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 these top 4 healthcare stocks rank via earnings trends:
St. Jude Medical Inc. (NYSE:STJ): Current Price $40.88
|Revenue ($) in millions||4,363||4,681||5,165||5,612||5,503|
|Diluted EPS ($)||1.01||2.26||2.75||2.52||2.39|
St Jude’s annual revenue grew nicely until 2011, and EPS until 2010. Business seems to be slow thereafter…
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sep. 30, 2012||Dec. 31, 2012|
|Revenue ($) in millions||1,407||1,395||1,410||1,326||1,372|
|Diluted EPS ($)||0.40||0.67||0.78||0.56||0.39|
A mixed quarterly performance from St Jude’s. We note that revenue is flat, and EPS has fallen off in the last two quarters. This company does not make the grade…