Which Top 5 Luxury Retail Stocks Have the Strongest Earnings Trends?

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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 five luxury retail stocks rank via earnings trends:

Nordstrom Inc. (NYSE:JWN): Current Price $53.99

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 8,573 8,627 9,700 10,880 12,150
Diluted EPS ($) 1.83 2.01 2.75 3.14 3.56

We are impressed with the solid growth at this lux retailer. The topline has grown over 41% after 2009, while EPS has almost doubled…

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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 ($) in millions 3,266 2,629 3,009 2,808 3,702
Diluted EPS ($) 1.10 0.70 0.75 0.71 1.40

Nordstrom certainly had a stellar quarter in January 2013: revenue grew 32% compared to the previous quarter while EPS doubled. Certainly a candidate to watch in this analysis…

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