Zacks vs Morningstar 2023: Best investment research platform?

Jeremy Biberdorf
By: Jeremy Biberdorf
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With so many platforms and services for investing out there, finding one that’s right for you can be overwhelming let alone very time-consuming.

With so many options out there, how do you know what’s best for you?

Our review of Zacks Vs Morningstar will help you answer that and more.

These two websites are among the biggest and most effective stock research platforms helping you gain a trading edge.

Let’s take a closer look below.

What is Zacks?

Zacks is a leading stock research platform that specializes in quantitative analysis. Focused on stock analysis, it offers services like the Zacks Rank List, Equity Research Reports, and Style Scores. With subscription tiers such as Zacks Premium and Zacks Ultimate, users can access features tailored for medium-term investors, growth stock investing, and those willing to take moderate risks.

What is Morningstar?

Morningstar is a renowned investment research platform known for its fundamental analysis approach. Catering to long-term investors, it provides a broad analysis of stocks, mutual funds, and ETFs.

Beyond stock evaluations, Morningstar is lauded for its stock advisor five-star rating system and its comprehensive assessment of investment opportunities. It has a long-standing history since its foundation in 1984, researching hundreds of thousands of investments worldwide.

Zacks Is Better For:Morningstar Is Better For:
Quantitative AnalysisFundamental Analysis
Stock AnalysisStocks, Mutual Funds, and ETFs
Low PriceProduct Bundles
Medium Term InvestorsLong Term Investors
Simplified Monthly PicksAdvanced Scoring System
Growth Stock InvestingMomentum Stock Investing
Moderate Risk TakersHigh Risk Takers

Let’s look at some comparisons:

Zacks Morningstar
Annual Subscription Fees Basic Service Zacks Premium $249/Year Morningstar Investor $249/Year
Securities Analyzed Stocks Stocks, Mutual Funds, ETFs
Investing Approach Quantitative Analysis Fundamental / Quantitative
Best Use Stock Traders Mutual Funds / ETF Investors
Current Promotion

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Save $50 on an annual membership with coupon code MM50
Modest Money Overall Rating
4.9 rating based on 5 ratings
4.3 rating based on 5 ratings

Zacks VS Morningstar: Determining Factors?

Before investing in a stock-picking service, let’s take a look at some factors that an investor should be aware of when comparing Zacks Vs Morningstar.

Factor 1: Price

Any investor should familiarize themselves with any costs involved when signing up for these types of platforms.

Consider how much you’ll spend before you start to take full advantage of any service before you even begin. Some have steeper learning curves than others.

Professional traders are likely to accept a slight price increase for a trading platform if that platform offers additional features than their competitors.

Zacks Is Preferable To Morningstar

  • Zacks provides more features with its $249 Zacks Premium subscription.
  • A free Zacks Premium 30-day trial is also available, whereas Morningstar only allows a 7-day trial.

Zacks: Price

Zacks offers three tiers of memberships: Zacks Premium, Investor Collection, and Zacks Ultimate.

  • Zacks Premium members can access several fantastic features, including the Zacks #1 Rank List, Industry Rank List, Premium Screens, Focus List, Style Scores, Equity Research Reports, and others for $249.
  • Zacks offers Investor Collection, which allows access to 8 example portfolios, for $495 per year.
  • Zacks Ultimate, which provides real-time individual stock trading advice, costs $2,995 annually.

With the 30-day free trial, you get access to Zacks Premium resources which should be enough time to see if it’s right for you.

Get started with Zacks Premium Now!

Morningstar: Price

According to Morningstar, investment ideas are one element of an investor’s overall financial future.

You can access investment selections, unbiased research reports, confidential grade information, fund scanners, and Morningstar’s portfolio tools after you purchase a Morningstar Premium membership.

But is Morningstar Premium worth it?

For $249 annually, absolutely it is! Morningstar also offers a free trial period of 7 days.

Start investing with Morningstar today!

Factor 2: Investment Strategy

Each individual stock advisor platform will lean towards a particular style of investing.

So it makes sense when it comes to picking a platform that’s right for you. You should go for one that suits your particular style of investing.

No brainer, right?

Well, often people just focus on price or past performance which can lead to failure.

You’ve heard of “do your own research before making any investment decisions” so why not do the same for the platform you are going to use?

Bottom line is, your investment strategy plays an important role in which platform you should decide on.

Morningstar Is Preferable To Zacks for long-term investing.

  • Morningstar is aimed at long-term investors, particularly those interested in fundamental research.
  • Compared to Zacks, Morningstar offers a broader analysis of mutual funds and Exchange Traded Funds.

Morningstar: Investment Strategy

When assessing potential long-term investments, many traders will use Morningstar. They’re well-known for their stock advisor five-star rating system.

After a quick check of the rating, you can then explore a stock further using Morningstar’s comments and other research tools.

Ratings for funds have a three-year track record ranging from one star (the lowest) to five stars (the highest).

Morningstar bases its star ratings on stocks by looking at risk-adjusted results.

Zacks: Investment Strategy

Zacks Investment Research stands out for its distinctive quantitative methodology that emphasizes updated earnings predictions as the key to its stock advisory platform.

They do this by what’s known as Zacks Rank. This combines the most recent revision data and categorizes companies into five classes.

These range from “Strong Buy” to “Strong Sell,”.

Read the full Zacks Investment Research Review here.

Factor 3: Performance

When choosing where to put your hard-earned money, you should consider past performance.

The track record for Zacks and Morningstar is shown below. A friendly reminder though, past performance doesn’t guarantee future results.

Learn More About Zacks

Zacks: Performance

At this time, solid buys with a Zacks #1 Rank has generated returns that average close to 25% annually since 1988.

That’s nearly more than double the average yearly profits of the S&P 500.

Morningstar: Performance

Morningstar has created a wide range of proper research, stock ratings, and services since its creation in 1984 by billionaire Joe Mansueto.

Morningstar researches more than 600,000 investments across 27 different countries.

Its investment divisions also manage around $239 billion in assets.

Learn More About Morningstar

Zacks vs. Morningstar: The Bottom Line

Both the Zacks and Morningstar analysis platforms provide reliable tools for analysis and exploration for traders.

Using either Zacks or Morningstar is like having your own personal financial advisor by your side.

If you have to pick one, and you value thorough, unbiased research, Morningstar is a fantastic choice.

You can read the full Morningstar review here.

Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He’s a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.