EPS Growth

The stock market is huge and crowded but some gem stocks can be game changers for you. Finding such potential stocks needs market research and some metrics also play crucial role. EPS (Earning per share) is one of such key fundamental financial metrics that usually measure the profitability of any company. This is usually calculated by dividing the net income of the company by number of outstanding common shares. This is a crucial indicator for investors which shows the real potential earning growth of the company. Let’s understand why EPS is important and factors that affect EPS growth. EPS is very important for stock investors because higher EPS usually shows the company is generating more profit per share which indicates the strong financial strength of the company. The growth of EPS is usually related to stock price appreciation. In such case, if the EPS value is higher then there is a possibility of the growth of stock price. Companies with stable EPS growth are usually able to pay dividends to their shareholders. When it comes to factors that can influence the company’s EPS growth, there are some like revenue growth, cost management, share repurchases and economic conditions. An increase in sales can generate high profits which show higher EPS. Efficient cost control can easily progress profit margins and increase EPS. Overall economic environment can also impact the profitability of the company. For instance, during economic downturns the demand for services and products may decrease which can lead to lower EPS. Finding potential high EPS stocks needs market analysis and in-depth research but don’t worry FindScan is there to help you. This screener allows its users to set attributes like market valuations, percentage growth, EPS rate, moving averages and provide best screened stocks list according to their investment needs. The clean and user-friendly interface of this screener makes it suitable for both new and professional traders. Try FindScan today and share your experience with us.