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 4 furniture stocks rank via earnings trends:
Bed Bath & Beyond, Inc. (NASDAQ:BBBY): Current Price $64.31
|Revenue ($) in millions||7,049||7,208||7,829||8,759||9,500|
|Diluted EPS ($)||2.10||1.64||2.30||3.07||4.06|
We are impressed with the excellent growth every year in turnover at BBY; except for a down year in 2009, EPS has also shown solid jumps every year. A worthy candidate…
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Nov. 30, 2011||Feb. 29, 2012||May. 31, 2012||Aug. 31, 2012||Nov. 30, 2012|
|Revenue ($) in millions||2,344||2,732||2,218||2,593||2,702|
|Diluted EPS ($)||0.95||1.46||0.89||0.98||1.03|
After a disappointing performance in the May 2012 quarter, this retailer has rebounded with a sharp rise in turnover and EPS thereafter. We will keep it in the reckoning…