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 department store stocks rank via earnings trends:
Dillard’s Inc. (NYSE:DDS): Current Price $79.99
| Fiscal Year | 2009 | 2010 | 2011 | 2012 | 2013 |
| Revenue ($) in millions | 6,988 | 6,227 | 6,254 | 6,400 | 6,752 |
| Diluted EPS ($) | -3.25 | 0.93 | 2.67 | 8.52 | 6.40 |
Dillard’s showed a strong uptrend in EPS growth up to 2012, though we’re concerned that 2013 has shown a dip.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
| Quarter | Jan. 31, 2012 | Apr. 30, 2012 | Jul. 31, 2012 | Oct. 31, 2012 | Jan. 31, 2013 |
| Revenue ($) in millions | 2,007 | 1,583 | 1,525 | 1,486 | 2,157 |
| Diluted EPS ($) | 2.58 | 1.89 | 0.63 | 1.01 | 2.87 |
But we’re mighty impressed that Dillard’s set an earnings record for itself in the latest quarter, and therefore keep it on our watch list…
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