Which Mega Engineering 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’).

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Here’s your Cheat Sheet to how the top 5 engineering stocks rank via earnings trends:

KBR, Inc. (NYSE:KBR): Current Price $30.57

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 11,580 12,100 10,100 9,261 7,921
Diluted EPS ($) 1.90 1.79 2.07 3.16 0.97

2012 seems to have been a very disappointing year for KBR, as both revenue and EPS hit a wall.

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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 ($) in millions 2,096 2,001 2,062 1,992 1,866
Diluted EPS ($) 0.60 0.61 0.70 -0.55 0.21

Though revenue has fallen off during the last two quarters, EPS took a sharp jump in December 2012. We’ll keep this company on the list for now…