Which Semiconductor 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’).

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 semiconductor stocks rank via earnings trends:

Intel (NASDAQ:INTC): Current Price $21.25

Fiscal Year 2007 2008 2009 2010 2011
Revenue ($) in millions 38,330 37,590 35,130 43,620 54,000
Diluted EPS ($) 1.18 0.92 0.77 2.01 2.39

We’re impressed with Intel’s performance post-2009, as both revenue and earnings per share have moved up substantially.

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Sep. 30, 2011 Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012
Revenue ($) in millions 14,230 13,890 12,910 13,500 13,460
Diluted EPS ($) 0.65 0.64 0.53 0.54 0.58

Encouragingly, Intel has also reported three quarters of rising EPS. Here’s a company to be kept on the watch list.