On Truth Social, President Donald Trump floated the idea on Monday that companies should report semiannual earnings and do away with quarterly reports. That can have huge implications for the stock market.
For investors, a longer-term view of earnings can provide a clearer picture of whether a business has been able to sustain its profit growth.
For example, annual earnings wrap up four quarters of a company's performance. These yearly results can also be found in 10-K filings with the SEC.
IBD's premium research platform, MarketSurge, is an easy way to track annual earnings as well as analysts' annual earnings estimates for a company.
IBD Stock Checkup provides more details such as a company's three-year earnings-per-share growth rate. It also shows the number of years a company has reported annual growth in earnings.
IBD's EPS Rating measures earnings growth over the two most recent quarters. The rating also uses profits over the most recent three to five years and compares them with other companies in the IBD database.
Stock Market Leaders, High EPS
IBD research shows that the best growth stocks have an EPS Rating of 80 or higher and annual earnings growth of at least 25% in the most recent fiscal year.
The EPS Rating is found when accessing a quote at Investors.com. It's also in the IBD Stock Checkup. The rating is also a filtering tool on MarketSurge and can be found in other IBD stock lists such as IBD Long Term Leaders.
Combining stocks with strong annual earnings growth and outlook with current technical action can be a powerful combination for investing. Look for stocks in bases or near buy points with a rising relative strength line.
See The Latest Updates To IBD Watchlists
Micron Joins GeneDx In Elite 50 List With Strong Annual Earnings
The accompanying table shows select stocks in the IBD 50, as of Wednesday, that are expected to grow annual earnings by at least 25% in their current fiscal. Earnings are also expected to grow at least 25% in the next fiscal year.
GeneDx, a provider of genetic testing services, is still holding above its 10-week line after a breakout during the week ended Aug. 1. A pullback and bounce off the support level would put GeneDx in an alternate buy zone.
Meanwhile, stock market leader Palantir Technologies also made the cut after a bullish test of its 10-week line. The provider of data analytics software for defense and intelligence operations is also nearing the completion of a six-week cup base.
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