Earnings per share (EPS) is a company's net profit divided by the number of common shares it has outstanding. EPS indicates how much money a company makes for each share of its stock and is a widely used metric for estimating corporate value.

What is a good EPS ratio for a stock?

Specifially, stocks with EPS growth rates of at least 25% compared with year-ago levels suggest a company has products or services in strong demand. It's even better if the EPS growth rate has been accelerating in recent quarters and years.

Is earnings the same as earnings per share?

A company's earnings are its after-tax net income, or profits, in a given quarter or fiscal year. ... Earnings per share (EPS) is a company's net income (or earnings) divided by the number of common shares outstanding.