Ask the Fool Much Ado About EPS

Q: Are stocks with high earnings per share (EPS) better than ones with lower EPS? - S.K., Syracuse, N.Y. A: In many ways, the earnings per share amount is meaningless, by itself. Here's why. Imagine that Home Surgery Kits Inc. (ticker: OUCHH) has total net income of $10 million this year. If it has 10 million shares of stock outstanding, then its EPS is $1 (

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