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 clothing retailer stocks rank via earnings trends:
Abercrombie & Fitch Co. (NYSE:ANF): Current Price $46.86
|Revenue ($) in millions||3,700||3,484||2,929||3,469||4,158|
|Diluted EPS ($)||5.20||3.05||0.00||1.67||1.43|
After a dismal year in 2010, Abercrombie and Fitch bounced back with much better sales and EPS in 2011 and 2012.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Oct. 31, 2011||Jan. 31, 2012||Apr. 30, 2012||Jul. 31, 2012||Oct. 31, 2012|
|Revenue ($) in millions||1,076||1,329||921.22||951.41||1,170|
|Diluted EPS ($)||0.57||0.23||0.03||0.19||0.87|
We see the same pattern in the quarterly reports, and both topline and EPS headed for the moon after the April 2012 quarter. This company is in the running for winning this analysis…