Chicago, IL – November 6, 2024 – Stocks in this week’s article are Snap Inc. SNAP, GeneDx Holdings Corp. WGS and Leonardo DRS, Inc. DRS.
3 Stocks to Buy for Stellar Earnings Acceleration for November
November has traditionally been one of the best months for stocks. This year, it won't be any different. Interest rate cuts and a rise in consumer outlays may trounce short-term gyrations in the stock market due to the upcoming presidential election. Thus, investors should capitalize on the positive trend by investing in earnings acceleration stocks.
This is because studies have shown that most successful stocks have seen an acceleration in earnings before an uptick in the stock price. To that end, stocks like Snap Inc., GeneDx Holdings Corp. and Leonardo DRS, Inc. are exhibiting solid 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 six. Here are the best three stocks:
Snap
Snap is a mobile camera app for sharing short videos and images known as Snaps. Snap currently has a Zacks Rank #2 (Buy). SNAP's expected earnings growth rate for the current year is 166.7%. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
GeneDx
GeneDx is a pioneer in healthcare, using advanced exome and genome testing with rare disease data sets. GeneDx currently has a Zacks Rank #1. WGS' expected earnings growth rate for the current year is 95.4%.
Leonardo DRS
Leonardo DRS develops and manufactures defense products for the U.S. military and allies. Leonardo DRS currently has a Zacks Rank #2. DRS' expected earnings growth rate for the current year is 21.9%.
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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/2363743/3-stocks-to-buy-for-stellar-earnings-acceleration-in-november
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