EARNINGS PER SHARE (EPS) 

  • If EPS has consistently upward trend then it means that it may be worth investing in the company (Example of rising EPS: 1.25< 1.35<1.30<1.45<1.55<1.68<1.77…)
  • If EPS is erratic then it implies that company’s business is cyclical and highly competitive. At the time of demand, company increases production and thus expenses also; but when it turns into excess supply then company starts losing money till demand rises again. (Example of erratic EPS: 2.25< 4.25> 1.35 <1.47<3.56>1.55<1.73<1.87…)
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