EPS Diplomats Model
This model targets profitable large capitalization companies proven to produce above-average EPS growth and provide investors with the benefit of multiple expansion.
Strategy Rationale
This model offers exposure to a basket of companies with the fastest rate of earnings growth among a peer group of liquid, large-cap stocks.
Earnings growth is often seen as a signal of a company’s competitive strength, operational efficiencies, and future growth potential.
Shares of companies that provide historically consistent earnings growth faster than the stock market receive premium valuations compared to those awarded to the S&P 500.
Multiple expansion paired with earnings growth tends to drive outperformance relative to the market, better known as alpha.
Disclaimer: Tematica’s research is intended for educational and informational use. Tematica Research is not an SEC or state-registered investment adviser (RIA) nor is it a financial advisor. Tematica Research publishes its own financial research spreadsheets and information on its website. Historical returns are hypothetical and have been compiled using observed transactional price data No actual money is invested, nor are any trades executed. Tematica Research’s research is protected by all applicable U.S. and international copyright laws.