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 natural gas stocks rank via earnings trends:
Chesapeake Energy (NYSE:CHK): Current Price $19.61
|Revenue ($) in millions||11,630||7,702||9,366||11,640||12,320|
|Diluted EPS ($)||0.93||-9.57||2.51||2.32||-1.46|
Though revenue has grown at a nice clip at Chesapeake, EPS is too bouncy for our liking, and we are also worried about that big negative number in 2012.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sep. 30, 2012||Dec. 31, 2012|
|Revenue ($) in millions||2,728||2,419||3,389||2,970||3,539|
|Diluted EPS ($)||0.73||-0.11||1.29||-3.19||0.39|
But Chesapeake seems to have got it right in December 2012 after reporting a sharp jump in top-line and EPS. We’ll keep it on our list for now…