Three Stocks Showing Strong Earnings Momentum Heading Into 2026

2025-12-26 02:24:37

When hunting for winning stocks in 2026, many investors fixate on steady earnings. But here’s the real secret: what truly moves stock prices is earnings acceleration—when companies don’t just grow profits, but grow them at an increasingly faster rate. This concept of understanding the magnitude of acceleration separates casual traders from those consistently ahead of the curve.

Why Earnings Acceleration Matters More Than You Think

Traditional earnings growth is yesterday’s news. By the time Wall Street publishes earnings data, that growth is already baked into stock prices. Earnings acceleration, however, catches investors off-guard because it signals a company that’s not just performing well—it’s performing better than before.

Think of it this way: if a company’s quarter-over-quarter earnings per share (EPS) growth rate is itself accelerating, you’ve spotted something special. The magnitude of this acceleration reveals how fundamentally strong the business truly is. A company showing increasing percentage gains in earnings across consecutive quarters typically means management is executing better, costs are under control, or market conditions are improving—or all three.

The Numbers Behind the Screen

How do you identify these rare gems? Start by tracking the trajectory of growth rates themselves:

The core pattern to watch:

Most recent quarter’s EPS growth must exceed the prior quarter’s growth rate
That prior quarter’s growth must surpass the quarter before it
Three consecutive quarters of accelerating growth rates signals genuine momentum

Add these filters to narrow the field:

Stock price minimum: $5 (eliminates penny stocks)
Average 20-day trading volume: 50,000+ shares (ensures you can actually buy/sell)

When researchers applied these criteria to the market’s 7,735+ stocks, only 48 passed the screen. That’s how selective this approach is.

The Winners: Three Stocks to Watch

QuantumScape Corporation (QS) leads the charge. This solid-state lithium-metal battery developer for electric vehicles shows an expected earnings growth rate of 16% for the next year. Currently ranked #3 (Hold) by Zacks, the company sits at the intersection of two massive trends: EV adoption and battery innovation.

Adobe Inc. (ADBE) demonstrates the power of acceleration in a different arena. As a global digital media software provider, Adobe’s expected earnings growth trajectory for the coming year reaches 12.6%. Its Zacks Rank #3 reflects measured confidence in the company’s direction.

Silicon Laboratories Inc. (SLAB) represents the most dramatic acceleration story. This fabless semiconductor firm is projecting 197.8% earnings growth for next year—a number that illustrates the magnitude of acceleration when conditions align perfectly. Current Zacks Rank: #3.

The Bottom Line

Earnings acceleration isn’t just another metric—it’s a leading indicator that reveals which stocks are poised to move before the broader market catches on. By focusing on companies where growth itself is accelerating, you’re essentially finding the stocks that haven’t yet received their standing ovation from investors.

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