For Immediate Release
Chicago, IL – February 20, 2024 – Stocks in this week’s article are AxoGen AXGN, Western Digital WDC and Gen Digital Inc. GEN.
3 Best Stocks to Buy for Remarkable Earnings Acceleration
Earnings growth captivates almost everyone, from the top brass to research analysts. After all, earnings are a measure of the money a company is making.
Still, earnings acceleration works even better when lifting the stock price. Studies have shown that most successful stocks have seen an acceleration in earnings before an uptick in their 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 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 sometimes drag prices down.
The above criteria narrowed the universe of around 7,735 stocks to only five. Here are the top three stocks:
AxoGen engages in developing and marketing surgical solutions for peripheral nerves. AxoGen currently has a Zacks Rank #2 (Buy). AXGN’s expected earnings growth rate for the current year is 46.7%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Western Digital is one of the largest hard disk drive producers in the United States. Western Digital currently has a Zacks Rank #2. WDC’s expected earnings growth rate for the current year is 40.1%.
Gen Digital Inc. is a company dedicated to powering Digital Freedom through its trusted Cyber Safety brands. Gen Digital currently has a Zacks Rank #2. GEN’s expected earnings growth rate for the current year is 7.7%.
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