We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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 H World Group.
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 an industrial company that makes specialized tools and components for the manufacturing and infrastructure sectors. The company has improved profitability through better pricing and restructuring efforts. This ability to expand margins shows strong operating leverage. With continued efficiency measures and pricing discipline, Kennametal is well-positioned to deliver steady and resilient EPS growth.
Potential Risks
Its performance depends on industrial activity, so weaker demand can impact volumes. Volatile raw material costs, tariffs and challenges in executing cost-saving plans could pressure margins and limit EPS growth.
Forecast
A Zacks Rank #1 (Strong Buy) with Style Scores of C for Value and Growth, but a B for Momentum signals supportive revisions and price action. The Price, Consensus & EPS Surprise chart shows 2026–2027 EPS estimates bending higher after a 2025 dip, with a mixed but lately better surprise cadence that could invite further upward revisions.
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 leading telecom operator in Brazil with strong mobile and fiber leadership. Growth is driven by expanding postpaid and fiber-to-the-home (FTTH) bases, improving average revenue per user, and low churn, reflecting strong customer loyalty. Disciplined capital allocation and rising operating cash flow highlight efficient execution, while diversified digital and B2B services support a resilient model, enhancing earnings visibility.
Potential Risks
Competitive intensity and market fragmentation may pressure pricing, while continued infrastructure expansion and cost dynamics could weigh on margins and cash flow stability over time.
Forecast
A Zacks Rank #1 with C for Value and Growth but D Momentum suggests revisions are favorable even if price action is uneven. The chart shows 2026–2027 EPS forecasts higher versus prior years, with a stop-start surprise pattern and recent estimate hesitation, so clean execution is needed to keep upgrades coming.
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 leader in subsea and surface technologies for the energy industry. The company delivered a strong 2025 performance, with revenue rising to $9.9 billion and adjusted EBITDA jumping 33% to $1.8 billion, reflecting margin expansion. A robust $16.6 billion backlog and $11.2 billion inbound orders highlight sustained demand, while improved cash flow and shareholder returns reinforce earnings growth visibility.
Potential Risks
Results remain sensitive to oil price volatility and offshore activity cycles. Project delays, regulatory hurdles, or supply disruptions could affect margins and execution, while macro and geopolitical risks persist.
Forecast
A Zacks Rank #1 with a B Growth score, but D for Value and Momentum suggests revisions favor profit growth, though valuation support and near-term trend are weaker. The chart shows 2025–2027 EPS consensus stair-stepping higher with a long run of beats, keeping the door open for further upward revisions if delivery stays on track.
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.
Futu Holdings runs an easy-to-use online platform for investing in stocks and managing money across global markets. The business is growing fast, with strong gains in revenue and profits, helped by rising user accounts and higher client assets. More users trading and investing on the platform is boosting earnings, while improving margins show the company is becoming more efficient and profitable over time.
Potential Risks
The business depends on market activity, so weak stock markets, changing regulations, or strong competition could slow growth and put pressure on profits.
Forecast
A Zacks Rank #1 is constructive, but the Style Scores of F for Value, C for Growth and D for Momentum flag richer valuation and a choppy trend. The chart shows 2026–2027 EPS consensus pushing higher with more beats than misses recently, yet estimate and price volatility suggest continued user growth is essential to keep revisions moving up.
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 is a leading hotel operator with a vast and expanding network across China and globally. The company delivered solid growth in 2025, with revenue rising 5.9% and adjusted EBITDA increasing 24.2%, reflecting strong operating leverage. Its asset-light model is gaining traction, as manachised and franchised revenue climbed over 23%, boosting margins and supporting sustained earnings growth.
Potential Risks
Same-hotel revenue per available room declined about 2.5% year over year, with occupancy also falling, indicating demand softness. Ongoing network expansion and restructuring may create execution risks and earnings volatility.
Forecast
A Zacks Rank #1 with an A Growth score, C for Value, but D Momentum score suggests strong revision trends despite uneven price action. The chart shows 2026–2027 EPS estimates moving higher with a mixed surprise pattern, so stable RevPAR and franchise momentum are needed to keep upgrades coming.
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, April 10, 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
Buy 
Strong Buy 
