MakeMyTrip Limited reported adjusted EPS loss of $0.17 per share. By that measure, the company missed the mean analyst estimate of $0. It beat the average revenue estimate of $0.

Toll Brothers Inc. (NYSE:TOL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. Adjusted Earnings Per Share increased 40% to $0.14 in the quarter versus EPS of $0.10 in the year-earlier quarter. Revenue Rose 38.09% to $516 million from the year-earlier quarter.

Toll Brothers Inc. reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.07. It beat the average revenue estimate of $511.06 million.

American Eagle Outfitters, Inc. (NYSE:AEO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. Adjusted Earnings Per Share decreased 18.18% to $0.18 in the quarter versus EPS of $0.22 in the year-earlier quarter. Revenue Decreased 5.51% to $679.5 million from the year-earlier quarter.

American Eagle Outfitters, Inc. reported adjusted EPS income of $0.18 per share. By that measure, the company beat the mean analyst estimate of $0.17. It beat the average revenue estimate of $678.41 million.

Zale Corporation (NYSE:ZLC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. Adjusted Earnings Per Share increased to $0.13 in the quarter versus EPS of $-0.14 in the year-earlier quarter. Revenue Decreased 0.49% to $443 million from the year-earlier quarter.

Zale Corporation reported adjusted EPS income of $0.13 per share. By that measure, the company beat the mean analyst estimate of $-0.02. It missed the average revenue estimate of $443.83 million.

Citi Trends (NASDAQ:CTRN) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. Adjusted Earnings Per Share decreased 39.13% to $0.42 in the quarter versus EPS of $0.69 in the year-earlier quarter. Revenue Decreased 8.04% to $181.8 million from the year-earlier quarter.

Citi Trends reported adjusted EPS income of $0.42 per share. By that measure, the company missed the mean analyst estimate of $0.56. It missed the average revenue estimate of $186.63 million.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

Pinnacle Foods (NYSE:PF): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on May 14, 2013. The stock’s 52-week high is $26.48, and its 52-week low is $22.15.

Toll Brothers (NYSE:TOL): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on May 21, 2013. The stock’s 52-week high is $39.25, and its 52-week low is $23.78.

Union Pacific Corporation (NYSE:UNP): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on April 18, 2013. The stock’s 52-week high is $161.00, and its 52-week low is $105.14.

MarkWest Energy Partners (NYSE:MWE): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on May 16, 2013. The stock’s 52-week high is $71.20, and its 52-week low is $45.36.

Rentech Nitrogen Partners (NYSE:RNF): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on January 9, 2013. The stock’s 52-week high is $49.18, and its 52-week low is $21.08.

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Whole Foods Market (NASDAQ:WFM): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on May 8, 2013. The stock’s 52-week high is $101.86, and its 52-week low is $81.39.

Whirlpool Corp. (NYSE:WHR): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on April 17, 2013. The stock’s 52-week high is $131.50, and its 52-week low is $54.08.

Stanley Black & Decker (NYSE:SWK): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on February 26, 2013. The stock’s 52-week high is $82.43, and its 52-week low is $58.59.

Toll Brothers Inc. (NYSE:TOL): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on April 25, 2013. The stock’s 52-week high is $37.52, and its 52-week low is $23.78. “I think it is going to be fine (when it reports earnings),” Cramer said. “If it comes down, I want you to buy more. It is terrific.”

Tractor Supply Company (NASDAQ:TSCO): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on March 1, 2013. The stock’s 52-week high is $113.83, and its 52-week low is $75.46. “I think it goes higher,” Cramer said. “It is a great growth retailer.”

Investing Insights: Does Whole Foods Support All-Time Highs?

Toll Brothers Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 40% to $0.14 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Rose 38.09% to $516 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Toll Brothers Inc. reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.07. It beat the average revenue estimate of $511.06 million.

Quoting Management: Douglas C. Yearley, Jr., Toll Brothers’ chief executive officer, stated: “Demand accelerated significantly this quarter. Increased pricing power and stronger sales drove our agreements up 57% in dollars and 36% in units – the highest for any quarter in seven years.
“Our strong brand, land position and capital base are giving us a competitive advantage in many of our markets. Buyers who have been on the sidelines for six years are jumping in. Low interest rates, improved customer confidence, a strong stock market, rising home prices and a reawakening economy are stoking the demand that is fueling our luxury market.”

Key Stats (on next page)…

Revenue increased 21.53% from $424.6 million in the previous quarter. EPS increased 366.67% from $0.03 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.28 to a profit $0.31. For the current year, the average estimate has moved down from a profit of $0.84 to a profit of $0.74 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

C = Catalyst for the Stock’s Movement

The homebuilders are at an interesting point in time. There are many reasons to be optimistic as well as pessimistic. The biggest positives are improvements in housing starts and average-selling-price growth. The biggest negatives are tight credit, supply chain constraints, and increased costs, including softwood lumber, gypsum, tar roofing, insulation, and concrete.

Looking at Lennar specifically, this is a company that has solid margins, a 0.40 percent yield (peers don’t offer any yield), improvements in revenue and earnings, and a strengthened balance sheet. Lennar has shed an enormous amount of overhead. Currently, it’s slowing the pace of homebuilding in California, Arizona, and Florida. Lennar management wants more land to become available first. This conservative approach might hamper growth potential, but it will help margins.

The biggest concerns for Lennar at the moment are increased costs, subpar cash flow, and a lack of resiliency. In regards to the latter, the stock was hit much harder than peers in 2008/early 2009. However, Lennar is being managed much better this time around.

Now let’s take a look at some comparative numbers. The chart below compares fundamentals for Lennar, PulteGroup (NYSE:PHM), and Toll Brothers Inc. (NYSE:TOL). Lennar has a market cap of $8.06 billion, PulteGroup has a market cap of $8.53 billion, and Toll Brothers has a market cap of $5.95 billion.

The large short position on Lennar stands out. Let’s take a look at some more important numbers prior to forming an opinion on this stock.

E = Equity to Debt Ratio Is Normal         

The debt-to-equity ratio for Lennar is close to the industry average of 1.10. Though it’s not overly concerning, it’s not as strong as the debt-to-equity ratios as its peers, especially Toll Brothers. It’s interesting to note that Toll Brothers also has a much smaller short position. When interest rates increase, Toll Brothers will the best situated.

T = Technicals Are Strong  

Lennar has been a top performer over a three-year time frame. Both Lennar and PulteGroup have outperformed Toll Brothers by wide margins over the past three years. However, Toll Brothers will likely hold up best if the market heads south.  

At $42.11, Lennar is trading above all its averages.

E = Earnings Have Been Strong                              

Earnings are listed as strong due to 2012. However, it would be difficult to see sustainable earnings growth over the next few years.

When we look at the previous quarter on a year-over-year basis, we see an increase in revenue and earnings.

Now let’s take a look at the next page for the Trends and Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

T = Trends Might Support the Industry

Once again, housing starts and average-selling-price growth are positives. On the other hand, there are several economic concerns at the moment, which include weak GDP, sequester, austerity, and interest rates. The latter two are more potential concerns, but they’re likely to become realities in the future.

Conclusion

As long as rates remain low, homebuilding stocks have the potential to continue their surge. On the other hand, while there are differences between now and the mid-2000s, there are also many similarities, which is a potential red flag.

All factors considered, Lennar is a WAIT AND SEE.

Using a solid investing framework such as this can help improve your stock-picking skills. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

Disclosure: All content posted represents my opinion and views and should never be considered professional advice. You should do your own research and consult with a professional financial advisor before making any investment decisions. I do not have a position in this stock. I am currently short technology, financials, the Russell 2000, and the euro.

Exxon Mobil Corp. (NYSE:XOM): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Sell on January 25, 2013. The stock’s 52-week high is $93.67, and its 52-week low is $77.13. “I didn’t like the quarter,” Cramer said. “Go to the supermajor-to-be [EOG Resources (NYSE:EOG)] and not the supermajor that once was.”

Smith & Wesson Holding Corporation (NASDAQ:SWHC): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Buy on September 14, 2012. The stock’s 52-week high is $11.25, and its 52-week low is $6.07.

Schlumberger Limited (NYSE:SLB): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on February 26, 2013. The stock’s 52-week high is $82.00, and its 52-week low is $59.12.

Radian Group Inc. (NYSE:RDN): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on April 8, 2013. The stock’s 52-week high is $11.95, and its 52-week low is $2.00.

Toll Brothers Inc. (NYSE:TOL): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on April 16, 2013. The stock’s 52-week high is $38.36, and its 52-week low is $23.78.

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Rayonier Inc. (NYSE:RYN): Jim Cramer ranked this stock a Sell. The stock’s 52-week high is $59.99, and its 52-week low is $41.33.

SunTrust Banks, Inc. (NYSE:STI): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on March 7, 2013. The stock’s 52-week high is $30.79, and its 52-week low is $20.96.

Toll Brothers Inc. (NYSE:TOL): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on February 21, 2013. The stock’s 52-week high is $38.36, and its 52-week low is $21.78.

Thomson Reuters Corporation (NYSE:TRI): Jim Cramer ranked this stock a Buy. The stock’s 52-week high is $32.89, and its 52-week low is $26.20.

Weyerhaeuser Co. (NYSE:WY): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on January 25, 2013. The stock’s 52-week high is $31.74, and its 52-week low is $18.60.

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Vaughn Mimi Eckel who is Sr VP – Bus Dev & Shd Svcs at Genesco Inc. (NYSE:GCO), sold 15,000 shares at $59.08 per share for a total value of $886,170. The shares recently traded at $59.34, up $0.26, or 0.44% since the insider sale.

Cross Atlantic Capital Partner who is 10% Owner at Rubicon Technology, Inc. (NASDAQ:RBCN), sold 200,000 shares at $6.25 per share for a total value of $1,250,960. The shares recently traded at $6.51, up $0.26, or 4.16% since the insider sale.

Benet Jay S who is Vice Chairman and CFO at The Travelers Companies, Inc. (NYSE:TRV), sold 15,000 shares at $83.92 per share for a total value of $1,258,773. The shares recently traded at $83.36, down $0.56, or 0.67% since the insider sale.

Caldwell Donald R who is Director at Rubicon Technology, Inc. (NASDAQ:RBCN), sold 200,000 shares at $6.25 per share for a total value of $1,250,960. The shares recently traded at $6.51, up $0.26, or 4.16% since the insider sale.

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Toll Brothers Inc. reported adjusted EPS income of $0.03 per share. By that measure, the company missed the mean analyst estimate of $0.14. It missed the average revenue estimate of $569.98 million.

Sonic Automotive Inc. (NYSE:SAH) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. Adjusted Earnings Per Share increased 57.58% to $0.52 in the quarter versus EPS of $0.33 in the year-earlier quarter. Revenue rose 5.69% to $2.19 billion from the year-earlier quarter.

Sonic Automotive Inc. reported adjusted EPS income of $0.52 per share. By that measure, the company beat the mean analyst estimate of $0.42. It beat the average revenue estimate of $2.09 billion.

SodaStream International Ltd. (NASDAQ:SODA) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. Adjusted Earnings Per Share decreased 6.25% to $0.45 in the quarter versus EPS of $0.48 in the year-earlier quarter. Revenue rose 75.14% to $132.9 million from the year-earlier quarter.

SodaStream International Ltd. reported adjusted EPS income of $0.45 per share. By that measure, the company missed the mean analyst estimate of $0.63. It beat the average revenue estimate of $110.8 million.

Lumber Liquidators Holdings, Inc. (NYSE:LL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. Adjusted Earnings Per Share increased 72.41% to $0.5 in the quarter versus EPS of $0.29 in the year-earlier quarter. Revenue rose 20.75% to $210.65 million from the year-earlier quarter.

Lumber Liquidators Holdings, Inc. reported adjusted EPS income of $0.5 per share. By that measure, the company beat the mean analyst estimate of $0.42. It missed the average revenue estimate of $215.4 million.

Lithia Motors Inc. (NYSE:LAD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. Adjusted Earnings Per Share increased 23.33% to $0.74 in the quarter versus EPS of $0.60 in the year-earlier quarter. Revenue rose 27.92% to $877.4 million from the year-earlier quarter.

Lithia Motors Inc. reported adjusted EPS income of $0.74 per share. By that measure, the company beat the mean analyst estimate of $0.7. It beat the average revenue estimate of $849.7 million.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

Will  Toll Brothers Inc.’s shareholders decrease their holdings? They reported owning a total of 138.396 million shares on 12/31/2012. The shares closed at $32.33 on 12/31/2012.

Here are the ten largest positions in Toll Brothers Inc. at the end of December 31st, 2012.

FMR LLC. held 22,032,716 shares on 12/31/2012 worth $712,317,749. This brought the portfolio total to 0.13%.

Blackrock Fund Advisors held 7,564,087 shares on 12/31/2012 worth $244,546,947. This brought the portfolio total to 0.11%.

Vanguard Group Inc. held 7,008,683 shares on 12/31/2012 worth $226,590,734. This brought the portfolio total to 0.03%.

State Street Corp. held 6,701,114 shares on 12/31/2012 worth $216,647,028. This brought the portfolio total to 0.03%.

Wellington Management Co. LLP. held 4,921,967 shares on 12/31/2012 worth $159,127,202. This brought the portfolio total to 0.01%.

Bank of New York Mellon Corp. held 4,566,805 shares on 12/31/2012 worth $147,644,814. This brought the portfolio total to 0.05%.

Capital Research Global Investors held 4,225,000 shares on 12/31/2012 worth $136,594,258. This brought the portfolio total to 0.07%.

Blackrock Institutional Trust Company N.A. held 4,162,828 shares on 12/31/2012 worth $134,584,237. This brought the portfolio total to 0.03%.

Dimensional Fund Advisors L.P. held 2,636,392 shares on 12/31/2012 worth $85,234,558. This brought the portfolio total to 0.1%.

Goldman Sachs Group Inc. held 2,544,168 shares on 12/31/2012 worth $82,252,956. This brought the portfolio total to 0.03%.

Knowing which stocks have institutional support will help improve your investing skills, and teach you how to ride the waves of strong moves. In fact, “S = Support is Provided By Institutional Investors & Company Insiders” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.