For Immediate Release
Chicago, IL – Jan 18, 2018 - Stocks in this week’s article include: Dollar Tree, Inc. (DLTR - Free Report) , Syndax Pharmaceuticals, Inc. (SNDX - Free Report) , Pinnacle Financial Partners, Inc. (PNFP - Free Report) and Union Bankshares Corporation (UBSH - Free Report) .
Screen of the Week of Zacks Investment Research:
4 of the Best Stocks to Buy on Earnings Acceleration
Since we are in the thick of the earnings season, investors should look for stocks that are ready to make a big move. Upbeat earnings results are more often than not followed by an uptick in the share price. Take a company’s revenues over a given period of time, subtract the cost of production and you will have its earnings!
But earnings acceleration works even better in boosting the stock price. Studies have shown that majority of successful stocks see acceleration in earnings before a positive stock price movement.
So, what is earnings acceleration? It is the incremental growth in a company’s earnings per share (EPS). In other words, if the rate of a company’s quarter-over-quarter earnings growth increases within a stipulated frame of time, it can be called earnings acceleration.
In case of earnings growth, you pay for something that is already reflected in the stock price. But, earnings acceleration helps spot stocks that haven’t caught the attention of investors yet, which once secured will invariably lead to a rally in the share price. This is because earnings acceleration considers both direction and magnitude of growth rates.
Increasing percentage of earnings growth means that the company is fundamentally sound and has been on the right track for a considerable period of time. On the other hand, a sideways percentage of earnings growth indicates a period of consolidation or slowdown, while a decelerating percentage of earnings growth may at times drag prices down.
Hence, earnings acceleration should be viewed as a key metric for share price outperformance.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/289137/4-of-the-best-stocks-to-buy-on-earnings-acceleration
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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.
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