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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 Kennametal Inc., TechnipFMC and Construction Partners.
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.
Kennametal is a global industrial tooling supplier serving diverse end markets. Strong pricing, tariff surcharges and restructuring savings drove margin expansion and lifted adjusted EPS to 47 cents, nearly doubling year over year, on $530 million sales and 10% organic growth, positioning it as an EPS-driven story with consistent execution and improving profitability momentum.
Potential Risks
Results remain exposed to cyclical industrial demand, with volatility across end markets and foreign exchange potentially affecting volumes, while inflation and raw material costs could pressure margins.
Forecast
With a Zacks Rank #1 (Strong Buy), a B Value Score, and Style Scores of C for Growth and Momentum, the signal is revisions-led upside without a premium momentum profile. The chart shows 2026–2027 EPS consensus turning up sharply after a downdraft, and the latest quarter marked a notable beat, conditions that typically keep forward estimates moving higher if demand improves.
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.
TechnipFMC is a global subsea engineering and offshore services provider delivering strong earnings growth and cash generation. In 2025, revenue rose 9% to $9.9 billion and adjusted EBITDA jumped 33% to $1.8 billion, while backlog reached $16.6 billion. Robust inbound orders, rising margins and increased guidance support sustained EPS expansion and visibility long-term.
Potential Risks
Performance depends on project timing and awards, while supply chain issues can delay execution. Lower oil prices or spending cuts could weaken orders, backlog conversion and margins.
Forecast
A Zacks Rank #1 pairs with a B Growth Score, but a Value Score of D and a Momentum Score of F, suggesting fundamentals and earnings revisions are leading more than cheap valuation support or strong trend-following demand. The chart shows 2025–2027 EPS consensus stair-stepping higher with a long run of recent beats, consistent with upward revisions if inbound stays 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.
Telefônica Brasil is a major telecom provider in Brazil with a broad mobile and fiber platform. The company delivered growth above inflation across key lines, with fourth quarter revenue rising 7.1% and EBITDA up 8.1%, supported by postpaid expansion, fiber penetration and higher ARPU, alongside disciplined cost control and strong cash flow generation reinforcing consistent profitability.
Potential Risks
Risks include intense market competition, fragmented fiber industry dynamics and potential pricing pressures, while continued investment needs and evolving customer demand could impact growth consistency and operating performance over time.
Forecast
With a Zacks Rank #1, a B Value Score and Style Scores of C for Growth and Momentum, revisions look supportive but not momentum-driven. The chart shows 2025–2026 EPS consensus drifting lower before stabilizing, while recent surprises skew positive, suggesting estimates may be starting to turn if profitability momentum persists.
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.
Construction Partners is a vertically integrated civil infrastructure company focused on roadway construction and maintenance across the Sunbelt. Strong first-quarter fiscal 2026 results, including 44% revenue growth, nearly doubling adjusted earnings and record backlog, highlight accelerating operating leverage, supporting sustained EPS expansion and reinforcing its appeal as a high-quality earnings compounder with improving margins and raised full-year outlook.
Potential Risks
Performance may face pressure from acquisition integration challenges, funding variability in public infrastructure spending, competitive bidding environments, cost inflation, labor constraints, and execution risks tied to a growing project backlog.
Forecast
A Zacks Rank #1 with an A for Momentum but Style Scores of D for Value and C for Growth points to a strong trend and revisions rather than cheapness. The chart shows 2025–2027 EPS consensus stepping higher with frequent beats, supporting further estimate lift if execution stays steady.
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.
H World Group Limited is a leading hotel operator with a rapidly expanding network and strong scale. In 2025, rooms in operation grew 16.2% and Gross Merchandise Value rose 16.4%, while asset-light manachised and franchised revenue climbed 23.1%, supporting 24.2% adjusted EBITDA growth and higher profit mix, reinforcing its EPS growth profile and improving member-driven demand with bookings up 21.5%.
Potential Risks
Performance is tied to lodging demand, competition and economic conditions, while geopolitical tensions and regulatory changes may impact operations and financial performance.
Forecast
Hitting a Zacks Rank #1 with Style Scores of A for Growth and Momentum and a Value Score of B signals broad-based estimate strength and positive price action. The chart shows 2026–2027 EPS consensus rebounding after earlier softness, with surprises recently mixed but improving, suggesting revisions could keep trending higher if RevPAR and franchise growth hold.
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 +23.62% per year from January, 1988, through June 2, 2025.
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, March 27, 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
Strong Buy 
