Core Insights - Analysts are advised to focus on companies with earnings acceleration as it significantly influences stock prices, often leading to a rally before the stock value increases [1][4] Earnings Acceleration - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), indicating an increase in the quarter-over-quarter earnings growth rate [3] - Companies with earnings acceleration are likely to be undervalued, presenting potential investment opportunities as their stock prices may rise once investors take notice [4] Screening Parameters - The screening criteria for identifying stocks with earnings acceleration include: - Last two quarter-over-quarter EPS growth rates must exceed previous periods' growth rates [6] - Projected EPS growth rates for the upcoming quarter should be higher than those of prior periods [6] - Current stock price must be greater than or equal to $5 to filter out low-priced stocks [6] - Average 20-day trading volume should be greater than or equal to 50,000 to ensure adequate liquidity [7] Highlighted Companies - QuantumScape Corporation (QS): Expected earnings growth rate of 16% for the next year, focusing on solid-state lithium-metal batteries for electric vehicles [8][9] - Adobe Inc. (ADBE): Expected earnings growth rate of 12.6% for the next year, known for its digital media tools [10] - Silicon Laboratories Inc. (SLAB): Exceptional expected earnings growth rate of 197.8% for the next year, providing analog-intensive mixed-signal solutions [8][11]
QuantumScape and 2 Stocks Set for Earnings Acceleration in 2026