Chicago, IL – May 6, 2025 – Stocks in this week’s article are Lam Research Corp. LRCX, Unity Software Inc. U and Gulfport Energy Corp. GPOR.
3 Stocks to Buy for Earnings Acceleration in May: LRCX, U, GPOR
Top executives and analysts are interested in consistent earnings growth, which signifies a company's profitability. However, earnings acceleration has an even greater effect on increasing stock prices. Studies indicate that successful stocks experience an acceleration in earnings before a rise in stock value.
To that end, Lam Research Corp., Unity Software Inc. and Gulfport Energy Corp. are exhibiting strong earnings acceleration this month.
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 four. Here are the top three stocks:
Lam Research
Lam Research designs and services semiconductor processing equipment for integrated circuit fabrication. Lam Research has a Zacks Rank #2 (Buy). LRCX's expected earnings growth rate for the current year is 32.8%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Unity Software
Unity Software operates a platform for creating and expanding games and interactive experiences worldwide across various devices. Unity Software sports a Zacks Rank #1, with an anticipated earnings growth rate of 34.5% for the current year.
Gulfport Energy
Gulfport Energy explores and produces natural gas, crude oil and natural gas liquids in the United States. Gulfport Energy has a Zacks Rank #1. GPOR's expected earnings growth rate for the current year is 85.3%.
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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/2462423/3-stocks-to-buy-for-earnings-acceleration-in-may-lrcx-u-gpor
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