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Zacks.com featured highlights Genesco, Lands' End and Mercury General

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For Immediate Release

Chicago, IL – January 7, 2025 – Stocks in this week’s article are Genesco Inc. (GCO - Free Report) , Lands' End, Inc. (LE - Free Report) and Mercury General Corp. (MCY - Free Report) .

3 Top Stocks with Earnings Acceleration to Buy in 2025

In 2025, stocks are set to rise supported by Donald Trump's pro-growth plans, the Federal Reserve's interest rate policies, and a strong U.S. economy. To capitalize on the bullish trend, investors should select stocks with strong earnings acceleration. This is because studies have shown that most successful stocks have seen an acceleration in earnings before an uptick in the share price.

To that end, Genesco Inc. Lands' End, Inc. and Mercury General Corp. are exhibiting strong earnings acceleration.

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:

Genesco

Genesco sells footwear, apparel and accessories as a retailer and wholesaler. Genesco currently has a Zacks Rank #1 (Strong Buy). GCO's expected earnings growth rate for the current year is 44.6%. You can see the complete list of today's Zacks #1 Rank stocks here.

Lands' End

Lands' End sells apparel, swimwear, outerwear, accessories, footwear, home products and uniforms digitally. Lands' End currently has a Zacks Rank #1. LE's expected earnings growth rate for the current year is 373.3%.

Mercury General

Mercury General engages in writing personal automobile insurance in the United States. Mercury General currently has a Zacks Rank #1. MCY's expected earnings growth rate for the current year is 1,583.3%.

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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/2391852/3-top-stocks-with-earnings-acceleration-to-buy-in-2025

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.

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Strong Stocks that Should Be in the News

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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Genesco Inc. (GCO) - free report >>

Mercury General Corporation (MCY) - free report >>

Lands' End, Inc. (LE) - free report >>

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