For Immediate Release
Chicago, IL - June 29, 2018 - Stocks in this week's article Insight Enterprises, Inc.NSIT , PetMed Express, Inc.PETS , American Axle & Manufacturing Holdings, Inc.AXL , Oil States International, Inc.OIS and Cannae Holdings, Inc.CNNE .
5 Stocks to Snap Up on Earnings Acceleration
Right from the top brass to research analysts, earnings growth captivates all. This is because earnings are a measure of the money a company is making. Notably, earnings are essentially revenues that the company generates after deducting the cost of production over a given period of time.
Earnings acceleration, however, works even better when it comes to lifting the stock price. Studies have shown that a majority of successful stocks had seen acceleration in earnings before an uptick in the stock price.
Basically, earnings acceleration is the incremental growth in earnings of a company. In other words, if the rate of a company's quarter-over-quarter earnings growth increases within a stipulated frame of time, it can be referred to as earnings acceleration.
In case of earnings growth, you pay for something that is already reflected in the stock price. But, earnings acceleration helps spot stocks that haven't caught the attention of investors yet, which once secured will invariably lead to a rally in the share price. This is because earnings acceleration considers both direction and magnitude of growth rates.
Increasing percentage of earnings growth means that the company is fundamentally sound and has been on the right track for a considerable period of time. On the other hand, a sideways percentage of earnings growth indicates a period of consolidation or slowdown, while a decelerating percentage of earnings growth may at times drag prices down.
This is the reason why earnings acceleration should be viewed as a key metric for share price outperformance.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/309636/5-top-stocks-to-snap-up-on-solid-earnings-acceleration
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportPetMed Express, Inc. (PETS): Free Stock Analysis ReportAmerican Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis ReportOil States International, Inc. (OIS): Free Stock Analysis ReportInsight Enterprises, Inc. (NSIT): Free Stock Analysis ReportFidelity National Financial, Inc. (CNNE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research