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 3 drug store stocks rank via earnings trends:
Rite Aid Corp. (NYSE:RAD): Current Price $1.57
|Revenue ($) in millions||24,330||26,290||25,670||25,210||26,120|
|Diluted EPS ($)||-1.54||-3.49||-0.59||-0.64||-0.43|
We note that sales have grown sluggishly at Rite Aid, and loss per share has narrowed a bit in 2012.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Nov. 30, 2011||Feb. 29, 2012||May. 31, 2012||Aug. 31, 2012||Nov. 30, 2012|
|Revenue ($) in millions||6,313||7,147||6,468||6,231||6,238|
|Diluted EPS ($)||-0.06||-0.19||-0.03||-0.05||0.07|
Quarterly sales are flat, but finally, Rite Aid has produced a positive quarterly EPS in the latest quarter. We keep this company on our watch-list…