For Immediate Release
Chicago, IL – January 24, 2023 – Stocks in this week’s article are bluebird bio BLUE, Pros Holdings PRO and Norwegian Cruise Line NCLH.
3 Stocks to Keep an Eye on for Superb Earnings Acceleration
Incessant earnings growth captivates almost everyone in the investment world, right from the top brass to research analysts. This is because earnings are a measure of the money a company is making. Still, earnings acceleration works better when it comes to lifting the stock price. Studies have shown that most successful stocks have seen an acceleration in earnings before an uptick in the stock price.
Earnings acceleration is the incremental growth in a company's earnings per share (EPS). 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 called earnings acceleration.
In the 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 yet caught the attention of investors. Once secured, it 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, at times, drag prices down.
The above criteria narrowed down the universe of around 7,735 stocks to only 17. Here are three stocks from the 17 to keep an eye on:
bluebird bio is focused on developing gene therapies for severe genetic diseases and cancer. Presently, BLUE has a Zacks Rank #3 (Hold). BLUE's expected earnings growth rate for the current year is 44.5%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Pros Holdings, a world leader in Pricing and Revenue Optimization Software, today announced that the underwriters of its initial public offering have exercised in full their over-allotment option. Currently, PRO has a Zacks Rank #3. PRO's expected earnings growth rate for the current year is 15.2%.
Norwegian Cruise Line is a leading cruise line operator. It owns and operates three brands — Oceania Cruises, Regent Seven Seas Cruises and Norwegian Cruise Line. Presently, NCLH has a Zacks Rank #3. NCLH's expected earnings growth rate for the current year is nearly 45%.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2042456/3-stocks-to-keep-an-eye-on-for-superb-earnings-acceleration
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