We make it easy to find Earnings Per Share Growth stocks
Earnings Per Share Growth isn’t the only measure of a company’s stock but it matters… A LOT!!!
Companies with proven business models and long histories of EPS growth can reasonably be expected to continue in the future. Our Heavyweights have weathered multiple recessions and economic downturns.
Welcome to Earnings Per Share Growth Heavyweights
Earnings Per Share Growth Heavyweights is a novel yet simple screening system that both ranks and charts over 700 stocks each month. First we compile 25 years of earnings and price data for members of the DOW30, S&P500, Nasdaq100 and TSX. Then we rank the companies with more than 10 years of earnings per share (EPS) data into five weight classes:
- Super Heavyweight
- Heavyweight
- Heavyweight Contender
- Middleweight
- Lightweight
Now that you have a sense of what we do, please continue exploring to learn more about us. Check out the interactive DOW30 sample list below. Or click the black button to download your own copy. Then search our “Charts” page for your favorite ticker symbols. Finally don’t forget to subscribe to our free monthly list containing data for all companies in the indexes we follow.
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Interactive DOW30 Sample List
Computer – Click any cell in table to activate arrow key and scroll bar navigation
Mobile – Rotate screen to landscape and swipe anywhere right of EPSG Ranking column
Or click here to go full screen
Value of Earnings Per Share Growth Heavyweights
Before diving into the value Earnings Per Share Growth Heavyweights provides… with our unique approach to ranking the stocks of North America’s largest indexes by their historical ability to grow earnings… we need to talk about P/E ratio.
P/E Ratio:
P/E or the Price/Earnings Ratio is the most widely used measure to value and compare stocks. These comparisons are generally made between stocks in the same business sector. It can also be used to compare a company’s current P/E ratio against their own historical values. Basically P/E represents the price investors will pay for $1 of a company’s annual profits (or earnings per share). Since companies report earnings quarterly (i.e. four times a year) the daily fluctuation in P/E is driven by stock price. Below is the simple formula for calculating P/E Ratio:
P/E = Current Stock Price / Earnings Per Share (EPS)
There are two variants of the P/E ratio: Forward and Trailing. As the names suggest the Forward P/E is the current stock price divided by earnings estimated into the future. Likewise, Trailing P/E is the current price divided by the actual earnings from the previous year. Earnings Per Share Growth Heavyweights concentrates on a stock’s trailing adjusted earnings per share for three reasons:
1. Forward earnings are based on estimates which may or may not materialize
2. Trailing earnings are actual achieved values
3. Adjusted earnings remove onetime items considered to be outside the scope of normal business
Visit our Articles Page for more information on Earnings Per Share and and P/E Ratio.
Importance of Consistent EPS Growth:
Companies with proven business models and long histories of EPS growth can reasonably be expected to continue in the future. Our Heavyweights have weathered recessions and economic downturns. EPS Growth investors do however need to be on the lookout for significant changes in a company’s business outlook.
Meanwhile it is also important to note that what investors are willing to pay for $1 of earnings can fluctuate. Specifically, P/E ratios can vary from sector to sector and will expand or contract due to macro economic conditions. For example the P/E for technology growth stocks are likely to be higher than that of utility sector value stocks. Similarly investors are more likely to pay higher prices during bull markets than they would in a recession. Finally all stocks can get swept up in short term panic or euphoria and become miss-priced.
Value investors with well constructed diversified portfolio of quality companies will be able to weather broad economic cycles. Earnings Per Share Growth Heavyweights wants to be your new tool to help you find long term investments at the right price when others are panicking and recognize when it may be time to trim a position if a stock price gets too far ahead of its long term earnings trend.
Earnings Per Share Growth Heavyweights Value:
With an understanding of the P/E ratio it is time to discuss the value of our EPS ranking system. As stated above:
– Stock prices fluctuate daily and can be impacted by the short term mood of the market
– Companies only report earnings four times a year
Even though earnings data fluctuates from quarter to quarter it can easily be smoothed out to show long term trends. Our system helps investors find stocks with consistent historical EPS growth. This consistency greatly simplifies the P/E ratio making it easier to compare today’s price with historical values. Furthermore unless there are significant changes in a company’s business outlook consistency can also be used to predict future trends.
Using our data, investors can more effectively use the P/E ratio to initiate, prune or nibble Heavyweight positions. More importantly value investors with well constructed diversified portfolios of quality companies will be able to weather broad economic cycles. Earnings Per Share Growth Heavyweights can help you find long term investments at the right price when others are panicking. We can also help you recognize when a stock’s price gets ahead of it’s long term earnings trend.
Our Earnings Per Share Growth rankings are not intended to be your only source of data when making investment decisions (refer to “Should I make investment decisions solely with EPS Growth Heavyweights data?” in the FAQ page). We do however feel we deliver our subscribers a unique screening tool that provides great value when coupled with other factors.
It’s About Being Able to Sleep at Night:
Ultimately we sincerely hope our charts and free monthly spreadsheet can help you build a diversified portfolio that does not keep you up at night.