Which Consumer Staple Stock Has the Strongest Earnings Trends: Procter & Gamble, Kimberly-Clark or Colgate-Palmolive?
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’).
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Here’s your Cheat Sheet to how the top 3 consumer staple stocks rank via earnings trends:
Procter & Gamble Co. (NYSE:PG): Current Price $75
|Revenue ($) in millions||79,260||76,690||77,570||81,100||83,680|
|Diluted EPS ($)||3.64||4.26||4.11||3.93||3.66|
Procter & Gamble has shown a rising revenue trend after 2009. Unfortunately, EPS is quite another story, falling off every year for the last four years.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sep. 30, 2012||Dec. 31, 2012|
|Revenue ($) in millions||21,740||20,190||20,210||20,740||22,180|
|Diluted EPS ($)||0.57||0.82||1.24||0.96||1.39|
Quarterly revenue numbers are all over the place, though EPS climbed nicely between December 2011 and June 2012. Profits took a hit in the latest September, but earnings are now increasing quarter-over-quarter…