Cardinal Health(CAH) ZACKS·2025-02-26 21:05Core Insights - Consistent earnings growth signals a company's profitability, but earnings acceleration is more effective in boosting stock prices [1] - Successful stocks typically experience earnings acceleration prior to stock price increases [1] Earnings Acceleration Definition - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), specifically when quarter-over-quarter earnings growth rates increase over time [2] Importance of Earnings Acceleration - Unlike earnings growth, which may already be reflected in stock prices, earnings acceleration helps identify stocks that have not yet attracted investor attention, leading to potential price rallies [3] - An increasing percentage of earnings growth indicates a fundamentally sound company, while a sideways or decelerating growth percentage may signal consolidation or decline [4] Screening Parameters - Stocks are screened based on the last two quarter-over-quarter EPS growth rates exceeding previous periods' growth rates, with projected EPS growth rates for the upcoming quarter expected to exceed prior periods [5][6] - Additional criteria include a current price of at least $5 and an average 20-day trading volume of at least 50,000 to ensure adequate liquidity [6] Top Stocks Identified - Prairie Operating Co. (PROP) is an independent energy company with a Zacks Rank 1 (Strong Buy) and an expected earnings growth rate of 81.2% for the current year [7] - Intuit Inc. (INTU) offers financial management products and has a Zacks Rank 3 (Hold) with an expected earnings growth rate of 13.8% [9] - Cardinal Health, Inc. (CAH) is a global healthcare services company with a Zacks Rank 2 (Buy) and an expected earnings growth rate of 5.4% [10]