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Sunday, January 10, 2010

Earnings Growth Charts

There were 3 of the stocks on the earnings list reporting last week, so today we'lltake a look at all 3. As usual, the black line is price, the blue line price relative to SPX, bottom red line is EPS, and the top red line is EPS growth. Volume is at the bottom. The first is CVGW, a stock which does not have a history of growing earnings, but went through a spurt of high growth last year. It has since reverted to slow but consistent growth. The price relative, while it is dropping is still higher than it was when the price hit it's peak in 2006.
It will likely remain on the list, but if it continues to slow in it's rate of growth, it will probably be replaced within a couple of quarters.

PSMT is one of the early additions to the list, before I was looking for consistent 5 year growth, and it shows here. It went through a phase of high growth after losing money for several quarters. It has since reverted to negative growth, although earnings are still positive. This is unlikely to make the next cut.

The only stock to report positive growth this quarter was SNX, which hit an all time high this year.  Growth has been pretty consistent over the last 5 years, although slowing in recent quarters, but still positive. This has made the IBD 100 in recent months, so it is already considered by them to be a leader.

I had planned over the holiday break to get these charts in a more readable shape, but other projects took precedence. I'm going to have to put this on the front burner soon, because it is really turning out to be a useful tool.

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