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Friday, 05/22/2015 2:08:50 PM

Friday, May 22, 2015 2:08:50 PM

Post# of 29204
Companies With High EPS Growth – Capstone Turbine (NASDAQ:CPST),

Growth in earnings per share is everything. The expected future growth in earnings per share (“EPS”) is an incredibly important factor .in identifying an under-valued stock. The impact of earnings growth is exponential. Over the long run, the price of a stock will generally go up in lock step with its earnings (assuming the P/E ratio is constant). Therefore stocks with higher earnings growth should offer the highest capital gains. And doubling the growth more than doubles the capital gain, due to the compounding effect.

Given the importance of identifying companies that will grow earnings per share at high rate, we then need to consider how to identify which companies will achieve high growth rates. One obvious way to identify high earnings per share growth companies is to find companies that have demonstrated such growth over the past 5 to 10 years. We can’t assume the past will always reflect the future, but logically stocks that have grown earnings per share strongly in the past are a good bet to continue to do so.

Capstone Turbine Corporation (NASDAQ:CPST) was trading -67.90% below its 52-week high and 1.98% above its 52-week low. Its last 5-Year EPS growth stands at 27.50% with earnings decline of -29.72% yoy. The stock has a 1-year performance down -62.58% and a negative weekly performance at -5.44%. The company is set at a mean analysts’ recommendation of 2.00.

http://www.wsobserver.com/companies-with-high-eps-growth-capstone-turbine-nasdaqcpst-yandex-nasdaqyndx-aeterna-zentaris-nasdaqaezs/7215597/

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