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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 the top 5 global industrial stocks rank via earnings trends:
Joy Global Inc. (NYSE:JOY): Current Price $63.45
|Revenue ($) in millions||3,419||3,598||3,524||4,404||5,661|
|Diluted EPS ($)||3.45||4.41||4.40||5.72||7.13|
Joy has shown excellent growth in revenue and EPS after 2008. In fact EPS has more than doubled during this period.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Jan. 31, 2012||Apr. 30, 2012||Jul. 31, 2012||Oct. 31, 2012||Jan. 31, 2013|
|Revenue ($) in millions||1,136||1,541||1,389||1,595||1,150|
|Diluted EPS ($)||1.33||2.00||1.81||1.99||1.33|
We’re worried however that the January 2013 quarter is a sharp comedown from previous quarters, and therefore exclude Joy from this analysis.
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