Motley Fool vs Zacks - Which One Is Better for Investors?

Motley Fool vs Zacks - Which One Is Better for Investors?
Do you remember the first time you decided to invest? I do, and it wasn't pretty. Defining my goals and investment strategy — how much money to commit, what to invest in (mutual funds to keep things safe?) and choosing a broker — all felt like a lot to a rookie investor like me just exploring the wider personal finance space, and the stock market specifically. But times have changed for the better since. Many services exist now that make stock recommendations, help you define your investment style, and provide stock research and investment advice.
Two such premium-service providers are Motley Fool and Zacks.

About each brand

Motley Fool

Motley Fool markets its products to long-term investors. Founded by brothers Tom and David Gardner in 1993, Motley Fool traces its roots to making new stock picks, but the service has since branched out to recommend residential and commercial properties and ETFs. The Motley Fool Stock Advisor has beaten the S&P 500.

Zacks

As the name suggests, Zacks Investment Research is a stock research company that focuses on analysis and recommendations. It was founded by Len Zacks in 1978. Catering to experienced investors and beginners alike, Zacks provides research reports, charts, and watchlists to help you make informed investment decisions. Its Zacks Ranks service assigns stock ratings on a scale of one to five based on predetermined criteria, while the Zacks Trade platform is a stock trading website.
The Motley Fool is offering its top stock-picking service at 50% off for new members.*
*$89 is an introductory price for new members only. 50% discount based on current list price of Stock Advisor of $199/year. Membership will renew annually at the then-current list price.

Features

Motley Fool key features

Stock Advisor

When you subscribe to Stock Advisor, you get access to real-time buy and sell recommendations, podcasts and news, and a list of best buys. Stock picking made Motley Fool a household name in the personal finance sector, but each service recommends different types of stocks. As for Stock Advisor, it picks large-cap stocks to generate outsized gains. The investment service has beaten the S&P 500 four-to-one in the last 19 years.

Zacks key features

Stock screener

An investment research platform wouldn't be complete without a screener to help you drill down into the specifics. You either choose one of the predefined screens or make your own using metrics like Zacks Rank, price changes, and dividends. A vast majority of these screening tools are free, but some are available only to premium subscribers.

Zacks Ranks

From Strong Buy to Strong Sell, Zacks has a ranking system for each company that considers the stock's earnings potential. The company claims that Zacks Rank No. 1 has beaten the S&P 500 in 26 of the past 31 years. To drive its point home, it provides some data, too. Since 1988, a $10,000 investment would have turned to $21 million now using its rankings, compared to the S&P 500's $435,939.

All the data

When researching a stock, you need reliable data to ensure it all adds up. And there's no shortage of that over at Zacks. Research reports, earnings revisions, and EPS are all at your disposal if you use these metrics in your fundamental analysis.

Summary of Motley Fool and Zacks

Service
Cost
Best for
Motley Fool
$199 to $2,999 per year
Beginners and experienced investors
Zacks
$249 to $2,995 per year
Beginners and experienced investors

Costs

Motley Fool

Costing $99 each for the first year and $199 at renewal, Stock Advisor also offers a money-back guarantee that's good for 30 days if you're a new member.
The Motley Fool is offering its top stock-picking service at 50% off for new members.*
*$89 is an introductory price for new members only. 50% discount based on current list price of Stock Advisor of $199/year. Membership will renew annually at the then-current list price.

Zacks

Zacks has three paid tiers: Zacks Premium is $249 per year, Zacks Investor Collection costs $495 per year, and Zacks Ultimate is the highest-paid tier at $2,995 annually.

Pros and cons

Motley Fool pros and cons

Pros
  • Investment picks to suit your style, whether it's stocks or real estate.
  • Services that beat the S&P 500 consistently are also the most affordable.
  • Individuals with long-term investment horizon will see the highest gains.
Cons
  • Not ideal for investors thinking short term.
  • You may have to to pony up a large amount of cash if you'd like to buy all picks.
  • Motley Fool sends a lot of marketing emails.

Zacks pros and cons

Pros
  • Reliable data to get you started.
  • Suitable for people new to the investing world.
  • Zacks Ranks makes it easy to identify worthy investments.
Cons
  • The ultimate tier is too expensive.
  • Website may feel outdated to some.
  • Some reviews have claimed that canceling your subscription isn't easy.

Motley Fool vs. Zacks FAQs

Is Stock Advisor legit?
Every investment carries some degree of risk; there aren't risk-free investments. But Stock Advisor has a long-term track record of beating the markets.
Do I get a refund if I subscribe to a Motley Fool service?
Not all services offer a money-back guarantee, but Stock Advisor, Rule Breakers and Everlasting Stocks do.
Can I try Zacks for free?
Zacks has a free basic plan that gives you access to articles, a portfolio tracker and basic investment research tools. If you subscribe to Zacks Premium or Zacks Ultimate, you get a 30-day trial.
What is Zacks Trade?
Zacks Trade is trading platform. It is a standalone product by Zacks that isn't a part of any of its basic or paid plans.

The bottom line

Motley Fool and Zacks essentially brought Wall Street-pedigree stock advice to the masses. Regardless of your investing style, they will have something for everyone. Stock screeners, stock simulators, analyst ratings, and a treasure trove of data are just some things waiting for you after you swipe your card with these companies.

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