EPS, or Earnings Per Share, is a key financial metric that indicates how much net profit a company generates for each outstanding share during a specific period, usually a quarter or a year. It is calculated by dividing the net profit—after deducting any preferred dividends—by the average number of shares outstanding. EPS is important for investors because it provides insight into a company’s profitability on a per-share basis, allowing for comparison between different companies and tracking a company’s growth over time. A higher and growing EPS often signals a healthy and thriving business, which can be a positive indicator when making investment decisions.
Why EPS?
From the perspective of swing trading, a growing and consistently exceeding EPS is very important. This indicator reflects a positive trend and strong fundamental growth of the company, which increases the likelihood of continued price appreciation during our investment horizon. Conversely, a declining EPS or failure to meet expectations may signal weakening price momentum, serving as a warning not to enter the position.
Answers and Score
| ANSWER | SCORE | PRIORITY |
| EPS is rising | 10 | 1,1 |
| EPS is declining | 3 | 1,1 |
| EPS has no clear trend | 5 | 1,1 |
Where to find volatility values?
You can find the value, for example, on investing.com.
This question is part of this analyzer.
| Decameron Stock Analyzer – Swing trading, v.1.0 | open analyzer |
