Which of These Top 5 Entertainment Stocks have the Strongest Earnings Trends: Disney, CBS, Viacom, Comcast or News Corp?

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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 entertainment stocks rank via earnings trends:

Walt Disney Co. (NYSE:DIS): Current Price $54.66

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 37,840 36,150 38,060 40,890 42,280
Diluted EPS ($) 2.28 1.76 2.03 2.52 3.13

We see excellent growth from both the revenue and EPS numbers. These successes are have been boosted by highly successful acquisitions.

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 ($) in millions 10,780 9,629 11,090 10,780 11,340
Diluted EPS ($) 0.80 0.63 1.02 0.68 0.77

Despite the small blip in the quarterly numbers in September 2012, Disney bounced back with far better results in the December 2012 quarter. We’ll keep the company on our list as it has increased earnings quarter-over-quarter…

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