Top executives and analysts are drawn to consistent earnings growth as it signals a company’s profitability, but earnings acceleration is even more effective at boosting the stock price.
Earnings acceleration is the incremental growth in a company’s earnings per share (EPS). In other words, if a company’s quarter-over-quarter earnings growth rate increases within a stipulated time frame, it can be called earnings acceleration.
Studies have shown that most successful stocks have seen earnings acceleration before an uptick in the stock price. To that end, the following three companies are exhibiting strong earnings acceleration.
This post originally appeared at Zacks.