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 these top 5 chip stocks rank via earnings trends:
NVIDIA (NASDAQ:NVDA): Current Price $12.71
|Revenue ($) in millions||3,425||3,326||3,543||3,998||4,280|
|Diluted EPS ($)||-0.05||-0.12||0.43||0.94||0.19|
Nvidia swung impressively back into the black after the loss in 2010, but could not maintain the momentum into 2013. EPS declined sharply in the latest year…
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Jan. 31, 2012||Apr. 30, 2012||Jul. 31, 2012||Oct. 31, 2012||Jan. 31, 2013|
|Revenue ($) in millions||953.19||924.88||1,044||1,204||1,107|
|Diluted EPS ($)||0.18||0.10||0.19||0.33||0.28|
Unfortunately, EPS also took a hit in the latest quarter, and we therefore drop this company from our list…