Earnings trends are extremely important when evaluating stocks. At Wall St. Cheat Sheet, we view increasing earnings quarter-over-quarter as a simple way to gauge whether costs and the business model are stable. Then we like to analyze whether the company is outperforming peers in the sector. This is what we call the “E-Squared” investment analysis (‘E = Earnings Are Increasing Quarter-Over-Quarter’ + ‘E = Excellent Relative Performance Versus Peers and Sector’).
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Here’s your Cheat Sheet to how the top 5 agriculture stocks rank via earnings trends:
Deere & Co. (NYSE:DE): Current Price $90.54
|Revenue ($) in millions||28,440||23,110||26,000||32,010||36,160|
|Diluted EPS ($)||4.70||2.06||4.35||6.63||7.63|
We see that Deere sharply grew both revenue and EPS between 2009 and 2012.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Jan. 31, 2012||Apr. 30, 2012||Jul. 31, 2012||Oct. 31, 2012||Jan. 31, 2013|
|Revenue ($) in millions||6,766||10,010||9,590||9,792||7,421|
|Diluted EPS ($)||1.30||2.61||1.98||1.74||1.65|
Unfortunately, we see that both quarterly revenue and EPS have turned south after April 2012, and we must drop Deere from the reckoning…