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 these top 5 insurance stocks rank via earnings trends:
American International Group, Inc. (NYSE:AIG): Current Price $38.45
|Revenue ($) in millions||-6,840||75,450||72,830||59,810||65,660|
|Diluted EPS ($)||-756.85||-90.48||14.98||11.01||2.04|
AIG certainly weathered the financial storm as EPS moved solidly into the black in 2010. Unfortunately, EPS has been the declining alarmingly since then.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sep. 30, 2012||Dec. 31, 2012|
|Revenue ($) in millions||12,970||18,440||17,120||17,650||12,440|
|Diluted EPS ($)||11.80||1.71||1.33||1.13||-2.13|
The last quarter in December 2012 shows a huge decline in the topline as well as EPS. We’ll keep our distance from this stock…