Which Conglomerate Stocks Have the Strongest Earnings Trends?

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 conglomerate stocks rank via earnings trends:

General Electric Co. (NYSE:GE): Current Price $22.04

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 181,580 154,440 149,590 147,300 147,360
Diluted EPS ($) 1.72 1.01 1.06 1.23 1.29

Sales at GE have fallen every year until 2011 and are flat in 2012. But the company is still working on improving profitability – its earnings have improved every year through the last four years. Interesting…

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 ($) in millions 37,980 35,180 36,500 36,350 39,330
Diluted EPS ($) 0.35 0.29 0.29 0.33 0.38

We find the same trend of a rising EPS during both the last two quarters. A stock to keep on our watch list…