How Does a Company's New Idea Aid in Stock Selection? How Economists Work

How Earnings Per Share is Important

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Earnings per share (EPS) is what drives the value of a stock. Even though cash flow and free cash flow are more instructive, the market pays attention to and reacts to earnings. The more accurately you can determine the path of a company's future earnings, the more accurately you can determine the price path of that company's stock.
Source: http://www.investopedia.com/articles/stocks/09/steady-growth-stocks.asp; http://www.thomasmith.com/; http://www.testudoinvesting.com