For Immediate Release
Chicago, IL – October 22, 2018 - Stocks in this week’s article are McCormick & Company, Inc. MKC, Helen of Troy Limited HELE, Vale S.A. VALE and Raytheon Company RTN.
4 Stocks to Invest in for Rock-Solid Earnings Acceleration
Earnings growth captivates all and sundry, right from the top brass to research analysts. This is because earnings measure the extent of money a company is making. Notably, earnings are essentially revenues that the company generates after deducting the cost of production over a given period of time.
However, earnings acceleration works even better when it comes to driving the stock price. Studies have shown that a majority of successful stocks saw acceleration in earnings before an uptick in the stock price.
Basically, earnings acceleration indicates incremental growth in a company’s bottom line. 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 referred to as earnings acceleration.
In case of higher earnings, you pay for something that is already reflected in the stock price. But earnings acceleration helps spot stocks that haven’t caught the attention of investors yet, which once secured will invariably lead to a rally in the share price. This is because earnings acceleration considers both direction and magnitude of growth rates.
Rising 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 improved earnings signifies a period of consolidation or slowdown while a decelerating percentage of earnings growth may at times drag prices down.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/329364/4-stocks-to-invest-in-for-rocksolid-earnings-acceleration
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Helen of Troy Limited (HELE) : Free Stock Analysis Report
Raytheon Company (RTN) : Free Stock Analysis Report
McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report
VALE S.A. (VALE) : Free Stock Analysis Report
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