Three High-Growth Potential Stocks: Understanding Earnings Acceleration Heading into 2026

When evaluating stocks for 2026, many investors focus on consistent earnings growth as a sign of stability. Yet a more compelling indicator exists: earnings acceleration—when the rate of earnings growth itself accelerates. Research consistently demonstrates that stocks experiencing accelerating earnings tend to outperform before broader market recognition catches up, making this metric a powerful predictor of price appreciation.

Three companies currently stand out on this metric: QuantumScape Corporation (QS), Adobe Inc. (ADBE), and Silicon Laboratories Inc. (SLAB). Each displays the hallmark characteristics of earnings acceleration that could drive significant returns.

Decoding Earnings Acceleration

Earnings acceleration differs fundamentally from simple earnings growth. While steady earnings growth is already priced into most stocks, acceleration captures companies whose profit momentum is increasing—meaning quarter-over-quarter EPS growth rates are climbing rather than plateauing.

This distinction matters because it signals fundamental business strength. When a company’s EPS growth rate rises from one quarter to the next, it indicates not just profitability but accelerating profitability. Conversely, when growth rates flatten or decline, it often precedes price deterioration.

The mechanics are straightforward: if Q1 earnings growth exceeds Q0’s growth rate, which itself exceeded Q-1’s growth rate, the company demonstrates genuine acceleration—a pattern that historically attracts institutional capital and drives share price rallies.

The Stock Selection Framework

Identifying earnings acceleration candidates requires specific criteria. Researchers screen for stocks meeting these conditions:

Three-Quarter Acceleration Pattern: The most recent quarter’s EPS growth rate must exceed the prior quarter’s, which must itself exceed the quarter before that. This creates a clear upward trajectory.

Forward Guidance: Projected earnings growth for the upcoming quarter should surpass recent quarter performance, confirming management expects momentum to continue.

Liquidity Standards: Stocks must trade above $5 with average 20-day volumes exceeding 50,000 shares, ensuring sufficient liquidity for meaningful positions.

Applying these filters across roughly 7,735 stocks reduced the universe to just 48 candidates—a dramatic narrowing that highlights how selective true earnings acceleration actually is.

The Three Leading Candidates

QuantumScape (QS), a solid-state battery developer for electric vehicles and industrial applications, projects 16% earnings growth for the coming year. The company currently carries a Zacks Rank #3 (Hold), indicating moderate upside potential as its core technology matures and production scaling accelerates.

Adobe (ADBE) operates as a global digital media powerhouse, offering creative and publishing solutions used by millions of professionals. With projected annual earnings growth of 12.6% and a Zacks Rank #3 rating, Adobe demonstrates steady momentum in an expanding digital content market.

Silicon Laboratories (SLAB), a fabless semiconductor manufacturer specializing in analog and mixed-signal solutions, stands out with projected earnings growth of 197.8%—a dramatic figure reflecting significant operational leverage or recent strategic shifts. This extraordinary acceleration is equal to the most compelling opportunities identified by the screening methodology.

Why This Matters for 2026

The earnings acceleration approach has proven effective precisely because it identifies companies on inflection points before consensus catches up. By focusing on the rate of growth rather than absolute levels, investors position themselves ahead of institutional buying that typically follows earnings surprises.

As the market heads into 2026, paying attention to these earnings acceleration signals rather than passive growth metrics could meaningfully improve portfolio positioning and returns.