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Top 3 Stocks With Strong Earnings Acceleration to Buy
BILIBILIBILI(BILI) ZACKS·2024-11-27 21:06

Core Insights - Persistent earnings growth is crucial for company profitability and stock price appreciation, with studies indicating that successful stocks often experience earnings acceleration prior to stock price increases [1] - Earnings acceleration is defined as the incremental growth in a company's earnings per share (EPS), specifically when quarter-over-quarter growth rates increase over time [2] - Companies with increasing earnings growth percentages are fundamentally sound, while stagnant or declining growth can lead to price drops [4] Earnings Acceleration Screening - The screening parameters for identifying stocks with earnings acceleration include ensuring that the last two quarter-over-quarter EPS growth rates exceed previous periods' growth rates, and projected EPS growth rates for the upcoming quarter are expected to surpass prior periods [5][6][7] - Additional screening criteria include a current stock price of at least $5 and an average 20-day trading volume of 50,000 or more, indicating adequate liquidity [8] Highlighted Companies - Bilibili Inc. (BILI): An online entertainment platform in China, with an expected earnings growth rate of 104.3% for the current year and a Zacks Rank of 2 (Buy) [9] - BrightSphere Investment Group Inc. (BSIG): A diversified multi-boutique asset management company, expected earnings growth rate of 45.5% for the current year, holding a Zacks Rank of 1 (Strong Buy) [10] - Orchid Island Capital, Inc. (ORC): A specialty finance company investing in residential mortgage-backed securities, with an expected earnings growth rate of nearly 74% for the current year and a Zacks Rank of 2 (Buy) [11]