EPS Example

EPS – Earnings Per Share. This is a critical number. Actually, the P/E ratio is the critical number. Growth stocks start to get higher and higher P/E ratios. I was doing some coding this morning and a was doing some checking and I ran across an interesting chart. This is a chart of ALGN from ZACKs with EPS on the left axis and price on the right axis. Notice how EPS and price tend to move together until about 1/3 of the way through 2017 when price seems to leave EPS in the dust. I think that is a very important point in the stock’s price development. You can also find some good data on EPS when looking at the EPS page from Zacks for a particular stock.