Which Ag Stock has the Strongest Earnings Trends?

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 agriculture stocks rank via earnings trends:

Deere & Co. (NYSE:DE): Current Price $90.54

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 28,440 23,110 26,000 32,010 36,160
Diluted EPS ($) 4.70 2.06 4.35 6.63 7.63

We see that Deere sharply grew both revenue and EPS between 2009 and 2012.

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 ($) in millions 6,766 10,010 9,590 9,792 7,421
Diluted EPS ($) 1.30 2.61 1.98 1.74 1.65

Unfortunately, we see that both quarterly revenue and EPS have turned south after April 2012, and we must drop Deere from the reckoning…