QuantumScape & 2 More Stocks Show Strong Earnings Acceleration

Core Insights - Persistent earnings growth is prioritized by corporate officials and analysts as it reflects a company's profitability, but earnings acceleration has a more significant impact on driving stock prices higher [1][8] - Earnings acceleration is defined as the incremental growth in a company's earnings per share (EPS), indicating an increase in quarter-over-quarter earnings growth rates [2][3] - Companies such as QuantumScape Corporation, Delek Logistics Partners, LP, and RingCentral, Inc. are demonstrating impressive earnings acceleration, making them attractive investment opportunities [1][8] Earnings Acceleration - Earnings acceleration helps identify stocks that have not yet attracted investor attention, which can lead to a rally in share prices once recognized [3][4] - An increasing percentage of earnings growth indicates a fundamentally sound company, while a sideways or decelerating growth percentage may signal consolidation or a slowdown [4] Screening Parameters - The screening process involves identifying stocks where the last two quarter-over-quarter EPS growth rates exceed previous periods, with projected growth rates for the upcoming quarter expected to surpass prior periods [5][6] - Additional screening criteria include a current price of at least $5 and an average 20-day trading volume of 50,000 or more, ensuring adequate liquidity [7] Top Picks - QuantumScape focuses on developing solid-state lithium-metal batteries for electric vehicles, with an expected earnings growth rate of 19.2% for the current year and a Zacks Rank of 2 (Buy) [9] - Delek Logistics provides pipeline and transportation services for crude oil and natural gas, with an expected earnings growth rate of 31.4% and a Zacks Rank of 3 (Hold) [10] - RingCentral offers cloud-based business communication solutions, with an expected earnings growth rate of 14.9% and a Zacks Rank of 3 [11]