When looking for earnings acceleration what to look for is a common question I am asked. Following examples of earnings or sales trends in Reuters are what to look for.
Obviously these are ideal examples and you will only find 20 -25 stocks like this in an earnings season.
Lets look at an ideal example NTRI
Now if you see the 2004 to 2005 comparison of earnings, that is acceleration
Now that is clear earnings acceleration.
Or lets look at RVBD for sales/earnings acceleration
Look at FRPT as ideal example of 100% plus sales acceleration
Sales went up from 10 to 50, now see what happened to price.
The reason to understand it well is if you get it right, per trade profitability can be very high. In the NTRI example the stock was trading at around 1 dollar at the time of first earnings acceleration. It went to 30 in a year after that first earnings acceleration. Similarly FRPT was in single digit when the first sales acceleration happened. When you find NTRI or FRPT kind of earnings acceleration then you get multi week move.