Equity Clock

Top stocks with the Greatest EPS Growth in the past year

Growth appears to be the common theme with regards to earnings as of recent.   Many companies were hit hard by the economic downturn and impacts to their bottom lines were noticeable as consumers held onto their incomes for safe keeping.   With signs of improvement continuing to be noticed, market expectations for better earnings are certainly high and prospects for growth are certainly the key indicator that investors are seeking.

What has been the average EPS change over the past year?

Using data supplied by Reuters, the average EPS change over the year is –33.44% amongst the S&P 500 participants.   This ranges from an EPS decline of over 4000% to an EPS gain of over 1800%.   Many companies operated at a loss during the recession, so these numbers certainly aren’t surprising as these now profitable companies look toward future growth.   As well, not everyone is convinced that we have recovered and many financial institutions and companies impacted greater than others by economic downturns are still operating at a loss.   Notables include AIG that has had a decline of almost 1700% with regards to EPS and AK Steel Holding Corp that has seen their EPS decline by over 2000% as a result of reduced demand for the products in which they supply.

What stocks have shown the greatest gain with respect to Earnings Per Share over the past year?

• AMERIPRISE FINANCIAL (AMP) – EPS 1-Yr Growth (%): 1828.19
• Life Technologies Corporation (LIFE) – EPS 1-Yr Growth (%): 1742.46
• PROGRESSIVE CP (PGR) – EPS 1-Yr Growth (%): 1601.28
• SCRIPPS NETWORKS INT (SNI) – EPS 1-Yr Growth (%): 1068.67
• SARA LEE CP (SLE) – EPS 1-Yr Growth (%): 1003
• MASTERCARD INC (MA) – EPS 1-Yr Growth (%): 675.62
• NEWELL RUBBERMAID (NWL) – EPS 1-Yr Growth (%): 624
• CAPITAL ONE FINANCIA (COF) – EPS 1-Yr Growth (%): 613.07
• LOEWS CP (L) – EPS 1-Yr Growth (%): 442.4
• VULCAN MATERIALS HC (VMC) – EPS 1-Yr Growth (%): 414.46
• MARSH MCLENNAN CO (MMC) – EPS 1-Yr Growth (%): 396.73
• PRUDENTIAL FINCL INC (PRU) – EPS 1-Yr Growth (%): 386.93
• LILLY ELI CO (LLY) – EPS 1-Yr Growth (%): 308.19
• CMS ENERGY CP (CMS) – EPS 1-Yr Growth (%): 301.57
• SLM CORPORATION (SLM) – EPS 1-Yr Growth (%): 284.08

The common theme amongst the above is the abundance of Financial and Healthcare stocks that have shown the largest improvement over the year.   As well a link can be made for many of the others on this list that have benefitted from the economic decline, such as Rubbermaid and Sara Lee, as consumers remained conservative on their spending and resorted to lower cost alternatives to sustain themselves during this time.   Materials and Energy also round off the list, providing indication that the growth in the economy will first be noticed by the companies that supply the raw materials to make the products that the economy has been known to consume during the times with more stability than current conditions.

Disclaimer: Comments and opinions offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.