear Click the Chart Type tab Select a chart type then click OK When choosing the Relative to Aggregate option select the aggregate from the Class list of available aggregates When choosing the Relative to Another Company option enter the ticker symbol in the Company Ticker box When choosing the Relative to Index option select an Index from the Index list Absolute Price Charts Absolute Price charts plot company or aggregate prices for the specified time period Relative to Aggregate Price Charts Relative to Aggregate Price charts display the relative performance of a selected company or aggregate as measured against a specific Industry Sector or the S amp P 500 For example when charting a company price versus the S amp P 500 index the stock price is divided by the S amp P 500 The performance of the stock is compar
18. Start Guide To display a Company vs Industry Analysis report select a ticker from the ticker drop menu located to the left of Get Report button or click the Company vs Industry Analysis button on the ICA Components toolbar A Company vs Industry Analysis report will be displayed Zoom Options To enlarge each ratio s display area choose the Zoom In option from the Company vs Industry Analysis Zoom menu to turn on the magnifier Move the magnifier over each ratio display to enlarge the area Turn the magnifier off by selecting the Zoom Out option Peer Analysis Quick Start Guide To display a Peer Analysis report select a ticker from the ticker drop menu located to the left of Get Report button or click the Peer Analysis button on the ICA Components toolbar A Peer Analysis report will be displayed The ratios in the chart are based on the latest information about the selected companies To view a historical performance of the specific company select the Show History button from the chart display Guided Tour e 9 Internet Based Reports Quick Start Guide To displav a report open the Tickers menu click Companies then select a ticker Select a report tvpe from the Get Report drop menu located to the right of the Get Report button then click the Get Report button ICA will launch vour default browser in a new window to displav the report To switch between vour browser and ICA click the ICA button on the Windows task
19. The Select Overlay s dialog box appears highlight an overlay to view its description in the description box Highlight an overlay then click Next The Overlay List menu reappears you may then specify the appearance of the overlay lines style weight color specify a marker or choose to display overlay data on the left axis Doc To Help Standard Template Estimates Deriving more value from brokerage equitv research Performance of analvsts not brokers Track record not short term performance Quantitative tool for measuring the performance of sell side analvsts Doc To Help Standard Template Overview The Estimates reports provide vou with the most complete and accurate overview of sell side analvst earnings estimates and stock recommendations available The reports displav the latest information on individual analvsts recommendations annual and quarterly EPS estimates and revisions consensus and Zacks Ratings for over 6 500 companies showing you the flow of estimate revisions and recommendations from over 300 brokerage firms The estimates and recommendations in Estimates reflect the opinions of individual analysts who may have been employed by more than one broker during the period of evaluation Thus the ranking indicates the performance of the analyst and not his her current employer The broker name noted for each analyst is that of the firm he she was employed by as of the date of the last estimate re
20. along Right Axis Cancel In addition to changing the time axis for the price charts use the magnify functionality of the ICA Set Base Date menu to reduce or increase the time frame for the chart display e To magnify right axis select the Maximize along Right Axis check box e To magnify left axis select the Maximize along Left Axis check box e To restore the setting click the Reset button Setting Base Date for Price Action Charts and Compare Stocks Charts To change the Base Date for any Price Action chart double left click your mouse button anywhere on the Time axis Price Action e 17 18 e Price Action To change the Base Date for the Compare Stocks charts double left click your mouse button anywhere on the Time axis or on the stock comparison chart Advanced Charting Price Action works with Chart Definitions These settings combine price charts with various overlays You can modify Zacks Chart Definitions or create your own Some Chart Definitions created for company tickers will not operate for Aggregate or Index tickers and vise versa In that case Error 1003 Data for ticker could not be read message will display Editing Chart Definitions To edit an existing Chart Definition click the Price Action button on the ICA Reports Access toolbar Open the Chart menu select Chart Settings then click Current Settings The Chart Options dialog box will appear To modify the specific aspects
21. appear Axis Options You have several scale options for the price charts To access the chart axis menu open the Chart menu select Chart Settings then click Current Settings Choose either Current Settings or New Settings option The Chart Options dialog box will appear Click the Axis Options tab Modifying left and or right axis scales are displayed as follows e Absolute Value axis values are shown in absolute terms e Percent Difference axis values are shown in terms of the percent change in price Doc To Help Standard Template Doc To Help Standard Template e Dollar Difference axis values are shown in terms of the dollar change in price e Logarithmic Base 10 axis values are shown on the logarithmic scale Using Compare Stocks Option to View Price Charts for Two or More Companies Set Base Date EN Base Date 0671 5 1994 Reset i xis J D F Maximize along Right Axis e To compare the percent change in companv prices over a specified period first select the Chart Frequency daily weekly or monthly Choose Set Base Date from the Chart menu to display the Set Base Date dialog box The Base Date is the date from which price changes are calculated and depends on the Chart Frequency Enter the new date in the Base Date box or use the scroll bar then click OK Using Set Base Date Menu to Magnify Price Charts Display Base Date oe 5 1994 Reset Iv F Maximize
22. industry or S amp P 500 use the Absolute Aggregate Fundamental overlays To add the Absolute Aggregate Fundamental overlay for the active company ticker select a company ticker from the Tickers pull down menu located to the left of the Get Report button Open the Chart menu select Chart Settings then New Settings The Chart Options dialog box will appear Click the Overlays List tab then click Add The Select Overlay Type dialog box will appear De select the Current Ticker box Select Aggregate Fundamental and Absolute options by clicking the radio buttons then click Next The Select Aggregate dialog box will appear Open the Class menu highlight the aggregate to add By default ICA will pick the company relevant Industry or Sector the Associated check box will be checked De select it if you do not want it then click Next The Select Overlay s dialog box will appear click an overlay to view its description in the description box Price Action e 23 24 e Price Action Highlight an overlav from the Available Aggregate Overlavs list depending on the overlav selected vou can displav the Median Market Cap Weighted or Total values then click Next Vou will return to the Overlav List menu where vou can specifv the appearance then click OK Adding Index Price Overlav To add an index price overlav select a companv ticker from the Tickers pull down menu located to the left of the Get Report button Open the
23. latest estimates for the company s current fiscal year The column s heading displays the month year the current fiscal year will end in the MM YYYY format for example 12 2000 An up down arrow next to the estimate indicates a recent estimate revision The direction of the arrow indicates a change from the previous analyst s estimate Estimates made by the Most Accurate Analysts are shown in red Click the MM YYYY heading to sort the column Date of Annual EPS Estimate The Date column shows the date when the current fiscal year estimate was made A blue rating date indicates the most recently released analyst EPS estimates Click the Date heading to sort the column Doc To Help Standard Template Period of Evaluation Doc To Help Standard Template Next Fiscal Vear Estimates Analvsts EPS estimates for the next fiscal vear are listed in the Annual Estimates section below the column headed by the month year MM YYYY the company s next fiscal year will end An up down arrow next to the estimate indicates a recent estimate revision The direction of the arrow indicates a change from the previous analyst s estimate Estimates made by the Most Accurate Analysts are shown in red Click the MM YYYY heading to sort the column Date of Annual EPS Estimate The Date column shows the date when the next fiscal year estimate was made A blue rating date indicates the most recently released analyst EPS estimates Click the Date headi
24. listed as Not Ident means authorization is needed to view the name When the Broker column has the CO FORECAST entry it identifies the company s own estimates for the earnings You can click the Broker heading to sort the column Ratings Code and Date Rating Codes The analyst ratings are presented as follows SB Strong Buy B Buy H Hold S Sell SS Strong Sell NR No Rating or you may not be authorized to view certain analvst s recommendations An up down arrow next to the rating code indicates a recent rating change by an analyst The direction of the arrow indicates a change from the previous analyst s recommendation A red rating code indicates the most accurate analysts You can click the Code heading to sort the column Rating Dates Rating dates show the date of the recommendation or a revision date Simple rating confirmations do not affect the original or revised rating dates A blue rating date indicates the most recently released analyst recommendation You can click the Date heading to sort the column Annual Estimates The Annual Estimates section lists the analvst s EPS projections for the current and next fiscal years Estimates e 27 28 e Estimates Current Fiscal Vear Estimates The leftmost column of the Annual Estimates section shows the latest estimates for the company s current fiscal year The column s heading shows the month and the year the current fiscal year will end in the
25. of chart select the corresponding tab Deleting Overlays Description General Options Chart Frequency Chart Type Overlay List Axis Options Remove Remove All Color gt Err Selected Overlays T 2000 Consensus T 1999 Consensus T 1998 Consensus T 1997 Consensus T 1996 Consensus Style H Weight D Custom Name Marker None D fi 996 Consensus Reset Name Axis Left s OK Cancel Help To delete an overlay from the Chart Definition open the Chart menu click Chart Settings The list of Current Settings will be displayed and a currently selected chart definition will have a check mark next to its name Click Current Setting to activate the Chart Options dialog box Select the Overlay List tab The list of Selected Overlays will be displayed Open the selected overlay list highlight an overlay you wish to delete and click Remove To delete multiple overlays press the Remove All button Choose OK Renaming Overlays You can change the overlay name as it appears on the chart To rename the overlay open the Chart menu select Chart Settings The list of Current Doc To Help Standard Template Doc To Help Standard Template Settings will be displaved and a currentiv selected chart definition will have a check mark next to its name Click Current Setting to activate the Chart Options dialog box Select the Overlav List tab The list of Selected Ov
26. term price movements Stocks are rated as a Strong Buv Buv Hold Sell or a Strong Sell These ratings have shown to be an accurate predictor of stock price performance relative to the market for the coming 90 180 days as oppose to the analvst s long term predictions that usuallv represent a 6 12 month outlook The Zacks Rank is also a relative measure comparing stock against the entire universe of stocks and the distribution of ranks reflects this approximately 20 of stocks are ranked Buy or Strong Buy 60 of stocks are ranked Hold and 20 ranked Sell or Strong Sell Analyst Broker Analyst Under the Analyst heading is a list of the names of the individual analysts If the analyst name is listed as Not Ident it means that you do not have an authorization to view the name Click the Analyst heading to sort the column Broker Under the Broker heading is a list of the names of the brokerage houses and independent research institutions that currently employ the analyst The broker name listed as Not Ident means authorization is needed to view the name When the Broker column has the CO FORECAST entry it identifies the company s own estimates for the earnings Click the Broker heading to sort the column Annual Estimates The Annual Estimates section lists the analysts EPS projections for the current and next fiscal years Current Fiscal Year Estimates The leftmost column of the Annual Estimates section shows the
27. this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth indexes Russell 3000 Value Index plot The Russell 3000 Value Index measures the performance of those Russell 3000 Index companies with lower price to book ratios and lower forecasted growth values The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes Russell MidCap Index Total Return plot The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index which represent approximately 35 of the total market capitalization of the Russell 1000 Index Russell Midcap Growth Index plot The Russell Midcap Growth Index measures the performance of those Russell Midcap companies with higher price to book ratios and higher forecasted growth values The stocks are also members of the Russell 1000 Growth index Russell Midcap Value Index plot The Russell Midcap Value Index measures the performance of those Russell Midcap companies with lower price to book ratios and lower forecasted growth values The stocks are also members of the Russell 1000 Value index Appendix e 59 60 e Appendix Russell Top 200 Index Total Return plot The Russell Top 2007M Index measures the performance of the 200 largest companies in the Russell 1000 Index which represents approximately 65 of the total market capitalization of the Russell 1000 Index
28. 044 t 11 30 1999 0 39 11 30 1999 0 02 0 02 0 01 0 08 Maxick J Madison Sec 0 43 t 10 20 1999 0 41 4 01 20 2000 0 02 0 04 0 02 0 08 Stanek M Lehman Brot 0 42 12 23 1999 0 41 f 01 19 2000 0 04 0 04 0 02 0 08 Not Ident Not Ident 0 00 0 00 0 00 0 00 Scocozza R Bear Steam 0 42 01 18 2000 0 41 01 13 2000 0 03 0 05 0 02 0 12 Young D Paine Webbe 0 43 12 23 1999 0 41 f 01 19 2000 0 04 0 05 0 03 0 08 Senk M Robertson S 0 42 12 23 1999 0 41 f 01 19 2000 0 04 0 05 0 03 0 08 Sherlund R Goldman Sac 0 42 12 23 1999 0 40 12 23 1999 0 04 0 05 0 02 0 06 Herman N Salomon Smi 0 42 12 24 1999 0 41 f 01 19 2000 0 04 0 05 0 02 0 08 Dunkerley P Sec Corp 0 49 10 19 1999 0 45 10 19 1999 0 03 0 06 0 02 0 12 Lederman L William Bla 042 t 10 20 1999 0 40 f 10 20 1999 0 04 0 04 0 03 0 08 Russell A Edward Jone 0 00 0 00 0 00 0 00 Dravis P Banc Of Ame 0 42 t 10 20 1999 0 40 f 10 20 1999 0 03 0 04 0 00 0 00 Roskill A Warburg Dil 0 42 t 10 20 1999 0 41 f 01 20 2000 0 04 0 05 0 00 0 00 Consensus Error 0 03 0 05 0 03 0 08 sl The Quarterly EPS Accuracy Report displays by how much each analyst missed the actual each quarter for the past four quarters The report also shows the Consensus error for that quarter For Estimate Performance calculations Zacks is using the EPS forecasts of quarterly earnings for the last four fiscal quarters Estimates e 37 Eligibilitv 38 e Estimates To be eligible an analvst must h
29. 10 29 1938 C Monthly Custom zl From 07 31 1334 Cancel App Help The Custom Display Range option allows users to zoom in to the specific date range for the price chart To specify a custom Display Range open the Chart menu select Chart Settings then click Current Settings The Chart Options menu will be displayed Click the Chart Frequency tab From the Display Range menu select the Custom option The dates menu will be enabled Enter a date in the From box or use the scroll bar Then click OK Display Data To examine particular data points in a data series of Price Action charts select Display Data from the Chart menu A Data Legend box will be displayed Data Legend Box The Data Legend box displays ticker date price and volume data with overlay information The legend box displays data corresponding to your cursor position when scrolled over the Price Action chart To view the Data Legend box open the Chart menu then select Display Data to remove select Hide Data Doc To Help Standard Template Doc To Help Standard Template Two Panels View Bin Ire e De Gegen Sot Te Dep ml al ai Reie Al 8 Pere l Tar bsog ZuM 7 i EZ E vk To view two charts simultaneously open the View menu then select Two Panels Two charts for the active ticker will be displayed Click inside either chart and select a new ticker from the Tickers pull down menu
30. 500 Business Services Computer and Technology Conglomerates Construction Consumer Discretionary Consumer Staples Finance Indices Industrial Products x C Median f Weighted To create an Aggregate Ticker List to be used in the Price Action reports open the Ticker menu select Aggregates or click the Aggregates button on the ICA toolbar The Aggregate List dialog box will appear From the Available Aggregates section highlight an Aggregate Class then select a specific Aggregate Click Add to List The aggregate will appear in the Aggregate List To remove an aggregate highlight it in the Aggregates List and then click Remove To delete all aggregates click Remove All Selected aggregate tickers will appear in the Tickers menu Creating Indexes Ticker List Index List x Index List S amp P 1500 Index S amp P 400 Mid Cap S amp P 500 Total Return S amp P 600 Small Cap iS P BARHA Growth Index SAP BARRA Value Index Wilshire 4500 Equity Index Wilshire 5000 Yalue Weighted Total Perf l Wilshire Large Cap Growth Wilshire Large Cap Value Wilshire REIT Index Wilshire Small Cap Value ed Cancel Doc To Help Standard Template Guided Tour e 7 8 e Guided Tour To create an Indexes Ticker List to be used in the Price Action open the Ticker menu then select Indexes or click the Indexes button on the ICA toolbar The Index List dialog box will be displayed Select multiple Indexes by hold
31. 8 Editing Chart Definitions nanna 18 Understanding Overlay Options nn 21 Creating New Chart Definitions na 22 Creating New Chart Definitions for Aooregates 24 Estimates 25 OVEIWIOW aca ana jan eA eRe Vs E Eege EAESEEE E 25 Estimate Reports Categories nanna 25 Current Estimates and Ratings Report nn 26 Current Estimates and Ratings Report Componerts nn 26 Rating Performance Heport anna 30 Rating Performance Report Components 2 nnnnnnnnnnn nn 31 Analyst Rating History Plot 33 Annual EPS Accuracy Heport nn nn nn mnn ann rnnnnn nn manna 35 Annual EPS Accuracy Report Components mnn 35 Quarterly EPS Accuracy Report nn nanna 87 Snapshot 41 Doc To Help Standard Template e1 OVEIVICW LL EA A MAKE MAKE KEMM KA MAKIAMAMIMMIMIAE IIA MI NIE MAMIMMAMIEMA NIE MA zzMAzzzzzzzazzzzzna 41 Snapshot Report Component nn nn nnnnnnnnnnn nanna nnnr mnn nanna nnnnn nannti 42 Companv vs Industrv Analvsis 45 OVENI EW i ian ERREN 45 Company vs Industry Analysis Report Components e nnnnnnannnnnzannrnnzznnmanzni 45 Company vs Industry Analysis Ratio Ges annn n nnna 46 Itten te 46 Peer Analvsis 48 OVENVIEW linka E tali i d a ar ri E 48 ZACKS Peer E elle TEE 48 Custom Peer Groups sesen EEEIEE 48 Peer Analysis Components A 49 Peer Analysis Ratio Categories nanna 49 Peer Analysis Information Table 50 Peer Analysis Ratio Sets san 50
32. Chart menu select Chart Settings then New Settings The Chart Options dialog box will appear Select the Overlavs List tab then click Add The Select Overlav Tvpe dialog box will appear leave the Current Ticker check box marked Select Fundamental and then Absolute options bv clicking the radio buttons then click Next The Select Overlav s dialog box appears click an overlav to view its description in the description box Scroll down to view the first Index overlav description Highlight an Index overlav then click Next The Overlav List menu reappears Specifv the appearance of the overlav lines stvle weight color marker and axes then click OK Creating New Chart Definitions for Aggregates Vou can chart prices and fundamental ratios for various Aggregated Classes S amp P 500 Zacks X Expanded Industry Zacks X Expanded Sector Zacks M Medium Industry Adding Absolute Fundamental Aggregate Overlays To add the Fundamental Aggregate overlay for the active aggregate ticker select an aggregate ticker from the Tickers pull down menu located to the left of the Get Report button Open the Chart menu select Chart Settings then New Setting The Chart Options dialog box will appear Click the Overlays List tab then click Add The Select Overlay Type dialog box will appear leave the Current Ticker check box marked Select Fundamental and then Absolute options by clicking the radio buttons then click Next
33. ERY POLLUTION CONTROL BUILDING PRODUCTS CONSTRUCTION BUILDING SERVICES Doc To Help Standard Template 9 10 11 12 13 14 15 16 17 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 70 Conglomerates Computer and Technologv Aerospace Oils Energy Finance Utilities Transportation Business Services Unclassified COMPUTER OFFICE EQUIPMENT COMPUTER SOFTWARE SERVICES ELECTRONIC SEMICONDUCTORS ELECTRONICS MISC TECHNOLOGY TELECOMMUNICATIONS EQUIPMENT TELECOMMUNICATIONS SERVICES AEROSPACE DEFENSE COAL ENERGY ALTERNATE SOURCES OIL MACHINERY SERVICES DRILLING OIL EXPLORATION amp PRODUCTION OIL MISC OIL INTEGRATED OIL amp GAS PRODUCTION PIPELINE BANKS MAJOR BANKS amp THRIFTS FINANCE INSURANCE INVEST BKRS MGRS INVESTMENT FUND REAL ESTATE UTILITY ELEC PWR UTILITY GAS DISTR UTILITY TELEPHONE UTILITY WATER SUPPLY TRANSPORTATION AIR TRANSPORTATION BUSINESS SERVICE UNCLASSIFIED Appendix e 63 30 CONGLOMERATES Zacks X Expanded Industrv Groups ANOoaRWD Om Oo Oo Oo OS BR KR SS SS SP So oa GO GO GO GO Ca G GO Go bhMbMMbMbhMbMbhMbMhMbM ch 2 ch ch ch ch ch ch h Ah OO SL Go zz OO oO OD Jo Om SO bM AO oO OD JO OS ON OO OD Jo Oo PS ON OO oO OD JO Om P Go O ADVERTISING AEROSP DEFENSE AEROSP DEF EQ AGRI OPERATIONS APPLIANCE HSHLD AUDIO VIDEO PRD AUTO DOMESTIC AUTO FOREIGN RET WHL AUTO PT AUTO TRUCK ORIG A
34. H INS BROKERS INS LIFE INS MULTI LINE INS PROP amp CASLTY LASERS SYS COMP LEISURE amp REC PRD LEISURE amp REC SVS LINEN SPLY amp REL MACH TLS amp RL PRD MACH CONST MNG MACH ELEC UTILS MACH ELECTRICAL MACH FARM MACH GENL INDL MACH MATL HDLG MACH PRINT TRAD MACH THRML PROC MED INSTRUMENTS MED PRODUCTS MED BIOMED GENE MED DRUGS MED GENERIC DRG MED HMO 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 MED HOSPITALS MED NURSING HMS MED OUTP HM CRE MED WHSL DRG SN MED DENTAL SUPP MINING GOLD MINING IRON MINING MISC MINING NON FERR MINING SILVER METAL PROC amp FABR METAL PRD DISTR METAL PRD FSTRS MOVIE TV PROD DISTR CON PRD MISC DISCR OFFICE AUTO amp EQP OFFICE SPPL amp FRM OIL US RYLTY TR OIL FLD MCH amp EQP OIL REFING amp MKTG OIL C EXP amp PROD OIL C INTEGRTD OIL FIELD SVCS OIL INTL INTGD OIL INTL SPCLTY OIL amp GAS DRILL OIL PROD PIPELN OIL US EXP amp PROD OIL US INTEGRTD COMP OPTICL REC PAINTS amp REL PRDS PAPER amp REL PRDS PAPER BUS FORMS PHOTO EQP amp SUPP POLLUTION CNTRL PREC MTLS JWLRY PRINTING COMMRL PROTECTION SFTY PUBLSHG BOOKS PUBLSHG NEWSPRS PUBLSHG PRDCALS REIT EQTY TRUST REIT MTGE TRUST REAL ESTATE DEV REAL ESTATE OPS RETAIL APP SHOE RETAIL CATLG SH RETAIL CON
35. Integrated Company Analysis Version 2 0 Zacks Investment Research Inc 2000 Manual Last Updated 8 11 00 Contents Overview 3 Introduction EE 3 Guided Tour 4 Getting Started INICA i iii if f hannah ane 4 Partsof IGA SCreen iii aa a AEN 4 single Ticker LOOKk Up eerste a aa aa a da ah adie 5 Working with Ticker Lists in CA 5 ICA Ticker Tvpes Lena mnnn nanna nnn nn nnnnnAAnnnnnnnnnnnnni 5 Working with Companies Ticker Lists 5 ICA Folders AAA 8 Printing ICA Reports nn nn n nanna nm mnn n mnn na mnn nn 8 Exporting ICA Heports nanna nanna mn mann nn mnn nn 8 Price Action Quick Start Guide 9 Estimates Quick Start Guide 2 L nanna nr nnnnnnnnn ann ratata 9 Snapshot Quick Start Guide nanna mnn nn 9 Company vs Industry Analysis Quick Start Guide ss nnnnnennnnnzzonnnnzzznnrzzna 9 Peer Analysis Quick Start Guide nn nn 9 Internet Based Reports Quick Start Guide e nennnnnnnnnnannnnnnnnnnnnnnnnnnnnnnnana 10 Clearing Temporary Internet File 10 Price Action 11 OVENI W i t ee in Se a a aq 11 Basic Charting a carat ance en E E 11 Using Chart Dettni ons nanna 11 Understanding Price Chart Tvpe nn nanna 12 Price Chart Frequency L nn nn n ana nnnnann mnn mnn nnnnnnn tna 13 Display bata i ii rina a ee iat ieee 14 Price Charts for Multiple Companies 15 Advanced Charting 0 ceceeeccceeeeeeeeeeeeeeccaaeeeeeeeeeeecaaaeeeeeeeeeeeecaaaaeeaeeeeeeeeeteesnaaeeeeess 1
36. Pershing SB f 09 23 1999 1 65 10 20 1999 2 00 10 20 1999 M Maxick J Madison Sec SB 11 12 1996 1 69 1 01 20 2000 1 96 01 20 2000 0 43 f 10 20 1999 0 41 E 01 20 2000 M Herman N Salomon Smi SB 12 04 1997 1 66 12 24 1999 2 00 01 19 2000 0 42 12 24 1999 0 41 f 01 19 2000 M Stanek M Lehman Brot SB f 01 3997 1 64 01 19 2000 0 42 12 23 1999 0 41 f 01 19 2000 M OBrien T Branch Cabe B 06 11 1999 1 64 t 01 05 2000 1 83 10 25 1999 W Russell A Edward Jone B 12 30 1996 1 69 tf 01 19 2000 1 90 01 19 2000 WI Galvin C Chase H amp Q B 04 19 1996 1 72 f 01 19 2000 1 98 f 01 19 2000 0 42 f 10 21 1999 0 41 f 01 19 2000 W Crook D Prudential B 4 07 220 999j 1 66 f 01 19 2000 1 85 01 05 2000 0 42 t 10 20 1999 0 40 f 01 19 2000 M Roskill A Warburg Dil B 04 15 1999 1 67 t 01 20 2000 1 90 01 20 2000 0 42 f 10 20 1999 0 41 t 01 20 2000 sj Most Accurate Consensus SB 1 66 t 1 97 t 0 43 t 0 40 4 Most Recent Consensus B 1 68 t 1 90 4 0 42 0 41 t Zacks Consensus B 1 67 t 1 91 0 43 t 0 41 t Custom Consensus B 1 68 1 91 0 43 0 41 Current Estimates and Ratings reports contains ticker symbol company name industry EPS report dates analysts brokers current recommendation and its date current and next fiscal year estimates current and next fiscal quarter estimates consensus data for ratings and estimates and Zacks rating Current Estimates and Ratings Report Components Company Information e Ticker
37. Quarterly Estimates section shows the latest estimates for the current fiscal quarter The column s heading shows the month and the year the current fiscal quarter will end in the MM YYYY format for example 03 2000 An up or down arrow next to the estimate indicates a recent estimate revision The direction of the arrow indicates a change from the previous analyst s estimate Estimates made by the Most Accurate Analysts are shown in red Click the MM YYYY heading to sort the column Date of Quarterly EPS Estimate The Date column shows the date of current fiscal quarter estimate A blue rating date indicates the most recently released analyst EPS estimate Click the Date heading to sort the column Doc To Help Standard Template Most Accurate Annual EPS Estimates Consensus Criteria Most Accurate Quarterly EPS Estimates Consensus Criteria Most Accurate Recommendation Ranking Criteria Doc To Help Standard Template Next Fiscal Quarter Estimates Analysts EPS estimates for the next fiscal quarter are listed in the Quarterly Estimates section in the column headed by the month and year MM YYYY the company s next fiscal quarter will end An up or down arrow next to the estimate indicates a recent estimate revision The direction of the arrow indicates a change from the previous analyst s estimate Estimates made by the Most Accurate Analysts are shown in red Click the MM YYYY heading to sort the column Date of Quart
38. S ELC RETAIL CNV STRS RETAIL DISCOUNT RETAIL DRUG STR RETAIL RESTRNTS RETAIL HOME FRN RETAIL JEWELRY 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 400 500 RETAIL MAIL ORD RETAIL MJR DEPT RETAIL MISC DIV RETAIL RGN DEPT RETAIL SUPERMKT RETAIL VENDING RETAIL WHSL CMP RUBBER amp PLASTICS RUBBER TIRES SCHOOLS SHOES amp REL APPRL SOAP amp CLNG PREPS STEEL PIPE amp TUBE STEEL PRODUCERS STEEL SPECIALTY TELECOMM SVCS TELECOMM EQUIP TEXTILE APPAREL TEXTILE HME FRN TEXTILE PRDUCTS TOBACCO TOOLS HAND HELD TOYS GAME HOBBY TRANS AIR FRGHT TRANS AIRLINE TRANS EQP amp LSNG TRANS RAIL TRANS SHIP TRANS SERVICES TRANS TRUCK UTIL ELEC PWR UTIL GAS DISTR UTIL TELEPHONE UTIL WATER SPLY WIRE amp CABLE PRDS COMP NETWORKS COMP MINI LEISURE amp REC GMG TELECOMMCTNS WIRELESS COMP STORAGE DEV COMP INTEGT SYS BANKS MAJOR REGIONAL BUS SVCS BUS INFO SVCS CON PRD MISC STAPLES MEDIA CONGLOMERATES ELEC MFG MACHINERY RET WHLSL AUTO TRUCK ELECTRONIC COMMERCE INTERNET CONTENT INTERNET SERVICES INTERNET SOFTWARE INDICES UNCLASSIFIED Doc To Help Standard Template Doc To Help Standard Template Estimates Report Methodologv How WIN is calculated The analyst s WIN is calculated by dividing the number of Wins by the
39. UTO TRUCK REPL BANKS FOREIGN BANKS MIDWEST BANKS MONEY CTR BANKS NORTHEAST BANKS SOUTHEAST BANKS SOUTHWEST BANKS WEST BEVERAGES ALCOH BEVERAGES SOFT BLDG amp CONST MISC BLDG PRD AIR HT BLDG PRD DRS amp TR BLDG PRD LTG FX BLDG PRD RT WHL BLDG PRD WOOD BLDG CMT CNT AG BLDG HEAVY CNST BLDG MAINT amp SV BLDG MBL MFG amp RV BLDG RSDNT COMR BRDCST RADIO TV CABLE TV CHEM DIVERSIFD CHEM FIBERS CHEM PLASTICS CHEM SPECIALTY COAL COMP GRAPHICS COMP MAINFRAME COMP MICRO COMP PERIPH EQP COMP SERVICES COMP SOFTWARE CONTNRS MTL GLS CONTNRS PPR PLS COSMETICS amp TLTRS DIVERSIFIED OPS ELEC COMP SEMIC ELEC MISC COMPN ELEC MSRNG INST ELEC PRODS MISC ELEC CONNECTORS ELEC PARTS DIST 64 e Appendix 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 ELEC MILITARY ENERGY ALT SRCS ENGINRG R amp D SVS ENGINES INT CMB FERTILIZERS FIBER OPTICS FIN CONS LOANS FIN INVEST BKRS FIN INVEST MGMT FIN LEASING COS FIN MTG amp REL SVS FIN INVEST FUND FIN SVGS amp LOAN FIN SBIC amp COMMRL FIN MISC SVCS FOOD ITEMS WHLE FOOD CANNED FOOD CONFECTNRY FOOD DAIRY PRDS FOOD FLOUR amp GRN FOOD MEAT PRODS FOOD MISC DIVERS FOOD SUGAR amp REFG FUNERAL SVS amp REL FURNITURE GLASS PRODUCTS HOTELS amp MOTELS INDL AUTO RBTCS INSTRU CONTROL INSTRU SCIENTFC INS ACC 8 HLT
40. William Bla 1 63 12 31 1999 4 7 6 3 Russell A Edward Jone 1 69 f 01 19 2000 1 90 01 19 2000 3 7 5 D Dravis P Banc Of Ame 1 63 f 10 20 1999 3 0 0 0 Roskill A Warburg Dil 1 67 t 01 20 2000 1 90 01 20 2000 3 0 D 0 The Annual EPS Accuracy Report displays how many months in a given year an analvst s estimate was more accurate than that month s consensus for that fiscal year For Estimate Performance calculations Zacks is using the monthly forecasts of fiscal year earnings for the last four years To be eligible an analyst must have a rated at least three separate stocks within a given industry for the past five years and b have at least one EPS forecast on file for the current fiscal year This second requirement is meant to ensure that although an analyst may not have issued buy or sell ratings for any of his or her stocks during the most recent year the analyst is still following the industry Annual EPS Accuracy Report Components Company Information e Ticker The company s ticker symbol e Company The company name e Industry One of more than seventy industry groups These groupings represent an aggregation of the over 200 industry categories under which Zacks records data Last Update The date of the database update Estimates e 35 36 e Estimates Zacks Rating The Zacks Rating is based on our proprietarv model that uses earnings estimate revisions and earnings surprises to predict short
41. alyst s buy recommendations Doc To Help Standard Template Doc To Help Standard Template Best Buv Return The buv recommendations with the best returns during the past five vears are shown in the Best Buv Return section MO The number of months with the best returns RET The return of the recommendation with the highest return IND The return of an equal weighted industrv index for the same period as the best buv recommendation Analvst Rating Historv Plot Integrated Company Analysis Analyst History MSFT File Ticker View Chart Tools Help gell sia al Biel aj H Price Action Estimates Snapshot Co vsind Peer Analysis E Get Report Abstracts zl Price 495 490 85 80 475 470 T 465 60 55 750 445 Scocozza R Christoph D Specker M Brosseau A ces ou D 4 i 4 4 14 3 95 6 95 9 95 12 95 3 96 6 96 9 96 12 96 3 97 6197 997 12 97 3 98 6 98 9 98 12 98 3 99 6 99 999 lt lt 11 84 12 9 Jl For Help press FI Analvst Rating Historv charts displav how analvst recommendations have changed over time To access the Analvst Rating historv open the Rating Performance report menu select up to five analvsts whose historical performance vou want to evaluate bv checking the box to the left of the analvst s name Click the Plot Historv button The Analvst Rating Historv chart appear on the last used Price Action chart Interpre
42. ave a rated at least three separate stocks within a given industrv for the past five vears and b have at least one EPS forecast on file for the current fiscal vear This second requirement is meant to ensure that although an analvst mav not have issued buv or sell ratings for any of his or her stocks during the most recent year the analyst is still following the industry Quarterly EPS Accuracy Report Components Company Information e Ticker The company s ticker symbol e Company The company name e Industry One of more than seventy industry groups These groupings represent an aggregation of the over 200 industry categories under which Zacks records data Last Update The date of the database update Zacks Rating The Zacks Rating is based on our proprietary model that uses earnings estimate revisions and earnings surprises to predict short term price movements Stocks are rated as a Strong Buy Buy Hold Sell or a Strong Sell These ratings have shown to be an accurate predictor of stock price performance relative to the market for the coming 90 180 days as oppose to the analyst s long term predictions that usually represent a 6 12 month outlook The Zacks Rank is also a relative measure comparing stock against the entire universe of stocks and the distribution of ranks reflects this approximately 20 of stocks are ranked Buy or Strong Buy 60 of stocks are ranked Hold and 20 ranked Sell or Strong Sell Analyst
43. bar Clearing Temporarv Internet Files ICA has a special temporarv Internet files folder on vour hard disk where ICA pages are stored as vou view them This speeds up the viewing of charts for the companies that are in vour active Ticker List To delete these temporary files select the Clear Cache command from the Tools menu 10 e Guided Tour Doc To Help Standard Template Price Action Overview Bi Jeem yem Bra Comm jimmira Feb Dk al auj a maji aj d KR H ES A The ICA Price Action feature helps analyze how strongly a stock s price reacts to EPS surprises estimate revisions and broker recommendations Price Action compares two or more company prices and fundamental performance data It also helps analyze company performance versus industry sector S amp P 500 and any major market index Price Action plots price charts against a wide range of fundamentals overlays Overlays display how sensitive a stock or an aggregate is to any given factor Basic Charting Using Chart Definitions Price Action performs with Chart Definitions settings that combine price charts with various overlays Use Zacks Chart Definitions or create your own To access Chart Definitions Click the Price Action button on the ICA Reports Access toolbar Open the Chart menu select Chart Settings The list of Current Settings will be displayed Select a Chart Definition name to display chart Doc To Help Standard Template
44. cks that can result in significant upward price movements However too high a level of Institutional ownership can increase a stock s downside risk because these large shareholders represent potential sellers if something goes wrong at the companv Significant ownership bv corporate insiders is considered favorable because management s interests are then more closelv aligned with other shareholders Fundamental and Technical data EPS P E and Growth Rates 6 This section summarizes the company s recent Actual and Estimated EPS P E and Year to Year EPS Growth Rates Current and 5 year Average Data 7 This section includes five key measures as they stand currently versus historically average of the last five years These measures are P E ratio trailing 12 months P E ratio relative to the S amp P 500 Net Margin Return on Equity ROE and the Long Term Debt To Capitalization Ratio a key indicator of financial risk Stocks trading below above their historical P E and relative P E ratios may be cheap expensive unless there have been fundamental changes in the company s growth prospects Similarly changes in a company s profitability or capital structure from previous norms are important to note Actual EPS and EPS Estimates vs Stock Price Chart 8 The chart at the center of the Snapshot report plots the stock price versus the 12 month earnings per share The chart includes fiscal year end data going back five years quarte
45. corded Zacks rates analysts over the long term four years for estimates and over five years for recommendations Consequently rankings are a measure of the analyst s track record and are less likely to be affected by random short term events Zacks introduces objective standards into the decision process by quantitatively evaluating and ranking sell side analysts on two important performance measures the accuracy of their earnings per share EPS forecasts and the utility of their stock ratings Both these measures reflect only demonstrated performance Zacks analyzes data for over 6 500 companies aggregated into over seventy industry groups This data covers multiple years and includes the EPS and stock ratings of over 2 500 analysts The data shown in Estimates is associated with an individual analyst and stays with that analyst regardless if he she is employed by more than one firm during the period under evaluation Estimate reports evaluate the performance of people not stocks With these reports you have the ability to evaluate the analysts past performances to better assess the credibility of their current EPS estimates and recommendations Estimate Reports Categories There are several Estimates and Recommendations Reports available e Current Estimates and Ratings Report e Rating Performance Report e Annual EPS Accuracy Report e Quarterly EPS Accuracy Report Rating Performance Report Annual EPS Accuracy Report an
46. d Quarterly EPS Accuracy Report may not be included in your subscription Estimates e 25 26 e Estimates Current Estimates and Ratings Report Integrated Company Analysis Estimates MSFT File Ticker View Tools Help MSFT gt lmj al Seil al 2 _PriceActon Estimates _ Snapshot f Go f Peer Analysis tee El E Get Report Abstracts Ticker MSFT Zacks Rating Buy Last Update 02 16 2000 Company Microsoft Corp EPS 0 47 12 1999 Report Date R 01 18 2000 Industry Computer Software amp Svcs 03 2000 Report Date E 04 18 2000 Curr Rating amp Ests Rating Performance Ann Est Accuracy Qtr Est Accuracy ANALYSTS RATING ANNUAL ESTIMATES QUARTERLY ESTIMATES MI Scocozza R Bear Stearn SB 10 31 1997 1 69 t 01 18 2000 1 95 01 13 2000 0 42 01 18 2000 0 41 01 13 2000 2 Christoph D Crowell Wee SB 11 01 1999 1 68 11 01 1999 1 70 01 25 2000 M Specker M Soundview T SB f 100998 1 67 t 01 19 2000 1 92 tf 01 9 2000 0 42 01 13 2000 0 41 01 19 2000 M Brosseau A Sg Cowen Se SB f 10 201999 1 64 4 01 24 2000 2 00 01 14 2000 0 42 0114 2000 0 40 02 08 2000 M Sherlund R Goldman Sac SB f 04 19 1996 1 63 12 23 1999 0 42 12 23 1999 0 40 12 23 1999 T Not Ident Not Ident 5B 12 1 1998 1 67 12 23 1999 1 87 12 16 1999 0 43 12 23 1999 0 42 t 10 20 1999 M Young D Paine Webbe SB 12 16 1998 1 70 f 01 19 2000 1 95 12 23 1999 0 43 12 23 1999 0 41 t 01 19 2000 M Geran M
47. e to one another on a scale from 1 to 99 to create a composite Indicator ranks less than or equal to 20 are bullish Indicator ranks greater than or equal to 80 are bearish and all other Indicator ranks should be considered neutral and ignored The Indicator amp Relative Price chart overlays Indicator composite rank with the stock price relative to S amp P 500 An upward sloping relative price line indicates that the stock is outperforming the market whereas the downward sloping line indicates that the stock is under performing the market 12 Month EPS This chart shows whether the stock price responds to changes in Actual and Consensus 12 Month EPS Performance Relative to M Industry This chart shows the stock price performance versus relevant Zacks M Industry median price index Performance Relative to X Industry This chart shows the stock price performance versus relevant Zacks X Industry median price index Performance Relative to Sector This chart shows the stock price performance versus relevant Zacks Sector median price index Performance Relative to DJIA This chart shows the stock price performance versus the Dow Jones Industrial Average Performance Relative to Russell 2000 This chart shows the stock price performance versus the Russell 2000 Index Performance Relative to S amp P 100 This chart shows the stock price performance versus the S amp P 100 Index Performance Relative to S amp P 400 This chart sho
48. e buy recommendation was in excess of the average industry performance The final results are expressed in terms of Strong Buy Buy Hold Sell Strong Sell Overlays Special fundamental data charts that are added to the standard price and volume charts Overlays will show how sensitive a stock is to any factor you choose Glossary of Terms e 69 70 e Glossarv of Terms Quarterly Analyst The difference between the actual EPS and the analyst s EPS estimate at the end of quarter Ratio Category ICA uses fundamental data divided into six ratio categories EPS Momentum Fundamental Ratios Broker Recommendations Growth Rates Valuation and Price Momentum Ratio Set A special file created using Ratios Set Editor in ICA This file contains custom set of fundamental ratios By default ICA uses Value txv ratio set Taskbar The taskbar is the bar on your desktop that has the Start button on it Buttons representing programs currently running on your computer appear on this bar Ticker List File that contains ticker symbols Ticker lists are in a tab delimited format with the extension txt By default ICA uses Myportf txt Ticker List Doc To Help Standard Template Index A Actual EPS 44 Adding Absolute Aggregate Price Overlavs 23 Adding Fundamental Overlavs 22 Adding Index Price Overlav 24 Adding or Deleting Chart Gridlines 21 Aggregate Overlays 25 Analyst Rating History Plot 34 Annual EPS Accuracy Repor
49. e number of analysts actively following the stock and their opinions about the stock s relative attractiveness Price Volume Data 3 This section of the report includes data indicating the stock s price range over the last 52 weeks as well as year to date price change for the stock and its performance relative to the S amp P 500 The average daily trading volume for the last 20 trading days is also provided Expected Return Market Risk 4 Implied Return The stock s implied return is calculated by adding a stock s current dividend yield to its estimated long term EPS growth rate The implied return is a handy performance measure which could approximate the total annual return including dividends and capital appreciation an investor might achieve over the next several years provided the projected growth on EPS actually materializes and the P E ratio does not change Doc To Help Standard Template Doc To Help Standard Template Beta A stock s Beta is a statistical measure of its sensitivitv to past market movements A stock with a beta of 1 5 has historicallv seen its price move up or down one and one half times the percentage change in the broader equitv market Shareholder Data 5 This section includes data on the number of shares outstanding and the percentage owned bv Inside Management and Institutional Investors Some Institutional sponsorship is desirable because these large investors tvpicallv trade large blocks of sto
50. e within this range should be ignored as well It is important to note that the Indicator is a relative ranking tool only It is not an absolute valuation tool The Indicator does not measure real or absolute value instead it predicts changes in relative market valuation This overlay uses an inverted scale Quarterly Operating Margin The quarterly operating marginal percentage of gross sales less the cost of goods sold and selling general and administrative SG amp A expenses Annual Operating Margin The annual operating marginal percentage of gross sales less the cost of goods sold and selling general and administrative SG amp A expenses Consensus Overlays Consensus Overlays use mean EPS Estimate for the specified year based on Current and Next Fiscal Year analysts estimates Index Overlays The following Index plot overlays were calculated by Zacks using a value of 100 at the beginning of the time series of returns for each Index Index plot overlays include month end data HFRI Indexes Hedge Fund Research Transparent Indices 1999 Hedge Fund Research LLC Using the detailed position data on investment managers Hedge Fund Research Inc selects pure style managers for each index focusing on the defining characteristics of each strategy HFRI Equity Hedge Index plot This Index tracks performances of those hedge funds whose managers investing style is purely Equity Hedge i e consists of a core hold
51. ed as Not Ident it means that you do not have an authorization to view the name You can click the Analyst heading to sort the column Broker Under the Broker heading is a list of the names of the brokerage houses and independent research institutions that currently employ the analyst If the broker name is listed as Not Ident it means that you do not have an authorization to view the name You can click the Broker heading to sort the column Ratings Code and Date Rating Codes The analyst ratings are presented as follows SB Strong Buy B Buy Estimates e 31 32 e Estimates H Hold S Sell SS Strong Sell NR No Rating or you may not be authorized to view certain analyst s recommendations An up down arrow next to the rating code indicates a recent rating change by an analyst The direction of the arrow indicates a change from the previous analyst s recommendation A red rating code indicates the most accurate analysts Click the Code heading to sort the column Rating Dates Rating dates show the date of the recommendation or a revision date Simple rating confirmations do not affect the original or revised rating date A blue rating date indicates the most recently released analyst recommendation Click the Date heading to sort the column All Runs Recommendation Performance A run is a time period during which the particular recommendation was maintained RECOM The number of buy and sell reco
52. ed to the general market A resulting upward sloping Relative Performance chart indicates a company is outperforming the market whereas the downward sloping indicates a company is under performing the market Users may choose to display either Median or Market Weighted values for the aggregates Doc To Help Standard Template Doc To Help Standard Template Relative to Another Companv Price Charts Relative to Another Companv Price charts displav the relative performance of a selected companv or aggregate as measured against another companv Relative to Index Price Charts Relative to Index Price chart displav the relative performance of a selected companv or aggregate as measured against anv market Index Changing Chart Tvpe To change the chart tvpe open the Ghart menu choose Chart Settings then click Current Settings The Chart Options menu will be displaved Click the Chart Tvpe tab Select a chart tvpe then click OK Price Chart Frequencv Price Chart Frequencev option displav charts using share volume data with monthly weekly or daily frequency distinctions Monthly Frequency displays month end prices and volume Volume is the total number of shares traded during a month expressed in thousands Monthly prices are available for the past 12 years Weekly Frequency displays week end prices and volume Volume is the total number of shares traded during a week expressed in thousands Weekly prices are available for
53. er estimate was made A blue rating date indicates the most recently released analyst EPS estimate Click the Date heading to sort the column Next Fiscal Quarter Estimates Analyst EPS estimates for the next fiscal quarter are listed in the Quarterly Estimates section in the column headed by the month and year MM YYYY the company s next fiscal year will end An up down arrow next to the estimate indicates a recent estimate revision The direction of the arrow indicates a change from the previous analyst s estimate Estimates made by the Most Accurate Analysts are shown in red Click the MM YYYY heading to sort the column Date of Quarterly EPS Estimate The Date column shows the date when the next fiscal quarter estimate was made A blue rating date indicates the most recently released analyst EPS estimate Click the Date heading to sort the column Estimate Errors There are four columns in the Estimate Error section Each column represents one of the past four fiscal quarters for the company and is identified in its heading by that quarter s end date These dates are shown in the MM YYYY format for example 12 1999 09 1999 06 1999 03 1999 The data shown in each column is the Quarterly Analyst Error for that quarter Quarterly Analyst Error The Quarterly Analyst Error is the difference between the quarter s actual EPS and the analyst s EPS estimate for that quarter as of the last day of the given quarter Margin of
54. ering the company The data associated with individual analyst stays with that analyst whether or not he or she is employed by more than one firm during the period under evaluation 30 e Estimates Doc To Help Standard Template Doc To Help Standard Template Rating Performance Report Components Companv Information e Ticker The companv s ticker svmbol e Company The companv name e Industry One of more than seventy industry groups These groupings represent an aggregation of the over 200 industry categories under which Zacks records data Last Update The date of the database update Zacks Rating The Zacks Rating is based on our proprietary model that uses earnings estimate revisions and earnings surprises to predict short term price movements Stocks are rated as a Strong Buy Buy Hold Sell or a Strong Sell These ratings have shown to be an accurate predictor of stock price performance relative to the market for the coming 90 180 days as oppose to the analyst s long term predictions that usually represent a 6 12 month outlook The Zacks Rank is also a relative measure comparing stock against the entire universe of stocks and the distribution of ranks reflects this approximately 20 of stocks are ranked Buy or Strong Buy 60 of stocks are ranked Hold and 20 ranked Sell or Strong Sell Analyst Broker Analyst Under the Analyst heading is a list of the names of the individual analysts If the analyst name is list
55. erlavs will be displaved In the Custom Name box enter the new name for the overlav To restore the overlavs default name click the Reset Name button Modifving Overlav Markers Appearance Description General Options Chart Frequency Chat Type Overlay List Axis Options Remove Remove All Color Err Selected Overlays E STEN T Broker Recommendations mi P E E Style DI Weight DI Custom Name Marker x zl Broker Recommendations Reset Name Each overlay on the chart can be distinguished by a unique pattern marker To change markers for the overlays open the Chart menu select Chart Setting then click Current Settings The Chart Options dialog box will be displayed Click the Overlay List tab to view selected overlays Open the Selected Overlays list highlight an overlay which marker you want to change Open the Marker pull down menu select the desired pattern Click OK Price Action e 19 20 e Price Action Modifving Price Chart Appearance Description General Options Chart Frequency Chart Type Overlay List Axis Options Grdi Chart Item A ees Background m Tj l M Horizontal Labels and Borders Seer WERT MV Vertical Style DI Volume occupies E Rode i f hi d p EUSO e G of window 0 102030 Marker None Axis Right DI Cancel Help You can change the appearance of the vari
56. erly EPS Estimate The Date column shows the date of next fiscal quarter estimate A blue rating date indicates the most recently released analyst EPS estimate Click the Date heading to sort the column Consensus Consensus data for recommendations and estimates is displayed in the lower portion of the Estimates report There are separate consensus items for the ratings and for the annual and quarterly estimates Most Accurate Consensus The most accurate EPS consensus displayed in red is computed by ranking the analyst s historical performance Annual EPS Estimates Most Accurate Consensus Criteria The most accurate EPS consensus is the average of the top quartile of the analysts making forecasts for whom we have history The criteria for annual analyst EPS accuracy is the average number of month end forecasts during the past four years when the analyst s annual EPS absolute forecast error was less than the absolute consensus error for the year Quarterly EPS Estimates Most Accurate Consensus Criteria The criterion for quarterly analyst EPS accuracy is the average of the analyst s absolute errors for the last two quarters Most Accurate Recommendations Recommendation performance rates analysts based on the accuracy of their recommendations Zacks uses two measures to evaluate an analyst s ability to rate stocks Win Percentage and Excess Return A Win is recorded for each analyst s recommendation that beat the per
57. ex during the recommendation period Doc To Help Standard Template Period of Evaluation Eligibilitv Doc To Help Standard Template Annual EPS Accuracv Report Integrated Company Analysis Analyst Track Record MSFT File Ticker View Tools Help l9l sla EI Biel 2 el Price Action Estimates Snapshot Co vsind PeerAnalysis of ben zl 9 cane fatsa dl Ticker MSFT Zacks Rating Buy Last Update 02 16 2000 Company Microsoft Corp EPS 0 47 12 1999 Report Date R 01 18 2000 Industry Computer Software amp Svcs 03 2000 Report Date E 04 18 2000 Curr Rating amp Ests Rating Performance Ann Est Accuracy Qtr Est Accuracy ANALYSTS ANNUAL ESTIMATES MONTHS ANALYST BEAT CONSENSUS Analyst 4 06 1997 06 1996 Specker M Soundview T 1 67 t 01 19 2000 1 92 1 01 19 2000 6 0 0 Not Ident Not Ident 1 67 12 23 1999 1 87 12 16 1999 6 1 0 0 Shepich S Olde Discou 1 70 10 20 1999 6 7 1 0 Maxick J Madison Sec 1 69 1 01 20 2000 1 96 01 20 2000 6 7 6 D Stanek M Lehman Brot 1 64 01 19 2000 6 12 6 W Not Ident Not Ident 1 64 12 20 1999 6 3 D D Scocozza R Bear Steam 1 69 t 01 18 2000 1 95 01 13 2000 5 4 e 4 Young D Paine Webbe 1 70 01 19 2000 1 95 12 23 1999 5 1 0 D Senk M Robertson S 1 66 f 01 19 2000 1 83 12 23 1999 5 5 3 D Sherlund R Goldman Sac 1 63 12 23 1999 4 6 7 6 Herman N Salomon Smi 1 66 12 24 1999 2 00 4 01 19 2000 4 10 3 D Dunkerley P Sec Corp 1 91 10 19 1999 4 1 0 D Lederman L
58. fault Company vs Industry Analysis uses the Value txv Ratio Set Edit or create a Ratio Set using the Ratio Set Editor Ratio Set Editor Create a new Ratios Set or edit an existing one using the Ratios Set Editor Creating Ratio Sets Ratio Set Editor D zir INPUTS momentum txy Ratio Set Full Ratio List lt lt Add Categories Price Momentum Fundamental Ratios Change Price 1 Week vs Industry gt gt Remove Broker Recommendations Change Price 52 Weeks vs Industry e lear EPS Momentum Growth Rates Valuation Benchmark Indu Ratios 5 Price and Price Changes C Change Price 1 Week S amp P 500 Change Price 4 Weeks Number Change Price 12 Weeks Change Price 24 Weeks mi Change Price Year to Date Change Price 52 Weeks Current Price vs 52 Week High Current Price vs 52 Week Low Volume Volume vs Shares Dut Save Save As Cancel Sereas Ge To create a new Ratio Set open the Tools menu then select Ratio Set Editor or click the Ratios Editor button on the tool bar The Edit Ratio dialog box appears For new ratios set file enter the ratio set name in the File name box then click Yes A Ratio Set Editor dialog box will appear The Ratios Set section will be empty From the Full Ratio List section select a category Available ratios from that category will display in the Ratios section Highlight a ratio fr
59. formance of an equal weighted industry index for all buy and sell ratings Ties are broken by measuring how much the average buy recommendation was in excess of the average industry performance The final results are expressed in terms of Strong Buy Buy Hold Sell or Strong Sell Most Recent Consensus The average of the most recent 25 of analysts annual or quarterly estimates and recommendations dates displayed in blue Estimates e 29 Zacks Consensus Zacks consensus is computed for the current and next fiscal vear estimates current and next fiscal quarter estimates and recommendations The Zacks consensus is the average mean of all analvsts estimates or recommendations for the companv Custom Consensus Custom consensus lets vou compute vour own consensus for ratings or annual and quarteriv EPS for example create a custom consensus to include analysts only from national brokerage houses To create a custom consensus de select the box next to the analyst s name you wish to exclude As each boxes is unchecked your custom consensus will automatically be calculated Rating Performance Report Integrated Company Analysis Analyst Track Record MSFT BEE File Ticker View Tools Help gt Ka 8 mimjel a gl Picescion Eximaes Snapshot Gig PeerAnabs per lge g Ticker MSFT Zacks Rating Buy Last Update 02 16 2000 Company Microsoft Corp EPS 0 47 12 1999 Report Date R 01 18 2000 Industry Computer S
60. he Peer List dialog box will be displayed Select multiple companies by holding SHIFT and pressing the UP DOWN arrow keys to highlight selection To select one company at a time hold down the CTRL key and click the company name To de select a company click on its highlighted name Click OK The Ratios History report will display historical data for the ratio you selected To return to the Peer Analysis menu click the Peer Analysis access button Peer Analysis e 51 52 e Peer Analysis Working With Ratio Set Editor Creating Ratio Sets r Ratio Set r Full Ratio List lt lt Add Categories Fundamental Ratios Broker Recommendations EPS Momentum Price Momentum Growth Rates Book Share Growth Last 5 Years vs Industry gt gt Remove Dividend Growth Last 5 Years vs Industry Sales Growth Last 5 Years vs Industry Clear Annual Sales Growth F 0 F 1 vs Industry Change Net Income Q 0 Q 4 vs Industry Est EPS Growth Next 3 5 Years vs Industry Benchmark EPS Growth Last 5 Years vs Industry Industry Ratios Change Act EPS Q 0 Q 4 vs Industry Pio IT istorical arov Book Share Growth Last 5 Years C S amp P 900 Dividend Growth Last 5 Years Number Sales Growth Last 5 Years Annual Sales Growth E Annual Sales Growth F 0 F 1 Sales 12 Month Trailing Growth 12 Mo Sales this Qtr vs 12 Mo Sales 40 12 Mo Sales last Otr vs 12 Mo Sales 5 Quarterly Sales Growth qtr prior qtr
61. hen press Next The Overlav List menu reappears specifv the appearance of the overlav lines stvle weight color marker and axes then click OK Adding Absolute Aggregate Price Overlavs To view how a companv performed versus its respective sector industrv or S amp P 500 use the Aggregate Prices overlays To add the Absolute Aggregate Price overlay for the active company ticker select a company ticker from the Ticker pull down menu located to the left of the Get Report button Open the Chart menu select Chart Settings then New Settings The Chart Options dialog box will appear Click the Overlays List tab then click Add The Select Overlay Type dialog box will appear De select the Current Ticker box Select Aggregate Price and Absolute options by marking the radio buttons then click Next The Select Aggregate dialog box appears Open the Class menu highlight the aggregate you want to add By default ICA will pick the company relevant Industry or Sector The Associated check box will be marked If you do not want the related Industry or Sector de select the Associated box Some aggregates will also allow you to select from displaying either the Median or Market Cap weighted values After finishing the aggregate selection click Next The Overlay List menu will appear specify the appearance then click OK Adding Absolute Aggregate Fundamental Overlays To view how a company performed versus its respective sector
62. icker List Selecting Ticker List for Custom Peer Groups To select a Ticker List for the Peer Analysis report open the File menu select Open Select a Ticker List to open then click OK The specified Ticker List will become active Open the Tools menu select Custom Peer Group Peer Analysis Components The Peer Analysis report allows you to display various fundamental ratios from up to six Ratio Categories It also shows the companies in the Peer Group All the data is displayed in the Information Table and a Fundamental ratios comparison chart Peer Analysis Ratio Categories Peer Analysis displays information from up to six ratio categories EPS Momentum Fundamental Ratios Broker Recommendations Growth Rates Valuation and Price Momentum To toggle between these ratio categories highlight the category name you wish to see displayed in a report Information for the items in the selected category will display in the Information Table in the lower section of the Peer Analysis report If the ratio set does not contain ratios from each of the six categories you must select from the displayed categories only Doc To Help Standard Template Peer Analysis e 49 50 e Peer Analysis Peer Analysis Information Table imiegraimal Cue Leake Fem Grass Fi Haim Geb SRR AALE TA Eu Debu Wes Teh W FEHLEN Hihi Ral 815 ERER FET IMI kd ERGA TIT BE Financial data for the selected ratio categorv appears in the Informa
63. icker list files are in a tab delimited format txt Use the Ticker List created with any Zacks screening application Guided Tour e 5 6 e Guided Tour Creating Companies Ticker List To anayze a specific set of companies portfolio create a Company ticker list to be used in ICA Open the Ticker menu then select Companies or click the Companies button on the ICA toolbar The Ticker List dialog box will appear Enter a ticker symbol in the Add Ticker List box Click Add or press Enter For entering more than one ticker at a time use a space or a comma to separate each ticker symbol To view a list of all companies in the database select Browse The Ticker List dialog box will expand to display all companies available for selection Use the scroll bar to browse the Full Universe selection Expanded Ticker List B A DOA IHC EI ii Badd ALD ALLIED SGMAL a AREA Pr Ss CH Frew TA E BOEING CH AACE BCE CASH EMPRES E U NEEDLUIF RK Beta Ai AAG SHER AMMLITY GP xi LATER LAA FI ae CHEDE S BFEGET CHN CREWROH BK Ad AJLA A LH CE fi D FI En Ge S it APFLD AMAL Tic ie DME T waT Aid A HATAL HDH Ej BAS TAA 60 Dude AN Bibi ES FAH OLEL BE OEWL ELECTR ASHE ATLANTIC AERCH i GEKLMOIGAS ahd ARN ALHAO HLDG BP ODEAR TIRE ml TIT Spil Ce To create a multiple company Ticker List select tickers by holding down the CTRL key and highlighting your selection Next click lt lt Add then OK Selected ticker
64. icted in the number of dashes comprising the arrow a surprise of 0 is shown as red and green triangles e Upto 10 Surprise one arrow e 10 20 Surprise two arrows e 20 30 Surprise three arrows e 30 40 Surprise four arrows e Above 50 Surprise solid arrow line Broker Recommendations The average of analyst ratings for the company Strong Buy 1 Buy 2 Hold 3 Sell 4 Strong Sell 5 This overlays uses and inverted scale Quarterly EPS Quarterly Actual Earnings per Share 12 Month EPS 12 Month Actual Earnings per Share Annual EPS Annual Actual Earnings per Share Return on Equity ROE calculated as 12 Month EPS Book Value per Share Return on Assets ROA calculated as 12 Month EPS Total Assets per Share Quarterly Sales Quarterly Net Sales or Revenues Annual Sales Annual Net Sales or Revenues Quarterly EPS Trend Actual and Consensus Estimate Quarterly Earnings per Share 12 Month EPS Trend 12 Month Actual and Consensus Estimate Earnings per Share Quarterly Net Income Quarterly Net Income Data Annual Net Income Doc To Help Standard Template Annual Net Income Data Zacks Indicator Zacks Indicator Equitv selection model composite rank 1 99 The companies that appear most attractive for purchase are ranked 1 and companies with the worst predicted performance are ranked 99 Ranks between 20 and 80 are considered neutral and should be ignored anv changes in the scor
65. ing down SHIFT and highlighting your selection To select one Index at a time hold down the CTRL key and click the Index name Click OK ICA Folders Zacks Databases la tt s s H Ticker List fesizinkportek je Ratio Set oizininputsk 00 E Dutput fc kzirkoutputb 00 E Cancel To view ICA settings choose the Folders command from the Tools menu The Default Folders dialog box will appear displaying the location of Zacks databases when applicable Ticker Lists Ratios Sets and export directory Output Printing ICA Reports To print the report select Print from the File menu or click the Print button Exporting ICA Reports Export ICA reports data to Excel or copy the report to the Windows clipboard Snapshot reports can only be copied to the clipboard Exporting to Excel To export data after displaying a report open the Tools menu then select Export Select Export Data to Excel the Save As dialog box will appear Enter the export file name csv then click OK The file is saved in the comma delimited format csv The location of the export folder is determined by your output folder settings ICA will automatically launch the Excel application and the exported file will be opened in Excel Copying Data to Clipboard ICA charts and graphs can be copied to a clipboard and used in presentations and marketing materials To create a chart open the Tools menu then select Export and click Copy to Clipboard the acti
66. ing of long equities hedged at all times with short sales of stocks and or stock index options HFRI Equity Market Neutral Index plot This Index tracks performances of those hedge funds whose managers investing style is purely Equity Market Neutral i e investing seeks to profit by exploiting pricing inefficiencies between related equity securities neutralizing exposure to market risk by combining long and short positions HFRI Event Driven Index plot This Index tracks performances of those hedge funds whose managers investing style is purely Event Driven corporate life cycle i e involves investing in opportunities created by significant transactional events such as spin offs mergers and acquisitions bankruptcy reorganizations re capitalizations and share buybacks Lehman Treasury Long Index plot The Lehman Treasury Long Index is a subgroup of the Shearson Lehman Treasury Index based on maturity The Doc To Help Standard Template Appendix e 57 58 e Appendix Lehman Treasurv Index consists of public obligations of the U S Treasurv with a remaining maturity of one year or more MSCI EAFEE Index plot The Morgan Stanley Capital International Europe Australasia Far East Index The MSCI EAFE is a stock index designed to measure the investment returns of the developed countries outside of North America Prudential Style Indices Large Growth Large Value MidCap Growth MidCap Value Small Grow
67. ker currentiv displaved in the Tickers pull down menu Annual Analvst The difference between the actual EPS and the analvst s EPS estimate averaged over 12 month ends Annual Consensus The difference between consensus estimate and actual EPS averaged over 12 month ends Cache A temporarv storage place on the hard drive for recentiv accessed data Chart Definitions User defined combinations of price charts and overlavs Consensus An average of all analvst estimates or recommendations or a specific set of analvst forecasts or recommendations as noted Default Browser A user preferred browser that is identified in the Windows Operating Svstem as the one to use for surfing the Net Delimited Text File Tvpe Separated bv tab characters commas or spaces Most Accurate EPS Consensus The most accurate EPS consensus displayed in red is computed by ranking the analysts historical performance The bottom third of analysts with the lowest historical performance are not used The most accurate EPS consensus is the average of the top quartile of the analysts making forecasts for whom we have history that did not rank in the bottom third historically Most Accurate Recommendations The ranking criteria for historical ratings accuracy is Win A Win is recorded for each analyst s recommendation that beat the performance of an equal weighted industry index for all buy and sell ratings Ties are broken by measuring how much the averag
68. l cap growth stocks have historical sales growth greater than 10 rank in the top half of the I B E S forecast growth rate and have low payouts and debt capital ratios Small cap value stocks rank in the bottom 50 of the universe based on a normalized P E Additionally companies that are dividend paying must have sustainable dividend rates Shares outstanding according to FactSet are used to determine market value Russell Indexes Copyright Frank Russell Company 1995 1999 All rights reserved Russell 1000 Index Total Return plot The Russell 1000 Index measures the performance of the 1 000 largest companies in the Russell 3000 Index which represents approximately 89 of the total market capitalization of the Russell 3000 Index Russell 10006 Growth Index plot The Russell 10006 Growth Index index measures the performance of those Russell 1000 companies with higher price to book ratios and higher forecasted growth values Doc To Help Standard Template Doc To Help Standard Template Russell 10006 Value Index plot The Russell 10006 Value Index measures the performance of those Russell 1000 companies with lower price to book ratios and lower forecasted growth values Russell 20006 Small Stock Index Total Return The Russell 2000 Index measures the performance of the 2 000 smallest companies in the Russell 3000 Index which represents approximately 11 of the total market capitalization of the Russell 3000 Index
69. lay function s when an active ticker is a Company Display Fundamental Absolute ratios overlays for the active ticker Display Fundamental Relative ratios overlays for the active ticker Add new Company ticker Company Price Absolute Add new Company ticker Company Price Relative Add new Company ticker Company Fundamental Absolute Add new Company ticker Company Fundamental Relative Add new Aggregate ticker Price Absolute Add new Aggregate ticker Price Relative Add new Aggregate ticker Fundamental Absolute Add new Aggregate ticker Fundamental Relative Add New Index ticker Price Absolute Price Action e 21 22 e Price Action b Possible overlav function s when the active ticker is an Aggregate Display Fundamental Absolute ratios overlays Display Fundamental Relative ratios overlays Add new Aggregate Ticker Add new Aggregate Price Absolute Add new Aggregate Price Relative Add new Aggregate Fundamental Absolute Add new Aggregate Fundamental Relative Add new Company Ticker Company Price Absolute Add new Company Ticker Company Price Relative Add new Company Ticker Company Fundamental Absolute Add new Company Ticker Company Fundamental Relative c Possible overlay function s when the active ticker is an Index Add new Company Ticker Company Price Absolute Add new Company Ticker Company Price Relative Add new Company Ticker Company Fundamental Absolute e Add new
70. les Growth Change FI2 Est 12 Weeks vs Industry Annual Sales Growth F DJ F 1 Price Momentum Sales 12 Month Trailing Growth Change Price 4 Weeks vs Industry Current Price vs 52 Week High vs Industry Growth Rates Dividend Growth Last 5 Years vs Industry ka Lech sebrul E slaa Dees sot E Vasra fina 12 Mo Sales this Qtr vs 12 Mo Sales 4Q 12 Mo Sales last Qtr vs 12 Mo Sales 5 Q Quarterly Sales Growth qtr prior gtr Change Sales Q 5 Q 6 xl Chanae Sales fil A1 7l FI Save As Cancel To edit a previously created Ratio Set open the Tools menu select Ratio Set Editor or click the Ratios Editor button The Edit Ratio dialog box appears Select a file then click Open A Ratio Set Editor dialog box will display To remove a ratio from the list highlight that ratio from the Ratio Set list and click the gt gt Remove button To add a new ratio to the Ratio Set highlight a Ratio Category from the Full Ratio List A list of available ratios from that category will display in the Ratios list Highlight a ratio from the Ratios list Use the scroll bar to view all available ratios Specify the benchmark select from Industry Sector S amp P 500 or number When using a Number option as your benchmark type the desired value in the Number box To add a selected ratio click the lt lt Add button The ratio will display in the Ratio Set section ratios will be added to their corresponding categorie
71. lity and helps to relate and interpret the financial ratios for asset management debt management and profitability It also calculates return on shareholder equity ROE After Tax Profit Margin x Total Asset Turnover x Equity Multiplier The reports in this category include e Annual Return on Equity ROE Decomposition 5 years e Quarterly Return on Equity ROE Decomposition 8 quarters Doc To Help Standard Template Risk Rating Bankruptcv Reports In addition we have included two Risk Rating Bankruptcy reports presented annually for the last 5 years and quarterly for the last 8 quarters These reports show what the company would be worth upon liquidation The Net Liquidation Value is the amount that could be realized by selling the assets of a firm after paying the debt The reports in this category include e Annual Risk Rating Bankruptcy Report displays annual growth rates and components of Net Liquidation Value e Quarterly Risk Rating Bankruptcv Report displays quarterly growth rates and components of Net Liquidation Value Business Description amp Management Discussion Reports Business Descriptions Reports A complete overview of the business of the company from the last 10 K filings Management s Discussion and Analysis Reports Management s Discussion and Analysis report Management s Discussion and Analysis of Financial Condition and Results of Operations is a report from management to the shareholders
72. lvsis Doc To Help Standard Template Overview The Companv vs Industrv Analvsis report is great for showing how one particular stock measures against your favorite stock picking criteria You can graphically evaluate the investment attractiveness of a company versus the industry median On the Company vs Industry Analysis charts the bar representing the company is colored yellow and the bar representing the benchmark is colored gray If a company s ratio beats the benchmark the variance bar is colored green If a company s ratio does not beat the benchmark the variance bar is colored red For items where the lower number is better for example Average Broker Rating the variance bar will be colored conversely below the benchmark will be green and above the benchmark will be red Company vs Industry Analysis Report Components The Company vs Industry Analysis report can contain ratios from up to six different categories EPS Momentum Fundamental Ratios Broker Recommendations Growth Rates Valuation and Price Momentum Peer Analysis and Company vs Industry Analysis use the same set of ratios When you create or edit the ratio set it can be used with both the Company vs Industry Analysis and Peer Analysis reports Company vs Industry Analysis e 45 Companv vs Industrv Analvsis Ratio Sets What ratios are displayed in the report is determined by the special Ratios Set file By de
73. mmendations made by the analyst for the company in the last five years WIN Win Percentage The percent of the recommendations that outperformed an equal weighted industry index The WIN is a measure of the analyst s ability to identify stocks that have superior or inferior performance compared to that of the industry The WIN gives credit to both buy and sell ratings if subsequent to the rating the stock performs as predicted in relation to its industry s group s equal weighted index It is not meant to measure the magnitude of a stock s performance in relation to that of the industry rather the degree to which the direction of the analyst s rating was accurate See the Appendix section Estimates Reports Methodology for details and calculation descriptions Average Buy Return MO The average number of months the stock was recommended as Buy by the analyst RET The average return of each Buy recommendation IND The average return of an equal weighted industry index during the same period as the stock recommendation EXC An approximation of a wealth index Excess Return reflects the difference between the average return calculated for the analyst s buy recommendations and the average returns of the equal weighted industry index for the period during which the recommendations were in effect The Excess Return evaluates what an investor s profit could have been if he or she had diligently acted upon the an
74. nding Overlay Options 21 Using Chart Definitions 11 25 Creating New Chart Definitions 22 Index e 71 Zacks Chart Definitions 62 Z Zacks Peer Group 49 Zacks Rank 28 43 72 e Index Doc To Help Standard Template
75. ng to sort the column Number of Month Analyst Beats Consensus There are four columns in the of Month Analyst Beats Consensus display Each column represents one of the past four company s fiscal years identified by that fiscal year end date For each year we look at the analyst estimate 12 times during that year at each month end We then compare that estimate with the consensus on that date and note if the analyst was more accurate than the consensus As the result the number of months out of 12 observations when the analyst s absolute forecasting error was less than the consensus absolute error is then shown in each column Quarterly EPS Accuracy Report Integrated Company Analysis Analyst Track Record MSFT File Ticker View Tools Help 5 S S Blelej al 2 1 Froeacion Estimates Snapshot Co vsind Peer Analysis MEE MSFT z g Get Report fabsracts 2 Ticker MSFT Zacks Rating Buy Last Update 02 16 2000 Companv Microsoft Corp EPS 0 47 12 1999 Report Date R 01 18 2000 Industry Computer Software amp Svcs 03 2000 Report Date E 04 18 2000 Curr Rating amp Ests Rating Performance Ann Est Accuracy Qtr Est Accuracy ANALYSTS QUARTERLY ESTIMATES ESTIMATE ERRORS 03 1999 12 1998 Specker M Soundview T 0 42 01 13 2000 0 41 f 01 19 2000 0 03 0 04 0 01 006 Not Ident Not Ident 0 43 12 23 1999 0 42 f 10 20 1999 0 04 0 04 0 02 0 06 Shepich S Olde Discou
76. number of buy and sell ratings issued for the last five years Win Total Number of Wins Total Number of Recommendations A Win is awarded if 1 a stock for which the analysts issued a buy rating outperformed the equal weighted industry index during the period that the stock was rated a buy or 2 a stock for which the analyst issued a sell rating under performed the equal weighted industry index during the period where a sell recommendation stood In both cases the performance of the stock and the index include appreciation depreciation and dividends Example Win Calculation Industry Analyst Stock Count Return Count Index Win Autos A Ford 5 7 0 Ford 3 2 1 Ford 4 1 1 DaimlerChrysler 3 5 0 DaimlerChrysler 11 4 1 Average 2 5 3 60 B GM 8 9 0 DaimlerChrysler 3 2 1 Ford 2 4 0 Average 3 3 1 33 Individual Wins are calculated as follows 1 Within a given industry calculate the Holding Period Return for each stock HPRs for which the analyst has issued a buy or sell rating For buy ratings upps P2 P1 D P For sell ratings HPRs PP D P where P4 Closing Price on day bay sell was issued by the analyst P2 Closing Price on day buy sell was removed by the analyst D Dividends if any If the rating is in effect at the end of the measurement period P2 is the closing price on the last day of the measurement period 2 Calc
77. o Help Standard Template Modifving Volume Plot Vou can change the appearance of the Volume plot lines as well as the amount of space Volume lines occupv on the chart Volume lines Open the Ghart menu choose Chart Settings then Current Settings The Chart Options dialog box will be displaved Click the General Options tab Highlight the Volume option in the Chart Item section of the Chart Options dialog box To change the stvle weight and color of the Volume plot line and specifv axes select new stvles from pull down menus Click OK Editing Volume lines spacing Volume charts occupy the lower part of the Price Action screen To change the amount of space Volume lines occupy on a chart open the Chart menu choose Chart Settings then Current Settings The Chart Options dialog box will be displayed Click the General Options tab In the Volume occupies window section use the adjustment bar to specify the screen space taken by the volume chart Click OK Adding or Deleting Chart Gridlines Open the Chart menu choose Chart Settings then Current Settings The Chart Options dialog box will be displayed Click the General Options tab In the Gridlines box select appropriate check boxes Click OK Understanding Overlay Options The list of available overlays depends on whether the active ticker is a Company an Aggregate or an Index You may display an almost unlimited variety of overlay combinations a Possible over
78. oftware amp Svcs 03 2000 Report Date E 04 18 2000 Curr Rating amp Ests Rating Performance Ann Est Accuracy Qtr Est Accuracy ANALYSTS RATING ALL RUNS AVERAGE BUY RETURN BEST BUY RETURN RECOM WIN Scocozza R Bear Steam 10 31 1997 Christoph D Crowell Wee 11 01 1999 Specker M Soundview T 10 20 1998 Brosseau Sg Cowen Se SB 10 20 1999 Sherlund R Goldman Sac 04 19 1996 Not Ident Not Ident 12 11 1998 Young D Paine Webbe 12 16 1998 Geran M Pershing Si 09 23 1999 Maxick J Madison Sec 11 12 1996 Herman N Salomon Smi 12 04 1997 Stanek M Lehman Brot 01 13 1997 O Brien T Branch Cabe 06 11 1999 Russell A Edward Jone B 12 30 1996 Galvin C Chase H amp Q 3 04 19 1996 Crook D Prudential 07 20 1999 Roskill A Warburg Dil 04 15 1999 Select up to 5 Analysts to be Plot History included in Plot r r r c r r r r r r r r r r r r This report shows you the best runs of each analyst for the past five years A run is a time period during which the analyst was recommending the stock a Strong Buy or a Buy If an analyst had more than one run during a period we only display the best run This report allows you to evaluate how individual analyst s recommendations performed in the past and whether the analysts have been successful in making recommendations for the company You can also view a chart with the analyst s ratings history from the moment he or she began cov
79. om the Ratios list Use the scroll bar to view all available ratios Specify a benchmark select from Industry Sector S amp P 500 or number When using the Number as your benchmark enter in the desired value in the Number box To add a selected ratio click lt lt Add The ratios will display in the Ratio Set section ratios will be added to their corresponding categories To delete all ratios click Clear When the ratio set is complete click Save You may select up to 14 ratios from the same category 46 e Company vs Industry Analysis Doc To Help Standard Template Editing Ratio Sets Ratio Set Editor XzirkINPUT S Walue txv Ix Ratio Set Full Ratio List lt lt Add Categories Fundamental Ratios a Fundamental Ratios Operating Margin 12 Months vs Industry gt gt Remove Broker Recommendations Chg in Oper Margin 12 Mo 5 Yr Avg vs Industr EPS Momentum Return on Assets 12 Months vs Industry Clear Price Momentum Retum on Equity 12 Months vs Industry Debt Total Capital Most Recent vs Industry Rec Turnover 12 Months vs Industry Benchmark Broker Recommendations Industry Bt Average Broker Rating 1 5 vs Industry cs Rating Buy Str Buy vs Industry ector Historical Growth tt Rating Upgrades 4 Weeks vs Industry C SiP500 Book Share Growth Last 5 Years Zeie Rtg Total 4 weeks vs Industry TEE SE omentum Change F 1 Est 12 Weeks vs Industry ie Annual Sa
80. ous elements of your charts colors lines and text attributes for the background price and volume elements Gm pip To change chart appearance open the Chart menu choose Chart Settings then Current Settings The Chart Options menu will be displayed Click the General Options tab Select the element you want to change and click OK Changing Background Color for the Chart Open the Chart menu choose Chart Settings then Current Settings The Chart Options menu will be displayed Click the General Options tab Highlight the Background option in the Chart Items section of the Chart Options dialog box Select a new color from the palette box Click OK Changing Labels and Borders Color Open the Chart menu choose Chart Settings then Current Settings The Chart Options dialog box will be displayed Click the General Options tab Highlight the Labels and Borders option in the Chart Items section of the Chart Options dialog box Select a new color from the palette box Click OK Modifying Price Plot Open the Chart menu choose Chart Settings then Current Settings The Chart Options dialog box will be displayed Click the General Options tab Highlight the Price option in the Chart Item section of the Chart Options dialog box To modify the style weight and color of the price plot line and specify axes labels select new styles from the pull down menus Click OK Doc To Help Standard Template Doc T
81. r end data for the last four and next two quarters and estimated earnings projected 1 2 and 3 5 years out While not intended for use as a technical analysis tool the price chart provides a visual representation of how the stock has been trading relative to its past growth in earnings as well as how Wall Street perceives its future earnings growth prospects EPS Surprises and Estimate Revisions Chart 9 A plot of the EPS surprises for the last four quarters and the 12 week earnings estimate revisions for the current and next fiscal years are displayed in a bar graph below the price chart Earnings surprises are the percent by which a company s earnings exceed or fall short of the consensus estimates for a company on the EPS report date Company vs Industry Comparison 10 The table located at the bottom of a Snapshot report provides an overview of how a company measures against its industry peers and the overall market on a number of key measures This data includes year to date price change P E 12 month estimated 3 5 year EPS growth rate Price Book Snapshot e 43 Price Sales Price Cash Flow implied return to P E ratio dividend vield Net Margin ROE and Debt Capital The industrv comparable data is most useful for relativelv homogeneous industries Zacks large number of industrv classifications over 200 helps to insure comparabilitv between companies 44 e Snapshot Doc To Help Standard Template Companv vs Industrv Ana
82. r the stock price responds to EPS surprises Relative Price amp Surprise This chart overlays EPS Surprises with the stock price relative to S amp P 500 The chart shows whether the stock price responds to EPS surprises An upward sloping relative to S amp P 500 price line indicates that stock is outperforming the market whereas the downward sloping line indicates that the stock is under performing the market Broker Recommendations This chart shows whether the stock price responds to changes in broker recommendations Price amp Consensus This chart shows whether the stock price responds to changes in consensus estimates for the fiscal year Relative Price amp Consensus This chart overlays Consensus estimates with the stock price relative to S amp P 500 The chart shows whether the stock price responds to changes in consensus estimates for the fiscal year An upward sloping relative to S amp P 500 price line indicates that stock is outperforming the market whereas the downward sloping line indicates that the stock is under performing the market Appendix e 61 62 e Appendix Indicator amp Relative Price The Zacks Indicator is the estimate revision and earnings surprise model that predicts the direction and magnitude changes in stock prices How the Indicator Ranks are Derived Estimate revision activitv and earnings surprises are measured for all companies and a raw score is created Companies are then ranked relativ
83. roduct is comprised of the following components Price Action analyzes the price impact of fundamentals Price Action reports overlay price charts with the EPS Surprises Consensus Estimates Annual Quarterly or 12 month EPS Zacks Indicator ROE ROA Broker Recommendations Sales or Net Income data You can also analyze company performance versus another company Industry Sector S amp P 500 or other major market indexes Estimates displays the flow of estimate revisions and recommendations from over 300 brokerage firms and individual analyst s track record The Estimates reports display the latest information on individual broker recommendations annual and quarterly EPS estimates and revisions analyst Consensus and Zacks Ratings for over 6 500 companies Estimates provide Analyst Track Record and Analyst Ratings History data Snapshot view a single company report Includes price EPS surprises and estimate revisions charts along with the company s description and fundamental data Company vs Industry Analysis use charts to see how a company is performing versus the industry median sector median S amp P 500 or a specific number based on a wide range of fundamentals Peer Analysis compare a company s fundamental data to companies in the same industry or your custom peer group Peer Analysis reports include graphs and data tables for various financial ratios Internet Based Reports analyze various fundamental data tables
84. s To delete all ratios click Clear When the ratio set is complete select the Save As button to save the ratio set file under a new name choose Save to overwrite the existing file Selecting Ratio Sets To select a new default ratio set open the Tools menu select Select Ratio Set The Select Ratio Set dialog box will appear Select a Ratio Set file then click Open Doc To Help Standard Template Company vs Industry Analysis e 47 Heer Analvsis 48 e Peer Analysis Overview With the Peer Analvsis reports vou can graphicallv compare anv active ticker on the current Ticker List portfolio with its peers based on historical sales net income past and future EPS brokerage firm recommendations or manv other investment criteria The Peer Analvsis report displavs ratios from the ratio sets that can be edited to match vour own decision making process and can be customized to match your requirements Bv default Peer Analvsis is using Zacks Peer Group called Automatic Peer Group You can use the Custom Peer Group option to view the group of companies that vou put together Zacks Peer Group Bv default Peer Analvsis will select a Zacks Peer Group for the active ticker on the current Ticker List portfolio The Peer Analvsis automaticallv selects a Peer Group of companies in the same industrv as the selected companv The company s industry assignment is based on Zacks Expanded Industry Cla
85. s taskbar Fundamental Reports Income Statement Balance Sheet and Cash Flow tables There are several Income Statement Balance Sheet and Cash Flow tables presented annually for the last 5 years and quarterly for the last 8 quarters available in this category of the Internet Based reports Please note that the line items shown in these tables may not exactly match the line items on the 10 K and 10 Q reported by the company as Zacks has standardized a number of items to facilitate comparison between companies The reports in this category include e Annual Cash Flow Statement standardized report containing data from 10K filings e Annual Income Statement standardized report containing information from 10K filings e Annual Balance Sheet standardized report containing data from 10K filings e Quarterly Balance Sheet standardized report containing data from 10Q filings e Quarterly Income Statement standardized report containing data from 10Q filings e Annual Ratios amp Turnover Rates Assets Liabilities ratios turnover rates and sales ratios e Quarterly Ratios 8 Turnover Rates Assets Liabilities ratios turnover rates and sales ratios Return on Equity Reports There are two Return on Equity reports presented annually for the last 5 years and quarterly for the last 8 quarters These reports use the extended DuPont model ROE Decomposition The ROE Decomposition model measures a company s profitabi
86. s will appear in the Tickers menu To save a Ticker List select Save from the File menu The list will be saved in a tab delimited format txt Editing Companies Ticker List To remove companies from the Ticker List open the Ticker menu then select Companies The Ticker List dialog box will appear Select tickers to be deleted by holding down the CTRL key and highlighting your selection Click the Remove button then OK to remove all tickers click Remove All To remove a single company select a ticker symbol from the Tickers menu then select the Remove Ticker command from the Ticker menu Using Existing Ticker List To open an existing Ticker List open the File menu and select Open The Open dialog box appears Enter the file name txt or select a file from the list and click Open ICA contains a sample Companies Ticker List myportf txt that also can be used Doc To Help Standard Template Creating Aggregates Ticker List Aggregate List BMerospace Zacks Sector Auto Tires Trucks Zacks Sector Basic Materials Zacks Sector Business Services Zacks Sector Computer and Technology Zacks Sector Conglomerates Zacks Sector Construction OK Zacks Sector Consumer Discretionary Zacks Sector Consumer Staples sl Cancel Remove Remove All Available Aggregates Add to List BH RSC RSR SEN Class Aggregate Zacks Sector Auto Tires Trucks Zacks M Industry Basic Materials S amp P
87. sales growth rates for sales EPS and dividends for the past five vears and Zacks Performance Ranking Zacks Performance Rank Research has shown that one of the most powerful forces driving a stock performance is change in earnings estimates from brokerage analysts The Zacks Rank also called Zacks Rating is a short term trading indicator based primarily on the momentum of revisions in analysts earnings estimates The ranking ranging from 1 Strong Buy to 5 Strong Sell has been shown to be an accurate predictor of stock price performance relative to the market for the coming 90 180 days Company Type The company type is based on its Market Cap and Price Book ratio Market Cap Price Book lt 800 mil Small lt 1 75 Value gt 3500 mil Large gt 3 5 Growth gt 800 mil and lt 3500 mil Mid gt 1 75 and lt 3 5 Blend Business Description The brief business description provided beneath the summary table Broker Recommendations Data and Charts 2 The Average Broker Recommendation is highlighted and the number of analysts who have revised their opinion of the stock up or down in the past four weeks is noted The recommendations which are updated continuously based on information Zacks receives from brokerages firms are broken into five categories Strong Buy Buy Hold Sell Strong Sell The convenient histogram format allows you get a quick feel for both th
88. ssification 200 codes A Peer Group can contain up to eight companies Reported annual sales numbers are basis for selection to Peer Group i e companies in the same industry with the similar sales volumes will be grouped together Custom Peer Group To view a Peer Analysis report for all companies on your current Ticker List portfolio select Custom Peer Group from the Tools menu Selecting Companies for Custom Peer Groups Ticker List r Ticker List AOL Add Browse Ticker Company Name ALCOA INC ALD ALLIEDSIGNAL AXP AMER EXPRESS CO BA BOEING CO c CITIGROUP INC CAT CATERPILLAR INC CHY CHEVRON INC DD DU PONT El DE DIS DISNEY WALT EK EASTMAN KODAK GE GENL ELECTRIC GM GENL MOTORS GT GOODYEAR TIRE gt Remove Il Remove All OK Cancel Doc To Help Standard Template Selecting Custom Peer Group option will display the Peer Analysis report for all companies on your active Ticker List To create a Ticker List with companies for you custom group open the Ticker menu choose Companies or click the Companies button on the ICA toolbar The Ticker List dialog box will appear Click the Remove All button to clear the Ticker List In the Add Ticker List box enter a ticker symbol For entering more than one ticker at a time a space or a comma must separate each ticker symbol Click Add or press Enter then click OK when done Be sure to save and name your T
89. t 26 36 Average Buy Return 33 68 B Balance Sheet 55 Bankruptcy Reports 56 Best Buy Return 33 Beta 44 Broker Recommendations 43 57 Business Descriptions Reports 56 C Chart Frequency 13 Chart Settings 13 16 Clearing Temporary Internet Files 10 Company vs Industry 9 45 46 47 Consensus 30 Custom 31 Error 41 Overlays 58 Copy to Clipboard 8 Creating New Chart Definitions 22 25 Creating Ratio Sets 47 53 Custom Peer Group 49 50 E Editing Ratio Sets 48 54 Estimates 9 26 Current Fiscal Year 29 Next Fiscal Year 38 Quaterly 40 Zacks Rating 43 Estimates Report Methodology 67 Excess Return 30 33 68 Expected Return 43 Exporting ICA Reports 8 Doc To Help Standard Template H Historical Peer Analysis Charts 52 How WIN is calculated 67 ICA Ticker Types 5 Implied Return 43 Index Overlays 58 Industry Return 68 Insider 3 Insider Trading Report 56 Internet Based Reports 3 10 55 Management Discussion Reports 56 Market Risk 43 Mid Cap 59 P Peer Analysis 3 9 46 52 Peer Analysis Components 50 Peer Analysis Information Table 51 52 Peer Analysis Ratio Sets 51 Price Action 9 11 Q Quarterly EPS Accuracy Report 26 38 39 R Rating Performance Report 26 31 Ratio Set Editor 53 Recommendation Performance 33 Return on Equity Reports 55 Risk Rating 56 S Selecting Ratio Sets 48 54 Shareholder Data 44 Small Cap 59 62 Snapshot 9 42 T Ticker List 6 7 U Understa
90. tandard for measuring large cap U S stock market performance This index includes a representative sample of leading companies in leading industries S amp P500 BARRA Growth and Value Indices Companies in the S amp P 500 index are split into two groups based on price to book ratio to create growth and value indices The Value index contains companies with lower price to book ratios while the Growth index contains those with higher ratios S amp P 500 BARRA Growth Index plot a subset of the S amp P 500 companies with higher price to book ratios S amp P 500 BARRA Value Index plot a subset of the S amp P 500 companies with lower price to book ratios Wilshire Indices 1999 Wilshire Associates Incorporated Wilshire 5000 Value Weighted Total Perf Index plot The Wilshire 5000 Equity Index measures the performance of all U S headquartered equity securities with readily available price data Over 7 000 capitalization weighted security returns are used to adjust the index The Wilshire 5000 capitalization is about 81 NYSE 2 AMEX and 17 OTC The Wilshire 5000 Value Weighted Total Perf Index is a total return of index using capital weights Wilshire 4500 Equity Index plot The Wilshire 4500 Equity Index is the Wilshire 5000 securities with the companies in the Standard amp Poor s 500 Doc To Help Standard Template Doc To Help Standard Template Index removed The approximatelv 6 500 capitalization weighted returns
91. th Small Value Large Cap The Prudential Large Cap Style Indices are selected from stocks in the top 12 percentiles of market capitalization in the Compustat universe Large cap growth stocks have historical sales growth greater than 10 rank in the top half of the I B E S forecast growth rate and have low payouts and debi capital ratios Large cap value stocks rank in the bottom 50 of the universe based on a normalized P E Additionally companies that are dividend paying must have sustainable dividend rates Shares outstanding according to FactSet are used to determine market value Mid Cap The Prudential Mid Cap Style Indices are created by screening the eighth through twenty fifth percentiles of market value in the Compustat universe for companies with growth or value characteristics Mid cap growth stocks have historical sales growth greater than 10 rank in the top 50 of the I B E S forecast growth rate and have low payouts and debt capital ratios Mid cap value stocks rank in the bottom 50 of the universe based on a normalized P E Additionally companies that are dividend paying must have sustainable dividend rates Shares outstanding according to FactSet are used to determine market value Small Cap The Prudential Small Cap Style Indices are created by screening the twentieth through forty fifth percentiles of market value in the Compustat universe for companies with growth or value characteristics Smal
92. that accompanies the firm s financial statements in the annual report This report explains the period s financial results and enables management to discuss other ideas that may not be apparent in the financial statements in the annual report Insider Trading Report The most recent insider transactions as reported to the SEC are summarized here Insiders include major corporate officers members of the board of directors and owners of 10 or more of any equity class of securities Brokerage Research Reports and Their Abstracts Zacks summarizes the content of brokerage research reports made by the analysts following the company These abstracts include the sell side analysts recommendations and usually represent a 6 12 month outlook This report also provides the analyst s Track Record Our report library contains data from over 300 U S and Canadian brokerage firms providing research reports and their abstracts of more than 2 200 analysts covering 8 000 companies Doc To Help Standard Template Internet Based Reports e 55 Appendix 56 e Appendix Companv Overlavs Fundamental Overlavs EPS Surprises Quarterly EPS Surprise a measure of the deviation of Actual Quarterly EPS from Last Quarterly EPS Estimate calculated as ACT EPSQ LAST EPSQOJ Absolute Value of LAST EPSQO x 100 Positive surprises are represented by green arrows and negative surprises are represented by red arrows The magnitude of the surprise is dep
93. the past 12 years Daily Frequency displays daily prices and volume Volume is in actual shares expressed in thousands Daily prices are available for the past 1 5 years Changing Price Chart Frequency To change the price chart s frequency select Chart Frequency from the Chart menu then select a frequency option daily weekly or monthly Display Range Description General Options Chart Frequency Chart Type Overlay List Axis Options Display Range C Daily E months DI From Weekly 2 years DI From Is years DI From f0 OK Cancel Help ok The Display Range time period option is used to specify price chart frequency daily weekly or monthly Price Action e 13 14 e Price Action To access the Displav Range options open the Ghart menu choose Chart Settings and click Current Settings The Chart Options menu will be displaved Click the Chart Frequencv tab From the Displav Range menu specifv one of the following time periods for each frequencv then click OK Daily select 3 months 6 months 1 year 2 years or custom options Weekly select 1 year 2 years 3 years 5 years or custom options Monthly select 3 years 5 years 10 years or custom options Using Custom Display Range Description General Options Chart Frequency Chart Type Overlay List Axis Options Display Range Daily From 10 29 1998 24 C Weekly Custom D From
94. ting Analvst Rating Historv Charts The Analvst Rating Historv chart displavs Analvst Ratings as horizontal bars on the Price Action chart that was used last in place of volumes Each horizontal bar represents one analvst The color of the bar represents the recommendation as follows e Dark Green Strong Buy e Green Buy e Light Blue Hold e Light Red Sell e Red Strong Sell Estimates e 33 34 e Estimates e Empty NoRating Recommendations Details Integrated Company Analysis Analyst History MSFT OF x File Ticker View Chart Tools Help elle 8 ged 2 a Price Action Estimates Snapshot Co vs Ind Peer Analysis MSFT D Get Report Abstracts Recommend Hold Start Date 11 8 1333 End Date present Price change 6 48 Index change 5 24 99 91 99 10 1 99 1141199 1241199 12131199 2 1 00 lt lt 2 6 89 2 15 00 gt 4 4 Vou can also view the details of each recommendation bv moving vour mouse over the Analvst Ratings horizontal bar A data box appears containing the following information Recommendation Analvst rating expressed as Strong Buv Buv Hold Sell or Strong Sell Start Date The beginning date of the recommendation End Date The end date of the recommendation Price Change Stock s price change during the recommendation period dividend are not included Index Change The change in relevant Zacks X Industrv Price Ind
95. tion Table in the lower section of the Peer Analvsis report To view a graph of each ratio displaved in the table click the column title in the Peer Analvsis Information Table Peer Analvsis Ratio Sets What ratios are displayed in the report is determined by the special Ratios Set file Bv default Peer Analvsis uses the Value txv Ratio Set Vou can edit or create a Ratio Set file using the Ratio Set Editor Peer Analvsis and Companv vs Industrv Analvsis use the same set of ratios When vou create edit the ratios set it can be used with both the Companv vs Industrv Analvsis and Peer Analvsis reports Doc To Help Standard Template Doc To Help Standard Template Historical Peer Analvsis Charts Integrated Company Analysis Ratio History AOL File Ticker View Chart Tools Help ej gt am S giel al 2 _Picedction Estimates _ Snapshot Co vsind PeerAnabsis 124 395 ops ops 1295 app app WI 1296 VF op ap 12187 3 opp app 1298 IF ops 89 99 lt lt 11 87 10 99 gt gt For Help press F1 When a Peer Analysis report is displayed you can view historical data for the selected item for the companies in your current peer group To display a historical chart for the specific ratio Select a ratio from the Peer Analysis Information Table by clicking the column title Click the Show History button located in the upper right corner of the Peer Analysis chart T
96. ulate the Equal Weighted Holding Period Return for the industry HPRi including dividends assuming a long position for an identical holding period as that used in the HPRs calculation for each recommendation Appendix e 65 66 e Appendix 3 Count a Win each time HPRs is greater the HPRi Wins are expressed as a percentage of the total number of recommendations Recommendations used in Calculating Win Zacks standardizes recommendations using a 1 to 5 scale where 1 Strong Buy 2 Buy 3 Hold 4 Sell 5 Strong Sell If an analyst issues separate ratings for the same stock over different investment periods Zacks uses the rating for the near term period When evaluating the performance of buy recommendations if a rating is downgraded from either a 1 Strong Buy or a 2 Buy to a 3 Hold the stock is sold and the performance period for the buy is terminated Zacks uses the same convention when evaluating sell recommendations if a rating is changed from a 4 Sell or 5 Strong Sell to a 3 Hold the observation period is closed Average Buy Return Calculations The average of all un annualized returns calculated for the holding periods of any and all of the analyst s buy recommendations during the period Sell ratings are ignored when calculating returns since most institutional money managers are restricted from selling short The Return is calculated as follows The Sum of the HPRs for Analyst Buy Recommendations
97. ve chart window will be copied to the Windows clipboard Open a WORD document or any presentation file Paste the ICA report into the document using the program s editing features Doc To Help Standard Template Doc To Help Standard Template Price Action Quick Start Guide Price Action operates with Chart Definitions Chart Definitions are pre defined settings that combine price charts with various overlavs Use Zacks Chart Definitions or create vour own Access Zacks Chart Definitions bv opening the Ghart menu then select Chart Settings or click the Price Action button on the ICA Components toolbar Select a chart definition View the description of the Chart Definition bv selecting the Description tab in Chart Options dialog box When opening ICA a default list of companies will be automaticallv loaded and a chart for the first ticker on the list will be displayed Estimates Quick Start Guide To displav an Estimates report select a ticker from the ticker drop menu located to the left of Get Report button or click the Estimates button on the ICA Components toolbar An Estimates report for the selected companv will be displaved Snapshot Quick Start Guide To displav a Snapshot report select a ticker from the ticker drop menu located to the left of Get Report button or click the Snapshot button on the ICA Components toolbar A Snapshot report for the selected companv will be displaved Companv vs Industrv Analvsis Quick
98. ws the stock price performance versus the S amp P MidCap 400 Index Performance Relative to S amp P 500 This chart shows the stock price performance versus the S amp P 500 Index Performance Relative to S amp P 600 This chart shows the stock price performance versus the S amp P SmallCap 600 Index Performance Relative to Wilshire 5000 This chart shows the stock price performance versus the Wilshire 5000 Index Performance Relative to NASDAQ Doc To Help Standard Template Zacks M Medium Industrv Groups o Jo Om SS GO Mac This chart shows the stock price performance versus the NASDAQ composite Zacks Sector and Industrv Designations The following is a list of Zacks X Expanded Industries Zacks Sectors and Zacks M Medium Industries designations Zacks X Expanded Sector Groups Indices Consumer Staples Consumer Discretionarv Retail Wholesale Medical Auto Tires Trucks Basic Materials Industrial Products Construction OD JO Om PS ob AC INDICES APPAREL BEVERAGES FOOD PUBLISHING SOAPS COSMETICS TOBACCO CONS PROD MISC STAPLES HOME FURNISHING APPLIANCE LEISURE SERVICE MEDIA PHOTO EQUIPMENT amp SUPPLIES OTHER CONSUMER DISCRETIONARY FOOD DRUG RETAIL W HOLESALE NONFOOD RETAIL WHOLESALE DRUGS MEDICAL CARE MEDICAL PRODUCTS AUTOS TIRES TRUCKS CHEMICALS amp FERTILIZER METALS NON FERROUS STEEL PAPER CONTAINERS amp GLASS INDUSTRIAL PRODUCTS SERVICES MACHINERY ELECTRICAL MACHIN
99. y type the company s ticker symbol in the Tickers drop down menu located to the left of the Get Report button then click Enter Working with Ticker Lists in ICA ICA Ticker Types There are three types of tickers used in ICA Company Tickers ticker symbols for stocks in Zacks companies universe ICA has a sample list that loads automatically when the application starts Aggregate Tickers ticker symbols for aggregate classes such as S amp P 500 Zacks Industry or Zacks Sector in Zacks aggregates universe Index Tickers ticker symbols for various indexes in the Zacks market index universe Company tickers can be used in all ICA reports whereas Aggregate and Index tickers are used in Price Action reports only Working with Companies Ticker Lists Ticker List x m Ticker List bo Browse Ticker Company Name BA ALCOA INC a ALD ALLIEDSIGNAL AXP AMER EXPRESS CO Remove BA BOEING CO E CITIGROUP INC Remove Al CAT CATERPILLAR INC CHY CHEVRON INC DD DU PONT El DE DIS DISNEY WALT EK EASTMAN KODAK GE GENL ELECTRIC GM GENL MOTORS GT GOODYEAR TIRE xl DK Cancel To display an ICA report select a ticker or set of tickers Ticker List The Ticker List is automatically sorted by ticker symbol When the Ticker List is selected a price chart displays the first ticker on the list ICA has a sample Ticker List mvportf txt automatically loaded when first starting the application T

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