QuantumScape Leads 3 Stocks to Buy for Fast Earnings Acceleration

The top brass of a company and analysts value steady earnings growth as a sign of a company’s profitability. But an acceleration in earnings tends to have an even stronger impact on boosting stock prices. Research shows that leading stocks typically experience an acceleration in earnings before their share prices move higher.At this moment, QuantumScape Corporation QS, Silicon Laboratories Inc. SLAB and Affiliated Managers Group, Inc. AMG are showing strong earnings acceleration.What Is Earnings Acceleration?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.In the case of earnings growth, you pay for something that is already reflected in the stock price. However, earnings acceleration helps spot stocks that haven’t yet caught the attention of investors and, once secured, will invariably lead to a rally in the share price. This is because earnings acceleration considers both the direction and magnitude of growth rates.An increasing percentage of earnings growth means that the company is fundamentally sound and has been on the right track for a considerable period. Meanwhile, a sideways percentage of earnings growth indicates a period of consolidation or slowdown, while a decelerating percentage of earnings growth may drag prices down.Screening Parameters Using Research Wizard:Look at stocks for which the last two quarter-over-quarter percentage earnings per share (EPS) growth rates exceed the previous periods’ growth rates. The projected EPS growth rates for the upcoming quarter are expected to exceed those of prior periods.EPS % Projected Growth (Q1)/(Q0) greater than EPS % Growth (Q0)/(Q-1): The projected growth rate for the current quarter (Q1) over the completed quarter (Q0) has to be greater than the growth rate from the completed quarter (Q0) over one quarter ago (Q-1).EPS % Growth (Q0)/(Q-1) greater than EPS % Growth (Q-1)/(Q-2): The growth rate for the completed quarter (Q0) over one quarter ago (Q-1) has to be greater than the growth rate from one quarter ago (Q-1) over two quarters ago (Q-2).EPS % Growth (Q-1)/(Q-2) greater than EPS % Growth (Q-2)/(Q-3): The growth rate from one quarter ago (Q-1) over two quarters ago (Q-2) has to be greater than the growth rate from two quarters ago (Q-2) over three quarters ago (Q-3).In addition to this, we have added the following parameters:Current Price greater than or equal to $5: This screens out low-priced stocks.Average 20-day volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.The above criteria narrowed the universe of around 7,735 stocks to only nine. Here are the top three stocks:QuantumScapeQuantumScape develops and commercializes solid-state lithium-metal batteries for electric vehicles and other applications in the United States. QuantumScape has a Zacks Rank #2 (Buy). QS’s expected earnings growth rate for the current year is 21.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Silicon LaboratoriesSilicon Laboratories, a fabless semiconductor company, delivers analog-intensive mixed-signal solutions in the United States and other global markets. Silicon Laboratories has a Zacks Rank #2. SLAB’s expected earnings growth rate for the current year is 152.3%.Affiliated ManagersAffiliated Managers is an investment management firm serving mutual funds, institutional clients, retail investors and high-net-worth individuals in the United States. Affiliated Managers has a Zacks Rank #2. AMG’s expected earnings growth rate for the current year is 17.7%.You can sign up now for your 2-week free trial to the Research Wizard and start using this screen in your trading. Further, you can also create your own strategies and test them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.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.Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 Silicon Laboratories, Inc. (SLAB): Free Stock Analysis Report Affiliated Managers Group, Inc. (AMG): Free Stock Analysis Report QuantumScape Corporation (QS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks