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 for-profit education stocks rank via earnings trends:
Career Education Corp. (NASDAQ:CECO): Current Price $3.00
|Revenue ($) in millions||1,651||1,802||2,089||1,885||1,489|
|Diluted EPS ($)||0.67||0.94||1.95||0.25||-2.15|
Revenue and EPS have plummeted at Career Education during the last two years.\
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sep. 30, 2012||Dec. 31, 2012|
|Revenue ($) in millions||439.52||434.14||368.97||332.76||354.69|
|Diluted EPS ($)||-1.57||0.78||-1.52||-0.50||-0.93|
We drop this company right away because of the losses per share during the last three quarters…