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

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. 

American Century Investments and Benefits Canada are not affiliated companies.

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