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 $22.04
|Revenue ($) 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…