EPS (Earnings Per Share)
Also called: earnings per share
A company's net profit divided by its shares outstanding — the per-share slice of earnings, and the 'E' in the P/E ratio.
EPS = net income ÷ shares outstanding. It standardizes profit to a per-share basis so companies of different sizes can be compared and so price can be turned into a multiple (P/E). Diluted EPS counts options and convertibles that could increase the share count.
What moves stocks is usually the trajectory and the surprise: accelerating quarterly EPS growth and beats versus analyst estimates tend to drive big advances, while misses punish the price. EPS growth is a cornerstone of growth strategies like CAN SLIM.
On StockSetups
StockSetups screens on year-over-year EPS growth and tracks the last earnings surprise and a power-earnings-gap score, so you can find names with accelerating, beating earnings behind a technical setup.
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