For Immediate Release
Chicago, IL – January 21, 2020 – Stocks in this week’s article are The Buckle, Inc. , The TJX Companies, Inc. (TJX - Free Report) , Digi International Inc. (DGII - Free Report) and Pure Storage, Inc. (PSTG - Free Report) .
Buy These 4 Stocks for Solid Earnings Acceleration
Earnings growth interests almost everyone, from the top brass to research analysts. After all, earnings are a measure of the money a company is generating. Notably, earnings are essentially revenues that the company generates after deducting the cost of production over a given period of time.
Nonetheless, earnings acceleration works even better when it comes to boosting the stock price. Studies have shown that a majority of stocks had seen acceleration in earnings before a rally in stock price.
What is Earnings Acceleration?
Primarily, earnings acceleration is the incremental growth in earnings of a company. 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 referred to as 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. Meanwhile, 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.
Therefore, earnings acceleration should be viewed as a key metric for share price outperformance.
For the rest of this Screen of the Week article please visit Zacks.com at:https://www.zacks.com/stock/news/726242/buy-these-4-stocks-for-solid-earnings-acceleration
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