Independent Stock Analysts Estimate the EPS Will Grow More than 20% Annually in the Next Three to Five Years

Selecting stocks based on great historical EPS performance will greatly limit the field of possible candidates. The companies that made this cut maintained excellent management teams in the past.

Since management drives EPS which in turn drives stock price, who can answer the million-dollar question, “Will the management team continue to drive EPS growth in the future?”

You can try to answer this question yourself or you can consult an independent stock analyst such as Value Line Investment Survey. Invest in companies that are expected to grow EPS at least 20% in the next three to five years. Do not place much credence in free EPS estimates. Free EPS growth estimates should not be taken seriously. Access Value Line at the library for free or pay an independent analyst for their EPS estimates. Remember, nothing drives stock price more than EPS.