What is the Earnings Growth Rate (EGR)?

13 April 2023
EGR stands for Earnings Growth Ranking. Each week, we compile the most recent five quarters of reported earnings for each stock in our database. Then, for each stock, we calculate the ratio between the total earnings for the latest four quarters to the total earnings for the earliest four quarters. In this way, three quarters are overlapped, and the seasonal tendency of many quarterly reportings is eliminated. The ratio for each stock is then ranked against all other stocks in our database on a percentage basis on a scale of zero to 99. Those stocks with the highest earnings growth receive a 99 ranking, and stocks with the lowest earnings growth, or negative growth, receive a zero ranking.