Which Top Healthcare Tech Stocks Have the Strongest Earnings Trends?

February 20, 2013

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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 healthcare tech stocks rank via earnings trends:

Medtronic, Inc. (NYSE:MDT): Current Price $45.27

Fiscal Year	2008	2009	2010	2011	2012
Revenue ($) in millions	13,520	14,600	15,390	15,510	16,180
Diluted EPS ($)	1.87	1.84	2.79	2.86	3.41

We’re impressed with the steady growth in revenue and EPS every year at Medtronic.

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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 ($) in millions	3,918	4,297	4,008	4,095	4,027
Diluted EPS ($)	0.88	0.94	0.83	0.63	0.97

Quarterly revenue is flattening out, but the EPS in the latest quarter has improved sharply. Medtronic remains in our focus…

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