CAN SLIM(3)

Current Earnings Growth(2)

How to Identify Companies with Superior Earnings Growth

Investor's Business Daily and investors.com make it easy to identify companies with superior earnings growth:

An Earnings Per Share (EPS) Rating is provided for all stocks in our database.

This proprietary rating measures a company's earnings performance by looking at its:

1) latest two quarters' earnings per share growth,

2) 3-year annual earnings growth rate, and

3) stability of annual earnings growth.

These factors are then weighted and compared to the same measures for all other public companies.


EPS Ratings are on a 1-99 scale, with 99 being highest.

An 80 EPS Rating, for example, indicates that a stock is outperforming 80% of all other companies based on earnings performance.

In other words, a stock with an EPS Rating of 80 is in the top 20% of all companies in terms of recent quarterly and annual earnings growth.

Research shows that the stocks that make the most powerful gains usually have an EPS Rating of 80 to 85 or higher.