QuantumScape and 2 Stocks Set for Earnings Acceleration in 2026
Summarize this article with:
December 16, 2025 — 03:00 pm EST Written by Tirthankar Chakraborty for Zacks-> As we approach 2026, analysts might concentrate on companies with steady earnings growth as an indicator of ongoing profitability. However, it’s wise to pay attention to stocks showing earnings acceleration, since this trend more strongly influences stock prices. This is because numerous studies show that stocks often experience an earnings boost before their stock value increases.In this context, QuantumScape Corporation QS, Adobe Inc. ADBE and Silicon Laboratories Inc. SLAB are showcasing impressive 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.Look at stocks for which the last two quarter-over-quarter percentage EPS growth rates exceed the previous periods’ growth rates. The projected EPS growth rates for the upcoming quarter are expected to exceed those of prior periods.EPS % Projected Growth (Q1)/(Q0) greater than EPS % Growth (Q0)/(Q-1): The projected growth rate for the current quarter (Q1) over the completed quarter (Q0) has to be greater than the growth rate from the completed quarter (Q0) over one quarter ago (Q-1).EPS % Growth (Q0)/(Q-1) greater than EPS % Growth (Q-1)/(Q-2): The growth rate for the completed quarter (Q0) over one quarter ago (Q-1) has to be greater than the growth rate from one quarter ago (Q-1) over two quarters ago (Q-2).EPS % Growth (Q-1)/(Q-2) greater than EPS % Growth (Q-2)/(Q-3): The growth rate from one quarter ago (Q-1) over two quarters ago (Q-2) has to be greater than the growth rate from two quarters ago (Q-2) over three quarters ago (Q-3).In addition to this, we have added the following parameters:Current Price greater than or equal to $5: This screens out low-priced stocks.Average 20-day volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.The above criteria narrowed the universe of around 7,735 stocks to only 48. Here are the top three stocks:QuantumScape develops solid-state lithium-metal batteries for electric vehicles and other applications in the United States. Its expected earnings growth rate for the next year is 16%. Currently, QS has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Adobe is a global technology company offering digital media tools for creating, publishing, and promoting content. Adobe has a Zacks Rank #3. ADBE’s expected earnings growth rate for next year is 12.6%.Silicon Laboratories is a fabless semiconductor company providing analog-intensive mixed-signal solutions globally. SLAB currently has a Zacks Rank #3. Its expected earnings growth rate for next year is 197.8%. You can sign up now for your 2-week free trial to the Research Wizard and start using this screen in your trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard today. Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance. Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational. From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAdobe Inc. (ADBE) : Free Stock Analysis ReportSilicon Laboratories, Inc. (SLAB) : Free Stock Analysis ReportQuantumScape Corporation (QS) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.This data feed is not available at this time.