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Earnings per share, or EPS, is one of the most widely used indicators of a company’s profitability.
High EPS can be an attractive signal, but on its own doesn't make a compelling investment.
Stocks to buy with the best EPS trends include Five Below, Neurocrine Biosciences and State Street.
Earnings per share, or EPS, remains one of the most widely used indicators of a company’s profitability and financial health. Investors screening for high EPS stocks are generally seeking businesses with strong earnings power, consistent growth, and the ability to deliver returns that outpace the broader market.
In 2026, opportunities tied to robust EPS are appearing across a range of sectors, including technology, consumer staples, and industrials. Many of these candidates are large, established companies with proven earnings strength, alongside select growth names that may still be undervalued relative to their profit potential.
Is it good to invest in high EPS stocks?
High EPS can be an attractive signal because it reflects a company’s ability to generate meaningful profits relative to its share count. Businesses with expanding earnings often benefit from solid fundamentals, healthy cash flow, and greater flexibility to reinvest in operations or return capital to shareholders through dividends and buybacks.
However, EPS on its own does not make a stock a compelling investment. A company can report strong earnings while still trading at an excessive valuation or facing headwinds that could limit future growth.
What is a good EPS for stocks?
There is no single benchmark that defines a good EPS. Instead, investors typically assess it in context, focusing on several key factors.
Industry comparisons (tech vs. utilities, for example). Different sectors operate under distinct cost structures and growth expectations, so benchmarking EPS against direct peers provides a more meaningful measure of performance.
Growth trends over time. A steadily rising EPS is often more valuable than a high but flat figure, as it reflects improving profitability and supports long-term compounding potential.
Consistency of earnings. Companies that deliver reliable results across multiple periods tend to carry lower risk than those with volatile or uneven earnings profiles.
Valuation ratios like P/E. EPS should always be assessed alongside valuation to avoid overpaying for earnings that may already be fully reflected in the stock price.
In practice, a “good” EPS is less about the absolute number and more about the trajectory, stability, and relative strength of a company’s earnings.
Below, we examine and rank the best EPS stocks using historical results, projected earnings growth, and a combination of Zacks Rank signals and core fundamental measures to identify companies that may offer durable, long-term opportunities for patient investors.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
Five Below operates value-focused stores selling trend-led merchandise to teens, families and other budget-conscious shoppers. Fiscal Q1'26 results confirmed a sharp recovery, but the larger attraction is the runway from store expansion, better merchandising discipline and a more flexible price architecture. Management’s higher 2026 outlook suggests recent comparable-sales momentum can translate into sustained EPS leverage as inventory productivity and fixed-cost absorption improve.
Potential Risks
Tariffs, freight inflation and volatile discretionary demand could compress margins. Rapid openings also raise execution, cannibalization and fashion-miss risks.
Forecast
A Zacks Rank #1 (Strong Buy) indicates positive estimate revisions, while Style Scores of A for Growth and B for Momentum support the earnings case; Value C signals a less obvious bargain. The Price, Consensus & EPS Surprise chart shows 2026-2028 consensus EPS rising steeply alongside the share-price recovery. Recent surprises are predominantly positive, implying further estimate upside if traffic remains firm.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
Neurocrine develops therapies for neurological, endocrine and psychiatric disorders. First-quarter 2026 product growth highlighted INGREZZA’s durability and CRENESSITY’s early traction, but the forward case rests on expanding treatment penetration, broader commercial reach and a pipeline that can reduce reliance on one franchise. The Soleno acquisition added a complementary rare-disease asset and supports EPS growth beyond 2026.
Potential Risks
Neurocrine remains heavily dependent on INGREZZA, leaving earnings sensitive to slower prescription growth, competitive therapies, payer restrictions and pricing pressure. Clinical failures or regulatory delays across the pipeline would also reduce the company’s longer-term growth options.
Forecast
A Zacks Rank #1 points to favorable revisions, with B for Growth and Momentum indicating balanced fundamentals; Value C is neutral. Across 2026-2028, the chart shows EPS consensus moving higher after earlier resets, while the stock approaches prior highs. Surprise history is mixed, but the latest beat improves the revision outlook.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
State Street provides custody, asset-management, trading and technology services to institutional investors. Second-quarter 2026 results showed strong fee growth and operating leverage, yet the durable opportunity comes from record asset levels, new servicing mandates, ETF demand and technology-led productivity. Those drivers can support EPS if markets remain constructive and expense discipline offsets strategic investment.
Potential Risks
A market correction, client outflows or lower activity would pressure asset-based and trading fees. Rate cuts could reduce net interest income, while cyber, operational, regulatory and technology risks remain material.
Forecast
A Zacks Rank #1 signals upward estimate revisions, and Momentum A confirms strong price action. However, F for Value and Growth caution that expectations are demanding. The chart shows 2026-2028 consensus EPS stepping higher as price momentum accelerates. Mostly positive recent surprises support the trend but leave limited tolerance for execution misses.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
Celestica designs and manufactures data-center hardware and advanced technology solutions. First-quarter 2026 growth confirmed AI infrastructure demand, but the forward thesis centers on hyperscaler programs, higher-value networking platforms and capacity expansion that can extend EPS momentum. Management’s raised outlook and stronger 2027 visibility suggest wins are becoming a multiyear earnings pipeline rather than a temporary spike.
Potential Risks
Customer concentration, cloud capital-spending swings and component shortages could disrupt growth. Rapid capacity additions may pressure execution and working capital, while tariffs, currency shifts and leadership changes add uncertainty.
Forecast
A Zacks Rank #2 (Buy) indicates a favorable outlook. Growth A emphasizes earnings quality, Momentum B remains supportive and Value C is neutral. The chart shows 2026-2028 consensus EPS rising sharply with the share price. Despite the recent miss, the longer surprise pattern is predominantly positive, suggesting revisions can continue if AI demand converts cleanly into profits.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
Dexcom develops continuous glucose-monitoring systems for people with diabetes. First-quarter 2026 results showed healthier margins and demand, while the forward opportunity comes from CGM adoption for non-insulin users, the G7 15 Day rollout, Stelo expansion and international penetration. These drivers could sustain double-digit growth and stronger EPS as manufacturing efficiency and scale improve.
Potential Risks
Competition, reimbursement changes and pricing pressure could slow adoption. Product-quality issues, recalls, regulatory setbacks or manufacturing disruptions would damage trust and raise costs, while slower U.S. customer additions could offset international strength.
Forecast
A Zacks Rank #2 supports a positive earnings outlook. Growth A reinforces the EPS case, Value C is neutral, but Momentum D flags weak price action. The chart shows 2026-2028 consensus EPS trending upward despite a lagging share price. The latest beat helps, but sustained surprises and estimate increases are needed for a durable rerating.
The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and earnings-per-share (EPS) surprises to classify stocks into five groups: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell) and #5 (Strong Sell). The Zacks Rank is calculated through four primary factors related to earnings estimates: analysts' consensus on earnings estimate revisions, the magnitude of revision change, the upside potential and estimate surprise (or the degree in which earnings per share deviated from the previous quarter).
Zacks builds the data from 3,000 analysts at over 150 different brokerage firms. The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +23.94% per year from January 1, 1988, through July 6, 2026.
Selections for Best EPS Stocks are based on historical performance for earnings per share, as well as forecasted EPS performance, along with the current top ranking stocks based on Zacks Indicator Score, Style Scores and fundamentals. All stocks have a daily trading volume of at least 100,000 shares and have a stock price of at least $5. All information is current as of market open, July 24, 2026.
Guide to Best EPS Stocks
What does EPS mean in stocks?
EPS (earnings per share) measures a company’s net income divided by its total outstanding shares. It shows how much profit is attributed to each share of stock.
EPS is a core indicator of profitability and is often used by analysts to compare companies within the same sector.
Why invest in high EPS stocks
Strong EPS often signals efficient management and profitability.
Companies with rising EPS tend to attract institutional investors.
High earnings can support stock price appreciation over time.
What is considered a high EPS?
A high EPS depends on context, but generally:
Large-cap companies with double-digit EPS growth are attractive.
Stocks with consistently rising EPS over multiple quarters stand out.
A high EPS relative to competitors is often more meaningful than the raw number.
Pros of investing in high EPS stocks
Strong profitability: High EPS reflects solid earnings performance.
Potential for capital gains: Earnings growth often drives stock prices higher.
Dividend potential: Profitable companies may return cash to shareholders.
Market confidence: High EPS companies often attract institutional support.
Cons of investing in high EPS stocks
Overvaluation risk: High EPS stocks can trade at premium prices.
Earnings volatility: EPS can fluctuate due to economic cycles.
Accounting distortions: One-time gains can inflate EPS.
Sector bias: Some industries naturally have higher EPS than others.
How to choose the high EPS Stocks
When screening for top EPS stocks, consider:
Consistent earnings growth over multiple quarters or years.
Many investors also look for companies included in major growth lists or earnings gainers with strong forward guidance.
How to invest in high EPS stocks
To invest effectively:
Use stock screeners to identify companies with top EPS and growth rates.
Compare companies within the same industry.
Evaluate valuation metrics like P/E ratio.
Diversify across sectors to reduce risk.
Monitor quarterly earnings reports for changes.
What other metrics should I consider besides EPS?
EPS should never be used in isolation. Combine it with:
P/E ratio (valuation relative to earnings).
Revenue growth.
Return on equity (ROE).
Free cash flow.
Debt-to-equity ratio.
These metrics provide a fuller picture of financial health.
Tips for Building a High EPS Portfolio
Focus on quality over quantity—strong, consistent earners.
Blend growth stocks and stable blue chips.
Avoid chasing stocks with sudden EPS spikes.
Rebalance regularly based on earnings performance.
Keep a long-term perspective rather than reacting to short-term fluctuations.
Frequently Asked Questions About EPS Stocks
What is an EPS Trap?
An EPS trap occurs when a stock appears attractive due to high earnings, but the growth is unsustainable. This can happen due to:
One-time gains (asset sales, tax benefits)
Cost-cutting rather than real growth
Declining revenue masked by accounting adjustments
Can EPS be manipulated or misleading?
Yes. EPS can be influenced by:
Share buybacks (reducing share count boosts EPS)
Accounting adjustments
Non-recurring income
That’s why investors should always look at adjusted EPS and underlying fundamentals.
Do high EPS stocks pay better dividends?
Not always, but often:
Companies with strong earnings are more capable of paying dividends.
Some high-growth companies reinvest earnings instead of paying dividends.
Dividend yield depends on company strategy, not just EPS.
What’s the difference between the EPS and PE ratio?
EPS measures profitability per share
P/E ratio measures how much investors are willing to pay for that earnings
In simple terms:
EPS = earnings strength
P/E = valuation of those earnings
Both are essential for identifying the best EPS stocks to buy.
Bottom line: High EPS stocks can be powerful additions to a portfolio—but the best opportunities come from companies with consistent earnings growth, reasonable valuations, and strong fundamentals, not just the highest headline numbers.
View the Zacks #1 Rank List
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