ZACKS·2025-10-09 20:01Core Insights - Wall Street analysts are shifting focus from steady earnings growth to earnings acceleration due to October's stock market volatility, as earnings acceleration is a key driver of stock prices [1][9] - Companies like NIO Inc., Roku, Inc., and Groupon, Inc. are demonstrating significant earnings acceleration, indicating potential for stock price rallies [2][9] Earnings Acceleration - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), characterized by an increase in quarter-over-quarter earnings growth rates [3] - This concept helps identify stocks that have not yet attracted investor attention, which can lead to a subsequent rally in share prices [4] Earnings Growth Indicators - A rising percentage of earnings growth suggests a fundamentally sound company, while stagnant or declining growth rates may indicate consolidation or potential price declines [5] - Analysts recommend looking for stocks where the last two quarter-over-quarter EPS growth rates exceed previous periods, with projected growth rates for the upcoming quarter also expected to surpass prior periods [6][9] Stock Screening Criteria - Specific criteria for identifying earnings accelerators include: - Current quarter EPS growth rate must exceed the previous quarter's growth rate [7] - Completed quarter's growth rate must exceed the growth rate from two quarters ago [7] - Current stock price should be greater than or equal to $5 to filter out low-priced stocks [7] - Average 20-day trading volume should be at least 50,000 to ensure adequate liquidity [8] Featured Companies - NIO Inc.: Expected earnings growth rate for the current year is 34.4%, focusing on smart electric vehicles [10] - Roku, Inc.: Expected earnings growth rate for the current year is 113.5%, operating a TV streaming platform [11] - Groupon, Inc.: Expected earnings growth rate for the current year is nearly 153%, connecting consumers to merchants through discounted offerings [12]