The Motley Fool vs Zacks 2024: Which service is better?

Choosing the best market research platform is essential for investors who like to play the market by investing in individual stocks. The right research platform can make the difference between consistently beating the market and severely lagging.

With so many options available, it can be challenging to determine which platform offers the most value and best aligns with your investment strategy. Two of the most popular platforms, The Motley Fool and Zacks, provide a wealth of tools and insights designed to help investors make informed decisions.

In this article, we’ll compare their features, strengths, and weaknesses to help you decide which is the best fit for your investment needs.

Pros and Cons of The Motley Fool

Pros

• Long-Term Focus: Emphasizes long-term, buy-and-hold investment strategies.
• Proven Track Record: The historical performance of Stock Advisor has significantly outperformed the S&P 500.
• Comprehensive Analysis: In-depth analysis and easy-to-understand recommendations.
• Educational Resources: Offers extensive educational materials for investors at all levels.
• Community Support: Active forums and community for discussion and support.
• Frequent Updates: Regular updates and new stock recommendations.
• Transparency: Clear and detailed explanations of stock picks and strategies.
• Affordable Pricing: Competitive subscription pricing with frequent discounts.

Cons

• S.-Centric: Primarily focused on U.S. stocks, with limited international coverage.
• No Direct Management: Does not offer portfolio management services.
• Subscription Required: Full access requires a paid subscription.
• Overwhelming for Beginners: The volume of information can be overwhelming for new investors.

Pros and Cons of Zacks

Pros

• Data-Driven Approach: Uses a proprietary quantitative model for stock recommendations.
• Comprehensive Tools: Offers a range of tools including stock screeners and earnings forecasts.
• Timely Updates: Daily updates on stock ratings and market analysis.
• Diverse Strategies: Caters to both short-term and long-term investment strategies.
• Historical Performance: The Zacks Rank system has shown to generate above-average returns.
• Detailed Reports: Provides in-depth reports and analysis for informed decision-making.
• Flexible Subscription Plans: Offers various subscription levels to suit different needs.
• Expert Opinions: Access to professional research and expert opinions.

Cons

• Complex for Beginners: The data-driven approach can be complex for new investors.
• Higher Cost: Premium services can be relatively expensive compared to other platforms.
• Short-Term Focus: Emphasis on short-term trading might not suit all investors.
• Limited Free Content: Most valuable features are behind a paywall.

Zacks VS The Motley Fool: Determining Factors?

The Motley Fool is a research firm. Zacks can refer to its research firm, Zacks Investment Research, or its subsidiaries, Zacks Trade and Zacks Investment Management, all of which were founded by economist Len Zacks.

Since we are reviewing investment research firms, when we use “Zacks” in this review, we will be talking about Zacks Investment Research and not the brokerage platforms Zacks Trade and Zacks Investment Management.

Like most investors, you probably don’t have all day to read and learn everything about the stock market, so choosing the best market research firm is essential. You need to be able to get impactful information that suits your investment preferences and style.

So, between The Motley Fool and Zacks Investment Research, which is more likely to suit your investment decisions and goals?

The Motley Fool Costs

The Motley Fool offers a range of subscription services catering to various types of investors. Here’s a breakdown of their costs and features:

Rule Your Retirement: $149 annually

• Ideal for investors focusing on retirement planning.
• Includes advice on retirement savings, income planning, and tax-efficient strategies.

Stock Advisor: $199 annually (discount available for the first year)

• Signature subscription with an impressive 20+ years track record.
• Average return of around 500%, or four times that of the S&P 500.
• Provides two monthly stock picks with detailed analysis.

Rule Breakers: $299 annually

• Focuses on slightly riskier stocks with the potential for significant gains.
• Historical performance has outpaced the S&P 500 by a factor of two.

Premium Service: $13,999 annually

• Grants access to all The Motley Fool’s analysis.
• Designed for investors who want comprehensive, in-depth research and recommendations.

This range of options showcases The Motley Fool’s ability to cater to both beginner and advanced investors, offering something for everyone.

Zacks Costs

Zacks Investment Research bundles its products into various premium memberships. Here’s a detailed look at their offerings:

Zacks Premium: $249 annually

• Includes Zacks’ #1 Rank, Equity Research Reports, Focus List portfolio of 50 longer-term stocks, and premium screens.
• Ideal for investors seeking comprehensive research and high-ranking stock picks.

Zacks Investor Collection: $495 annually

• Includes Stocks Under $10, ETF Investor, Income Investor, Value Investor, Zacks Confidential, Zacks Premium, and Zacks Top 10 Stocks.
• Suitable for investors looking for a diverse range of investment strategies and insights.

Zacks Ultimate: $2,995 annually

This comprehensive package includes Black Box Trader, Blockchain Innovators, Commodity Innovators, Counterstrike, ETF Investors, Headline Traders, Healthcare Innovators, Home Run Investor, Income Investor, Insider Trader, Large-Cap Trader, Marijuana Innovators, Options Trader, Short Sell List, Stocks Under $10, Surprise Trader, Value Investor, TAZR, Technology Innovators, Zacks Premium, Zacks Confidential, and Zacks Top 10 Stocks.

This subscription is best for experienced investors wanting extensive market research and a variety of trading strategies.

The Motley Fool Has Lower Cost Options

The Motley Fool’s Stock Advisor is cheaper and easier to digest than any of the products by Zacks, including Zacks Premium. At an investment of only $89 for the first year, this is one of the best research options on the market.

The Motley Fool Costs

The Motley Fool offers a range of subscription services catering to various types of investors. Here’s a breakdown of their costs and features:

Rule Your Retirement: $149 annually

• Ideal for investors focusing on retirement planning.
• Includes advice on retirement savings, income planning, and tax-efficient strategies.

Stock Advisor: $199 annually (discount available for the first year)

• Signature subscription with an impressive 20+ years track record.
• Average return of around 500%, or four times that of the S&P 500.
• Provides two monthly stock picks with detailed analysis.

Rule Breakers: $299 annually

• Focuses on slightly riskier stocks with the potential for significant gains.
• Historical performance has outpaced the S&P 500 by a factor of two.

Premium Service: $13,999 annually

• Grants access to all The Motley Fool’s analysis.
• Designed for investors who want comprehensive, in-depth research and recommendations.

This range of options showcases The Motley Fool’s ability to cater to both beginner and advanced investors, offering something for everyone.

Zacks Costs

Zacks Investment Research bundles its products into various premium memberships. Here’s a detailed look at their offerings:

Zacks Premium: $249 annually

• Includes Zacks’ #1 Rank, Equity Research Reports, Focus List portfolio of 50 longer-term stocks, and premium screens.
• Ideal for investors seeking comprehensive research and high-ranking stock picks.

Zacks Investor Collection: $495 annually

• Includes Stocks Under $10, ETF Investor, Income Investor, Value Investor, Zacks Confidential, Zacks Premium, and Zacks Top 10 Stocks.
• Suitable for investors looking for a diverse range of investment strategies and insights.

Zacks Ultimate: $2,995 annually

This comprehensive package includes Black Box Trader, Blockchain Innovators, Commodity Innovators, Counterstrike, ETF Investors, Headline Traders, Healthcare Innovators, Home Run Investor, Income Investor, Insider Trader, Large-Cap Trader, Marijuana Innovators, Options Trader, Short Sell List, Stocks Under $10, Surprise Trader, Value Investor, TAZR, Technology Innovators, Zacks Premium, Zacks Confidential, and Zacks Top 10 Stocks.

This subscription is best for experienced investors wanting extensive market research and a variety of trading strategies.

The Motley Fool Has Lower Cost Options

The Motley Fool’s Stock Advisor is cheaper and easier to digest than any of the products by Zacks, including Zacks Premium. At an investment of only $89 for the first year, this is one of the best research options on the market.

Factor 3: Upselling

There is no more significant turn-off when choosing an investment research services company than by signing up for one service only to be constantly spammed by emails attempting to upsell you to another. I hate being enticed into signing up for a new service.

The Motley Fool Upselling

The Motley Fool is one of the best stock research firms out there, but its approach to getting you to sign up for more of its products can be downright spammy. When you sign up for their premium service, you become inundated with emails promising the next best thing.

Fortunately, you can tweak your settings to reduce the upselling significantly. Once you subscribe to one of their services, go to “Email Settings” under “My Fool”, opt out of “Free Email Subscriptions”, and update your “Promotional Communications Preferences.”

It takes a few minutes to set up, but it’s worth it if you hate upselling emails. Of course, you might miss out on some discounted rates for other products.

Zacks Upselling

Zacks does a lot less upselling of its products than The Motley Fool, although they do, according to their website, “rent” out their direct mail list of 1.5 million subscribers to advertisers.

Zacks Emails You Less than The Motley Fool

From our experience at Modest Money and user feedback, it seems that Zacks Investment Research will bombard you with fewer upselling emails than The Motley Fool.

Factor 4: Performance

When considering investment research firms, you probably want to know their respective track records. After all, the best research firm for you comes down to performance.

For our performance analysis, we will compare The Motley Fool’s Stock Advisor with Zacks #1 Rank. The figures used in this analysis are from The Motley Fool and Zacks’s data. It has not been independently verified by Modest Money.

The Motley Fool Stock Advisor Performance

Since it began in 2002, The Motley Fool’s Stock Advisor picks have generated an average return of around 500% as of the publication date. This is over four times the rate of the S&P 500 in the same time frame.

With its style of recommending only two stocks a month, The Motley Fool has achieved this return through narrow, targeted fundamental analysis and research. Stock Advisor has a lot less static than other investment research services and a lot less tendency to drift away from their core proficiency of profitable stock picks.

This is how The Motley Fool has achieved its decades-long high-performance record.

Zacks #1 Rank Performance

Is Zacks worth it? Since 1988, Zacks #1 Rank strong buys have achieved an average annual return of nearly 26% as of the publication date. This is more than double the average annual returns of the S&P 500 and very respectable for short-term investment opportunities.

Modest Money Awards Better Performance to The Motley Fool over Zacks

Comparing overall returns to annual returns is apples to oranges, especially when we don’t know how long the stocks are being held. Still, Modest Money prefers the medium-term approach of The Motley Fool vs Zacks, so we will award the performance points to The Motley Fool.

While The Motley Fool has achieved four times the S&P return, it is important to note that Zacks has been able to steadily beat the S&P since 1988, almost twice as long as The Motley Fool’s successful track record.

Factor 5: Customer Service

When it comes to choosing between investment services like The Motley Fool and Zacks, assessing factors beyond mere financial performance becomes crucial. While the numbers and returns are undeniably important, there’s another dimension that savvy investors shouldn’t overlook: customer service.

Just as their investment strategies differ, so too do their approaches to supporting and engaging their clients. By exploring this facet, we can better understand what sets The Motley Fool and Zacks apart beyond the balance sheets and performance percentages.

The Motley Fool Customer Service

For subscribers seeking assistance, The Motley Fool offers accessible avenues of communication. Customer service representatives can be reached at 877-629-2589 within the confines of business hours, spanning Monday through Friday, from 9 a.m. to 5 p.m. EST.

An alternative option for subscribers lies in the availability of SMS stock alerts. Additionally, inquiries can be directed to the customer service team through the conveniently provided contact form on the company’s official website.

Zacks Customer Service

ZacksTrade ensures dynamic customer assistance across multiple channels, fostering ease of access and engagement. Human customer service representatives are available via phone, email, chat, fax, and social media platforms.

This support is operational on weekdays, Monday through Friday, from 9:00 a.m. to 6:00 Eastern Standard Time, except on recognized American holidays such as Christmas, the Fourth of July, and Martin Luther King Day.

ZacksTrade provides additional options for prompt interaction, including live chat and email correspondence. Notably, even a fax number is offered for those preferring such communication. The company’s customer support ambit extends to the realm of social media, with connectivity through platforms like Facebook and Twitter.

It’s pertinent to note that ZacksTrade’s US-based customer service is centralized at their downtown Chicago offices. While acknowledging the service’s presence, reviewers have indicated that it may be lacking in certain aspects. This perceived deficiency could stem from potential delays in response time, with users occasionally waiting for days to receive replies from ZacksTrade. Additionally, international users might encounter challenges in reaching ZacksTrade’s customer support, potentially contributing to lower satisfaction scores.

Who Does It Better?

Both platforms exhibit dedication to addressing user needs. ZacksTrade stands out with its comprehensive options and attentiveness, ensuring a well-rounded customer experience.

Meanwhile, The Motley Fool excels by delivering specialized guidance through more direct channels. Ultimately, the choice between the two is shaped by individual preferences and priorities, as each platform’s unique approach has its own merits.

Factor 6: Rating

In the realm of investment services, numbers tell only part of the story. Beyond the spreadsheets and financial figures, the experiences and satisfaction of customers hold a unique vantage point. As potential investors weigh their options between The Motley Fool and Zacks, it’s crucial to consider an often-overlooked factor: customer ratings.

By delving into the real-life experiences of those who have entrusted their investments to these platforms, we can uncover insights that go beyond the cold, complex data and provide a more holistic understanding of what The Motley Fool and Zacks genuinely offer.

The Motley Fool Ratings

Customer sentiment toward The Motley Fool is generally positive, although opinions are varied. Reviews highlight both praise and concerns. One notable grievance centers on the frequency of email marketing promoting additional products and services, potentially leading to an inundation of promotional content.

Another recurring issue revolves around the timing of investments. The company prominently emphasizes its stock recommendations as long-term holdings, typically spanning five years or more. Consequently, evaluating their short-term performance remains challenging.

Presently, The Motley Fool boasts a 3.6/5 star rating on Trustpilot, signifying a commendable level of satisfaction. This rating is derived from a substantial pool of over 7,000 reviews, providing a substantial basis for assessment.

On the Better Business Bureau (BBB), The Motley Fool secures a 3.82/5 rating based on feedback from 139 customers, correlating with a B rating. This platform, however, witnesses several monthly complaints, often related to promotional upgrade offers.

Zacks Ratings

Looking at customer ratings, it’s evident that ZacksTrade has garnered attention for its attentive approach to user engagement. Reviewers commend the various communication channels available, which include phone, email, chat, fax, and social media platforms. However, it’s important to note that there have been instances of delayed responses reported, potentially affecting the overall satisfaction of certain users.

Zacks Trade’s customer service efforts are well-reflected in its BBB rating of 3.82/5 based on 139 customer reviews, correlating to a B rating. While there are several monthly complaints, these often revolve around upgrade offers and occasional response time delays. Nonetheless, ZacksTrade’s proactive engagement through social media platforms like Facebook and Twitter demonstrates an effort to meet customers where they are.

The Winner Is…

When choosing between The Motley Fool and Zacks, investors should consider their investment style, risk tolerance, and financial goals. The Motley Fool’s long-term, growth-focused strategy is ideal for moderate-risk investors, while Zacks’ quantitative analysis caters to those seeking short-term, high-risk opportunities.

In terms of cost, The Motley Fool offers more affordable options for individual investors. For comprehensive and flexible investment analysis, Zacks provides valuable insights, especially for short-term traders. Click here to get started with The Motley Fool for long-term investment strategies or explore Zacks for data-driven, short-term trading analysis.

Who Is It Good For: The Motley Fool vs. Zacks

The decision between The Motley Fool and Zacks goes beyond comparing financial gains and market predictions. It’s about finding the right fit for your individual investment goals, preferences, and risk tolerance.

By examining the strengths, styles, and offerings of The Motley Fool and Zacks, we aim to help you navigate this choice with a deeper understanding of which service aligns best with your unique investment journey. After all, the right path to success is often as personalized as your financial aspirations.

The Motley Fool

The Motley Fool is a prominent player in the investment realm, offering a range of services and recommendations tailored to different types of investors. Here, we outline who could benefit the most from considering The Motley Fool’s offerings.

So if you’re seeking a long-term strategy, personalized insights, or a focus on education, this list can help you gauge whether The Motley Fool is the right fit for your investment journey.

• Long-Term Investors: The Motley Fool’s stock recommendations are geared towards a long-term buy-and-hold strategy, typically spanning five years or more. The Motley Fool’s approach aligns well if you want to build a diversified portfolio with a patient investment horizon.
• Investors Seeking Personalized Recommendations: The Motley Fool’s customer service may be particularly appealing if you value a more personalized touch. Their email contact form and SMS stock alerts offer direct communication channels for tailored guidance.
• Those Seeking Established Performance: The Motley Fool’s track record since 2002 boasts an average return of around 500%, outperforming the S&P 500 fourfold. If historical performance and a decades-long high-performance record attract you, The Motley Fool’s offerings might align with your goals.

Zacks

ZacksTrade is a prominent contender in the investment landscape, offering a comprehensive range of services tailored to a diverse set of traders and investors. This section outlines who might find ZacksTrade’s offerings particularly well-suited to their needs.

Whether you’re an active trader seeking quick responses, an international market enthusiast, or someone valuing extensive communication options, this list will help you assess whether ZacksTrade aligns with your investment aspirations.

• Active Traders and Investors: ZacksTrade’s live customer support through various channels, including phone, email, chat, and social media, caters to those who frequently engage in trading activities and need quick responses to their inquiries.
• Those Valuing Extensive Communication Channels: ZacksTrade’s availability through phone, email, chat, fax, and social media platforms ensures that users have a variety of ways to interact and seek assistance, making it suitable for those who prefer diverse communication options.
• Traders Focused on International Markets: ZacksTrade’s Chicago-based US customer service may provide an advantage for those active in international markets. However, some users outside the United States have encountered difficulties reaching customer support.

The Motley Fool vs. Zacks: The Bottom Line

So, is Zacks or The Motley Fool the way to go? Modest Money does love well-diversified portfolio investing based on computer algorithms, but we are not fans of quantitative model investing for individual holdings. These are almost always short-term investments, which exposes them to many systematic and idiosyncratic risks. In other words, it overexposes your wealth to unpredictable factors like market crashes or one bad earnings report.

And we don’t hate individual stock-picking either, especially not when it is done in the same responsible manner as The Motley Fool advocates, holding more than 25 stocks at any given period and each stock over a horizon of at least five years.

If you can afford one investment research company, go with The Motley Fool – click here to sign up.

The Motley Fool

With The Motley Fool, you expose your portfolio to some risk, sure, but if you follow their recommended diversification rules, you have a much lower probability of incurring losses.

Within The Motley Fool portfolio, the subscription investors are most likely to find beneficial is Stock Advisor. And that’s also the one you can subscribe to here for only $89 for the first year, a savings of 55%.

55%* discount based on the $199/year list price. Limited-time promotional price for new members only. Membership will automatically renew at the current list price.

Ensure you follow The Motley Fool’s guidance to hold 25 or more stocks, each for at least five years, to maximize your risk/reward ratio.

Learn More About The Motley Fool

Zacks

On the other hand, if you thirst for research on mutual funds and ETFs as much as on stocks, Zacks Investment Research might be the research firm for you.

They are more expensive, and their quantitative-driven picks might be difficult to understand, but they have doubled the market returns over the past 35 years.

If this sounds good to you, you can subscribe here to one of the products at Zacks Investment Research, starting at $249 per year.

Learn More About Zacks

Who are the founders of The Motley Fool?

The Motley Fool was founded by brothers David and Tom Gardner in 1993.

Where is The Motley Fool based?

The Motley Fool is headquartered in Alexandria, Virginia, USA.

What payment methods does The Motley Fool accept?

The Motley Fool accepts major credit cards including Visa, MasterCard, American Express, and Discover for subscription payments.

What is The Motley Fool’s refund policy?

The Motley Fool offers a 30-day money-back guarantee for their subscription services. If you are not satisfied, you can request a full refund within the first 30 days.

How has The Motley Fool performed historically?

Historically, The Motley Fool’s Stock Advisor has significantly outperformed the S&P 500 since its inception. They regularly update performance metrics on their website.

Does The Motley Fool offer investment tools besides stock recommendations?

Yes, The Motley Fool offers various investment tools including portfolio trackers, educational resources, and community forums.

Who is the founder of Zacks?

Zacks Investment Research was founded by Leonard Zacks in 1978.

Where is Zacks based?

Zacks Investment Research is headquartered in Chicago, Illinois, USA.

What payment methods does Zacks accept?

Zacks accepts major credit cards such as Visa, MasterCard, American Express, and Discover for their subscription services.

What is Zacks’ refund policy?

Zacks generally offers a 30-day money-back guarantee on their subscription services. Specific terms and conditions may apply depending on the subscription level.

How does Zacks’ historical performance compare to the market?

Zacks is known for its quantitative model that often identifies stocks that outperform the market. Their Zacks Rank system has been shown to generate above-average returns over time.

Does Zacks offer investment tools besides stock recommendations?

Yes, Zacks provides a range of investment tools including stock screeners, earnings forecasts, portfolio trackers, and educational resources.

Is Zacks suitable for long-term investors?

While Zacks is particularly known for its short-term trading recommendations, it also offers long-term investment insights and tools suitable for various types of investors.

How frequently does Zacks update their stock ratings and analysis?

Zacks updates their stock ratings and analysis daily, providing timely insights based on the latest market data and trends.

Can I access Zacks’ services internationally?

Yes, international investors can subscribe to Zacks’ services. However, their primary focus remains on U.S. stocks and markets.