High EPS Stocks - Screener (2024)

FAQs

Is a high EPS good for a stock? ›

In general, higher EPS is better but one has to consider the number of shares outstanding, the potential for share dilution, and earnings trends over time. If a company misses or beats analysts' consensus expectations for EPS, its shares can either crash or rally, respectively.

Simply divide a company's net income by its number of shares outstanding. But to find top growth stocks, seek outstanding profit performance. Specifically, stocks with EPS growth rates of at least 25% compared with year-ago levels suggest a company has products or services in strong demand.

A key point when analyzing the EPS growth rate is the time span. A company that can only sustain 20% EPS CAGR over three years and then stagnates is at an inferior level compared to a company that can sustain 15% EPS CAGR over five years.

What is Earnings Per Share? Earnings per share or EPS is a common metric used to carry out corporate value. It can be defined as the value of earnings per outstanding share of common stock of the company. EPS indicates the company's profitability by showing how much money a business makes for each share of its stock.

Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio. But it doesn't stop there, as different industries can have different average P/E ratios.

A higher basic EPS generally indicates higher profitability and is considered favorable. However, basic EPS does not account for dilutive securities like stock options and convertible bonds.

S&P 500 Earnings Per Share is at a current level of 47.79, up from 47.65 last quarter and up from 39.61 one year ago. This is a change of 0.29% from last quarter and 20.65% from one year ago.

Even if a company has a negative EPS, which means it's losing money, the stock may still be worth buying. In the case of Amazon, for example, the company had a negative EPS for a long period of time, but its stock price still increased because of other indicators, including its massive market share.

Bottom Line. There's no fixed answer for what is a good EPS. When comparing companies, it's helpful to look closely at how EPS is trending and how it matches up to competitor earnings. Remember that a higher EPS can suggest growth and stock price increases.

What does EPS growth indicate? ›

EPS growth shows how rapidly a company has been able to boost its "bottom line" on a per-share basis. Growth investors might look for companies with EPS growth of, say, 20% or more.

What Is a Good Dividend Yield? Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment. Your own investment goals should also play a big role in deciding what a good dividend yield is for you.

There's no definition of a “good” or “bad” EPS value. But all other things being equal, the higher a company's EPS is, the better. The opposite is true for a company's price-to-earnings (P/E) ratio. In most cases, the lower a company's P/E ratio is, the better.

Significance of Earnings Per Share

EPS helps investors understand whether investing in a particular company is profitable. A consistent EPS growth may indicate the company's profitability, suggesting its ability to pay higher dividends over time.

Besides, investors and analysts like to see the fast-growing EPS instead of revenue. This is because it shows that the company is becoming more efficient in running the business. The more money left after expenses and taxes, the more profit stockholders make.

eps is a measure of a company's profitability and is calculated by dividing a company's net income by the number of its outstanding shares. Generally speaking, when EPS is growing, stock prices tend to follow suit. This is because as a company becomes more profitable, investors are willing to pay more for its shares.

Companies can pay a dividend per share that exceeds its EPS. A company whose EPS is lower than its dividend in a current year may be coming off of a string of more profitable years, with higher EPS, from which it has set aside cash to pay future dividends.