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ETR made the final cut as earnings acceleration narrowed thousands of stocks down to just 11 candidates.
In February, astute investors are likely to prioritize companies that deliver consistent earnings growth as a sign of profitability. Even more impactful, though, is earnings acceleration, which acts as a stronger catalyst for driving stock prices higher. Research shows that the best-performing stocks often demonstrate earnings acceleration before their share prices move higher.
To that end, Adobe Inc. (ADBE - Free Report) , The Goldman Sachs Group, Inc. (GS - Free Report) , and Entergy Corporation (ETR - Free Report) are showing strong earnings acceleration this month.
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 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:
Goldman Sachs is a financial institution that offers services to corporations, governments and individuals across major regions worldwide. GS’ expected earnings growth rate for the current year is 10.3%. Goldman Sachs currently has a Zacks Rank #2 (Buy).
Entergy
Entergy and its subsidiaries generate and distribute electricity to retail customers across the United States. Zacks Rank #3 ETR’s expected earnings growth rate for the current year is 7.1%.
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3 Best Earnings Acceleration Stocks to Watch for February 2026
Key Takeaways
In February, astute investors are likely to prioritize companies that deliver consistent earnings growth as a sign of profitability. Even more impactful, though, is earnings acceleration, which acts as a stronger catalyst for driving stock prices higher. Research shows that the best-performing stocks often demonstrate earnings acceleration before their share prices move higher.
To that end, Adobe Inc. (ADBE - Free Report) , The Goldman Sachs Group, Inc. (GS - Free Report) , and Entergy Corporation (ETR - Free Report) are showing strong earnings acceleration this month.
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 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:
Adobe
Adobe is a technology company with operations worldwide. ADBE’s expected earnings growth rate for the current year is 12.1%. Currently, Adobe has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Goldman Sachs
Goldman Sachs is a financial institution that offers services to corporations, governments and individuals across major regions worldwide. GS’ expected earnings growth rate for the current year is 10.3%. Goldman Sachs currently has a Zacks Rank #2 (Buy).
Entergy
Entergy and its subsidiaries generate and distribute electricity to retail customers across the United States. Zacks Rank #3 ETR’s expected earnings growth rate for the current year is 7.1%.