3 Stocks to Buy for Earnings Acceleration in May: LRCX, U, GPOR

Core Insights - The article emphasizes the importance of earnings acceleration in driving stock prices higher, indicating that stocks often experience an increase in earnings before their prices rise [1][3]. Earnings Acceleration Definition - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), specifically when the quarter-over-quarter earnings growth rate increases over time [2]. Importance of Earnings Acceleration - Unlike earnings growth, which may already be reflected in stock prices, earnings acceleration can identify stocks that have not yet attracted investor attention, leading to potential price rallies [3]. Earnings Growth Trends - An increasing percentage of earnings growth suggests a fundamentally sound company, while a stable or decreasing percentage may indicate consolidation or a slowdown, potentially dragging prices down [4]. Screening Parameters - The article outlines specific screening parameters to identify stocks with earnings acceleration, including: - Last two quarter-over-quarter EPS growth rates exceeding previous periods [5]. - Projected EPS growth rates for the upcoming quarter expected to exceed prior periods [6][7]. Top Stocks Identified - The screening process narrowed down to four stocks, with three highlighted: - Lam Research Corporation (LRCX): Expected earnings growth rate of 32.8% for the current year, Zacks Rank 2 (Buy) [8]. - Unity Software Inc. (U): Anticipated earnings growth rate of 34.5% for the current year, Zacks Rank 1 (Strong Buy) [10]. - Gulfport Energy Corporation (GPOR): Expected earnings growth rate of 85.3% for the current year, Zacks Rank 1 (Strong Buy) [11].