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 $21.25
|Revenue ($) 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.