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 five satellite or cable stocks rank via earnings trends:
DIRECTV (NASDAQ:DTV): Current Price $49.09
|Revenue ($) in millions||19,690||21,560||24,100||27,230||29,740|
|Diluted EPS ($)||1.37||0.95||2.30||3.47||4.58|
We see strong growth momentum in earnings and revenue at DirecTV in 2010 and thereafter.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sep. 30, 2012||Dec. 31, 2012|
|Revenue ($) in millions||7,463||7,046||7,224||7,416||8,054|
|Diluted EPS ($)||1.01||1.07||1.09||0.90||1.55|
The growth story continues in the quarterly numbers, except for a momentary dip in September 2012. But DirecTV is certainly an eligible contender…