For Immediate Release
Chicago, IL – May 27, 2026 – Stocks in this week’s article are Cummins Inc. CMI, Atkore Inc. ATKR and Legacy Housing Corp. LEGH.
3 Promising Earnings Acceleration Plays for Investors
Experienced investors often look for companies with consistent earnings growth as a marker of solid profitability. However, an even more compelling indicator is earnings acceleration, which can be a key driver for stock price gains. Studies have found that many top-performing stocks exhibit earnings acceleration before their share prices start to move northward.
To that end, Cummins Inc., Atkore Inc. and Legacy Housing Corp. are showing strong earnings acceleration.
Earnings Acceleration: What Investors Should Know
Earnings acceleration refers to the incremental growth in a company’s earnings per share (EPS). Put simply, if a company’s quarter-over-quarter earnings growth rate increases over a given period, 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 identify stocks that haven’t yet caught investors’ attention and, once secured, will invariably lead to a rally in 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 three. Here are the stocks:
Cummins
Cummins provides global power solutions through five segments: Engine, Distribution, Components, Power Systems and Accelera. Cummins has a Zacks Rank #2 (Buy). CMI’s expected earnings growth rate for the current year is 21.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Atkore
Atkore manufactures and sells electrical, mechanical, safety and infrastructure solutions globally. Atkore has a Zacks Rank #2. ATKR’s expected earnings growth rate for the next year is 12.2%.
Legacy Housing
Legacy Housing builds, sells and finances manufactured and tiny homes, mainly in the southern United States. Legacy Housing has a Zacks Rank #2. LEGH’s expected earnings growth rate for the current year is 33.3%.
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Cummins Inc. (CMI): Free Stock Analysis Report
Atkore Inc. (ATKR): Free Stock Analysis Report
Legacy Housing Corporation (LEGH): Free Stock Analysis Report
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