For Immediate Release
Chicago, IL - July 27, 2018 - Stocks in this week's article include: Raytheon Company RTN , California Resources Corp. CRC , Plains All American Pipeline, L.P. PAA and Tristate Capital Holdings, Inc. TSC .
Screen of the Week of Zacks Investment Research:
4 Top Stocks to Buy for Explosive Earnings Acceleration
Constant earnings growth captivates almost everyone, right from the top brass to research analysts. 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. Meanwhile, 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.
Hence, earnings acceleration should be viewed as a key metric for share price outperformance.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/313476/4-top-stocks-to-buy-for-explosive-earnings-acceleration
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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Strong Stocks that Should Be in the News
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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 report Plains All American Pipeline, L.P. (PAA): Free Stock Analysis Report TriState Capital Holdings, Inc. (TSC): Free Stock Analysis Report Raytheon Company (RTN): Free Stock Analysis Report California Resources Corporation (CRC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research