EARNINGS PER SHARE RANK SCREEN
UNEMOTIONAL EARNINGS GROWTH: The reason for the importance of this indicator/screen
is that it is not related to the investor driven price of the stock, either past
or present, but rather to the fundamental strength of the company based upon their
proven ability to perform.
Different sources, such as TeleChart©,TeleScan© and others have their own
closely held proprietary methods of Earnings Growth.This is a measure of earnings
growth of the stock the last 5 years with the majority of weighting given to the
quarter over quarter and year over year performance, AGAINST THE ENTIRE MARKET
IRRESPECTIVE OF EXCHANGE. If we have a stock that has been ranked as 80 or better,
that means that this stock viewed from the perspective of fundamental earnings growth
outperformed 80% of ALL other common stocks in the entire database during
the last year, (previous 52 weeks).
This is an extremely powerful screen technique whose importance lies in its ability to show quality and fundamental strength far more effectively than antiquated measurments of P/E evaluation.
When you select EPS Rank from the Criteria menu you can then click on "ALL" which means that you will accept all rankings, or any of the graduated slections below. As an example, clicking on "80+" means that you will only accept screens of stocks which have 80 or greater relative strength. Conversely, if you were to choose "<30" you would be looking for stocks which were performing worse than 70% of the market.
You will find that the EPS Rank does not exactly match those of such sources as
TeleScan© or Telechart©
who also provide their own proprietary rankings. Indeed you will see vast differences
between most of these services because of the way and the frequency with which they
do their updates. Some sources only update once a month. While we update all of our
indicators nightly, we only update EPS growth once a week because it is a fairly
stable measurement.
The source that we have used for our Pitbull Investor© Selections for the past
12 years has been a manual screen of Investor's©. Of all the
sources we believe this one to be the most accurate, however we have found these
rankings have the same problems during the first year of a stock's history...Companies
with no earnings will recieve the same ranking as companies with years of earnings
with no apparent reason...Our algorithms take this discrepancy into account .