Which Top Furniture Stocks have the Strongest Earnings Trends After Williams-Sonoma’s Release?

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 4 furniture stocks rank via earnings trends:

Bed Bath & Beyond, Inc. (NASDAQ:BBBY): Current Price $64.31

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 7,049 7,208 7,829 8,759 9,500
Diluted EPS ($) 2.10 1.64 2.30 3.07 4.06

We are impressed with the excellent growth every year in turnover at BBY; except for a down year in 2009, EPS has also shown solid jumps every year. A worthy candidate…

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Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Nov. 30, 2011 Feb. 29, 2012 May. 31, 2012 Aug. 31, 2012 Nov. 30, 2012
Revenue ($) in millions 2,344 2,732 2,218 2,593 2,702
Diluted EPS ($) 0.95 1.46 0.89 0.98 1.03

After a disappointing performance in the May 2012 quarter, this retailer has rebounded with a sharp rise in turnover and EPS thereafter. We will keep it in the reckoning…