How are companies ranked?
EPSG Heavyweights uses a novel but incredibly simple approach to screening and ranking companies EPS growth history to make it easy for you to work with. First we retrieve actual quarterly EPS going back as far as possible. Then we calculate the rolling TTM EPS values for each quarter. Finally we figure out the percentage quarters that saw the TTM EPS higher than the previous over three different intervals (All Data, 10 Years, and 5 Years). That’s it and from these values we apply the following rankings:
– Super Heavyweight: 90%-100% with 25 years of data available
– Heavyweight: 75%-89% with 25 years of data available
– Heavyweight Contender: 75%-100% with between 10-25 years of data
– Middleweight: 60%-79% with 10+ years of data
– Lightweight: <60% with 10+ years of data
– Unranked companies have less than 10 years of data available
Heavyweight companies with a long history of growing their EPS have demonstrated they have a business model and/or stock buyback program that consistently increases shareholder value.
The EPSG Heavyweights ranking system is not as concerned about a company meeting analysts expectations as we are in seeing a nice smooth upward trend of predictable EPS growth. Click here to read FAQ: “One of my Heavyweights missed their quarterly EPS estimate should I sell?”