3 Top Stocks With Earnings Acceleration to Buy in 2025

Core Viewpoint - In 2025, stocks are expected to rise due to Donald Trump's pro-growth plans, the Federal Reserve's interest rate policies, and a robust U.S. economy, with a focus on selecting stocks that exhibit strong earnings acceleration to capitalize on this trend [1]. Earnings Acceleration - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), indicating an increase in the quarter-over-quarter earnings growth rate within a specified timeframe [3]. - Stocks that demonstrate earnings acceleration are likely to experience a rally in share prices, as this metric highlights companies that have not yet attracted investor attention [4]. Screening Parameters - The screening process involves identifying stocks where the last two quarter-over-quarter EPS growth rates exceed previous periods' growth rates, with projected EPS growth rates for the upcoming quarter expected to surpass prior periods [6]. - Specific criteria include: - EPS % Projected Growth (Q1)/(Q0) must be greater than EPS % Growth (Q0)/(Q-1) [7] - EPS % Growth (Q0)/(Q-1) must be greater than EPS % Growth (Q-1)/(Q-2) [8] - Current Price must be greater than or equal to $5 and average 20-day volume must be greater than or equal to 50,000 [8]. Top Stocks Identified - Genesco Inc. (GCO) has a Zacks Rank 1 (Strong Buy) with an expected earnings growth rate of 44.6% for the current year [9]. - Lands' End, Inc. (LE) also holds a Zacks Rank 1, with an expected earnings growth rate of 373.3% for the current year [10]. - Mercury General Corporation (MCY) has a Zacks Rank 1 and an expected earnings growth rate of 1,583.3% for the current year [11].