For Immediate Release
Chicago, IL – May 16, 2023 – Stocks in this week’s article are Catalyst Pharmaceuticals CPRX, Warby Parker WRBY, MakeMyTrip Ltd. MMYT, Brookfield Renewable Partners BEP & Century Aluminum CENX.
5 Stocks to Keep a Tab on for Solid Earnings Acceleration
Companies exhibiting continuous earnings growth will continue to enthrall almost everyone in the investment world, from 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. Some of the notable companies to have witnessed solid earnings acceleration as of now are Catalyst Pharmaceuticals, Warby Parker, MakeMyTrip Ltd., Brookfield Renewable Partners & Century Aluminum.
Earnings acceleration, in fact, 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 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 sometimes drag prices down.
The above criteria narrowed down the universe of around 7,735 stocks to only 12. Here are five of the 12 stocks that are worth a look:
Catalyst Pharmaceuticals is a development-stage biopharmaceutical company. The company currently has a Zacks Rank #3 (Hold). CPRX's expected earnings growth rate for the current year is 94.7%. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
Warby Parker is a direct-to-consumer eyewear brand. The company currently has a Zacks Rank #3. WRBY's expected earnings growth rate for the current year is 500%.
MakeMyTrip Limited is an online travel service company that offers travel products and solutions in India and the United States. The company currently has a Zacks Rank #2 (Buy). MMYT's expected earnings growth rate for the current year is 85%.
Brookfield Renewable Partners owns and operates a renewable power platform. The company currently has a Zacks Rank #3. BEP's expected earnings growth rate for the current year is 95%.
Century Aluminum is engaged in the production of primary aluminum in the United States and Iceland. The company currently has a Zacks Rank #3. CENX's expected earnings growth rate for the current year is 107.7%.
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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/2095116/5-stocks-to-keep-a-tab-on-for-solid-earnings-acceleration?art_rec=quote-stock_overview-zacks_news-ID03-txt-2095116
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