Earnings acceleration—a change in the velocity of growth—indicates something is affecting a company’s business prospects. Focusing on that force has been a cornerstone of our growth investment process for more than 30 years.

Our Global Growth Equity Desk expanded the scope of analysis to determine the continued viability of earnings acceleration as a potential source of significant, durable and diversifying excess returns. Does the data still stand up?

Research Highlights:

  • Percent of companies with accelerating earnings over time
  • Distribution of accelerating companies by sector
  • Excess returns over MSCI ACWI Index
  • Excess returns by region and decile
  • Correlation of an earnings acceleration portfolio to three equity factors: momentum, value and size
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For Institutional Use Only/Not for distribution to the public

Diversification does not assure a profit nor does it protect against loss of principal.

This material has been prepared for educational purposes only and is not intended as a personalized recommendation or fiduciary advice. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice. 

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