What is a good eps range for a stock

**Bottom line first 🏁**
There isn’t a single “magic” EPS (earnings-per-share) number that automatically makes a stock attractive. Instead, a **“good” EPS combines three things**:

1. **Positive and expanding** (y/y growth ≥ 10 – 15 %).
2. **Consistent** (low volatility across quarters; no big one-offs).
3. **Appropriately priced** (P/E ≤ sector median, or justified premium because growth is superior).

As a rule of thumb, for mature large-caps you’ll often see **annual EPS of $2 – $10**; for high-growth tech names (AI, 5G hardware, IoT platforms) even **$0.50 – $3 today can be “good”** if it’s compounding at 25 %+.

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## Why a flat EPS yard-stick doesn’t work 🔍

| Factor | Mature Industrials | Secular-growth Tech (AI / Cloud) | Early-stage IoT & 5G plays |
|--------|-------------------|----------------------------------|----------------------------|
| Typical share price | $40 – $120 | $80 – $400 | $10 – $40 |
| “Healthy” annual EPS | $3 – $8 | $0.50 – $3 | Often near break-even while scaling |
| What actually matters | Stable margins, dividend cover | EPS **growth rate** (20 %+) | Path to turning positive within 12-24 mos |

So a chipmaker in your focus list that earned **$5 EPS last year** may be fairly cheap at **15× P/E**; meanwhile an AI SaaS company with **$1 EPS** might still look attractive at **40× P/E** if analysts expect earnings to triple in three years.

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## Three quick “good EPS” checkpoints ✅

1. **Is EPS positive and rising?**
• Look for at least 3 straight profitable quarters and accelerating y/y comps.
2. **Is P/E reasonable vs. growth (PEG ≈ 1-2)?**
• A company growing EPS 30 %/yr can justify a 30-40× multiple; one growing 10 % cannot.
3. **Is EPS quality high?**
• Free cash flow ≈ net income (low accruals), no aggressive stock-based comp masking true profitability.

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## Practical screen you can run 🛠️

1. Market-cap: $10 – $200 B (liquidity sweet spot we discussed)
2. EPS last fiscal year: **≥ $1** (or positive and improving if early-stage)
3. EPS 3-yr CAGR: **≥ 15 %**
4. PEG: **≤ 2**
5. Debt/Equity: **≤ 0.5** (so earnings aren’t debt-inflated)

These filters will surface AI data-center plays, 5G component makers, and smart-city SaaS firms that pair **healthy EPS trends with room to run**. 🚀

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### Final thought 🧠

Treat EPS as **one piece of the valuation puzzle**: value its trajectory, sustainability, and relationship to price—not the absolute dollar amount. Do that, and you’ll avoid overpaying for flashy “story stocks” while still capturing the explosive upside that innovative tech can deliver. Happy hunting! 😎