Chicago, IL – November 29, 2024 – Stocks in this week’s article are Bilibili Inc. BILI, BrightSphere Investment Group Inc. BSIG and Orchid Island Capital, Inc. ORC.
Top 3 Stocks with Strong Earnings Acceleration to Buy
Persistent earnings growth grabs the attention of top executives and analysts because it reflects a company’s profitability. Yet, 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 the stock price. To that end, Bilibili Inc., BrightSphere Investment Group Inc. and Orchid Island Capital, Inc. are exhibiting 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.
The above criteria narrowed the universe of around 7,735 stocks to only 11. Here are the top three stocks:
Bilibili
Bilibili provides an online entertainment platform primarily in China. Bilibili currently has a Zacks Rank #2 (Buy). BILI’s expected earnings growth rate for the current year is 104.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BrightSphere Investment Group
BrightSphere Investment is a diversified multi-boutique asset management company with a Zacks Rank #1. BSIG’s expected earnings growth rate for the current year is 45.5%.
Orchid Island Capital
Orchid Island Capitals is a specialty finance company that invests in residential mortgage-backed securities with principal and interest payments guaranteed by the United States. ORC currently has a Zacks Rank #2. Its expected earnings growth rate for the current year is almost 74%.
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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/2376289/top-3-stocks-with-strong-earnings-acceleration-to-buy
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