Chicago, IL – September 26, 2022 – Stocks in this week’s article are PDF Solutions PDFS, Infineon Technologies IFNNY and PattersonUTI Energy PTEN.
3 Best Stocks to Buy Now for Solid Earnings Acceleration
Persistent earnings growth captivates almost everyone, 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, 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 of time. 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 three. Here are the stocks:
PDF Solutions provides technologies and services to enable semiconductor companies to improve the yield and performance of manufactured integrated circuits by providing infrastructure to integrate the design and manufacturing processes. PDFS currently has a Zacks Rank #2 (Buy). PDFS’ expected earnings growth rate for the current year is 425%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Infineon Technologies produces and sells semiconductors — microchips that have enabled the information age and led to a vast increase in the speed, portability and capabilities of computers and a myriad of other electronic devices. IFNNY currently has a Zacks Rank #2. IFNNY’s expected earnings growth rate for the current year is 37.5%.
PattersonUTI Energy is an oilfield services company. PTEN currently has a Zacks Rank #2. For the current year, PTEN’s expected earnings growth rate is 118.7%.
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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/1984207/3-best-stocks-to-buy-now-for-solid-earnings-acceleration
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