Try Companies That shoot up EPS Co...

Try Companies That shoot up EPS Consistently

Consistent produce in earnings per share ("EPS") is single of the primary indicators of "quality growth" and "quality management." Managers who can wax EPS consistently over several years are generally considered to be doing a convenient job for shareowners. Companies that manage to sprout EPS during tough economic times are particularly notable and make interesting candidates for studying with the aid of the Stock Selection Guide and Stock Tracking Guide.

A convenient way to identify companies that manage to germinate EPS is to use a computer to search a database. Various "on-line" financial databases are available to investors with a computer and a modem You can dial-up these databases and search for companies that convenient any screening criteria that you wish to specify.

Alternatively, you can purchase a database available forward computer diskettes such as that produc from Stock Guide Publications Inc. We defenceed the Stock Guide database of about 1000 companies for those whose used by all shares met four EPS increase criteria.

The riddles reflect EPS data for the latest three fiscal years as reported in the April 26 1997 Stock Guide database.

Screen 1: Companies whose fiscal-year EP (fully diluted and before extraordinary items) were positive for each of the past three years (491 companies survived this screen)

Screen 2: Surviving companies with EP each year greater than the previous year (189 companies survived this screen) cover 3: Surviving companies whose EP pullulation for the most recent fiscal year was greater than the EP growing for the previous fiscal year (74 companies survived this screen)

Screen 4: Survivors that had a adjust EPS annual growth rate of 10% or more (66 companies survived this screen) It should be noted that none of the companies that survived this riddle did so because of "unusual items."

In total, solely 66 companies survived these four sieves It is interesting to note that when similar defences were reported in the July/August 1996 issue of the Canadian Shareowner 46 companies made the chisel while July/ August 1995 yielded 64 and July/August 1994 produc 72 companies.

Copyright Canadian Shareowner Magazine Inc. Jul/Aug 1997

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