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’).
Stocks with improving earnings metrics are worthy of your extra attention. Click here to discover our CHEAT SHEET stock picks now!
Here’s your Cheat Sheet to how the top 5 telecom stocks rank via earnings trends:
CenturyLink, Inc. (NYSE:CTL): Current Price $33.02
|Revenue ($) in millions||2,600||4,974||7,042||15,350||18,380|
|Diluted EPS ($)||3.52||3.23||3.13||1.07||1.25|
A raft of acquisitions helped CenturyLink grow its revenue over seven times between 2008 and 2012, though EPS is decreasing during 2011 and 2012.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sep. 30, 2012||Dec. 31, 2012|
|Revenue ($) in millions||4,653||4,610||4,612||4,571||4,583|
|Diluted EPS ($)||-0.03||0.32||0.12||0.43||0.37|
Revenue is mostly flat these past few quarters, and EPS fell off in December 2012. We’ll pass over CenturyLink for now…