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3 Best Earnings Acceleration Stocks to Buy for 2026

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Key Takeaways

  • Screening for accelerating EPS growth narrowed 7,735 stocks to 11, with SLAB, PAX and FN leading the list.
  • Earnings acceleration tracks rising QoQ EPS growth, flagging stocks early before investors reprice them.
  • Silicon Laboratories, Patria Investments, Fabrinet indicate 2026 earnings growth of 197.8%, 22.8% and 16.1%.

In 2026, savvy investors will likely focus on companies that deliver consistent earnings growth, signaling profitability. However, earnings acceleration has an even greater effect on driving stock prices higher. Research indicates that top-performing stocks typically experience earnings acceleration before their share prices increase. 

To that end, Silicon Laboratories Inc. (SLAB - Free Report) , Patria Investments Limited (PAX - Free Report) and Fabrinet (FN - Free Report) are showing strong earnings acceleration for the new year.   

Earnings Acceleration Explained

Earnings acceleration is the incremental growth in a company’s earnings per share (EPS). In other words, if a company’s quarter-over-quarter earnings growth rate increases within a stipulated time frame, it can be called earnings acceleration.

In the case of earnings growth, you pay for something that is already reflected in the stock price. However, earnings acceleration helps spot stocks that haven’t yet caught the attention of investors and, once secured, will invariably lead to a rally in the share price. This is because earnings acceleration considers both the direction and magnitude of growth rates.

An increasing percentage of earnings growth means that the company is fundamentally sound and has been on the right track for a considerable period. Meanwhile, a sideways percentage of earnings growth indicates a period of consolidation or slowdown, while a decelerating percentage of earnings growth may drag prices down.

Screening Parameters Using Research Wizard:

Look at stocks for which the last two quarter-over-quarter percentage earnings per share (EPS) growth rates exceed the previous periods’ growth rates. The projected EPS growth rates for the upcoming quarter are expected to exceed those of prior periods.

EPS % Projected Growth (Q1)/(Q0) greater than EPS % Growth (Q0)/(Q-1): The projected growth rate for the current quarter (Q1) over the completed quarter (Q0) has to be greater than the growth rate from the completed quarter (Q0) over one quarter ago (Q-1). 

EPS % Growth (Q0)/(Q-1) greater than EPS % Growth (Q-1)/(Q-2): The growth rate for the completed quarter (Q0) over one quarter ago (Q-1) has to be greater than the growth rate from one quarter ago (Q-1) over two quarters ago (Q-2).

EPS % Growth (Q-1)/(Q-2) greater than EPS % Growth (Q-2)/(Q-3): The growth rate from one quarter ago (Q-1) over two quarters ago (Q-2) has to be greater than the growth rate from two quarters ago (Q-2) over three quarters ago (Q-3).

In addition to this, we have added the following parameters:

Current Price greater than or equal to $5: This screens out low-priced stocks.

Average 20-day volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.

The above criteria narrowed the universe of around 7,735 stocks to only 11. Here are the top three stocks:

Silicon Laboratories

Silicon Laboratories is a fabless semiconductor company that delivers analog-intensive mixed-signal solutions worldwide. Silicon Laboratories has a Zacks Rank #2 (Buy). SLAB’s expected earnings growth rate for the next year is 197.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Patria Investments

Patria Investments is a private market investment firm focused on private equity, secondary and venture capital investments. Patria Investments has a Zacks Rank #2. PAX’s expected earnings growth rate for the next year is 22.8%.

Fabrinet

Fabrinet offers optical packaging and precision manufacturing services across North America, the Asia-Pacific region and Europe. Fabrinet has a Zacks Rank #2. FN’s expected earnings growth rate for the next year is 16.1%.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.

 


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Silicon Laboratories, Inc. (SLAB) - free report >>

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Patria Investments Limited (PAX) - free report >>

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