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If the company had previous loss, it can take benefit of that while having profit and show great accelerated earnings. So, we will not know whether company has low tax rate by just looking at the Earnings growth percentage. I guess in the EPS rating IBD includes the income tax rate of the company. I have been watching this stock CYTC for a while. Just in the last quarter the EPS rating reached 80. (This is after showing great earnings growth for the last 7 quarters but they had low tax rate. In fact, the revenue growth is slowing.) So, we have to look both earnings growth and IBD EPS rating to get the better picture.

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