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Charts courtesy of stockcharts.com

Sunday, October 31, 2010

Earnings Growth Charts

There were 20 stocks on the earnings list reporting last week, and I managed to get 19 of them graphed (TYL has insufficient data for a decent graph), so I went through them this morning and picked 6 of the most interesting. I will try to get the others posted when the earnings onslaught slows down later next month. My goal is to have complete data and graphs on the entire list before the end of the year, and at this rate it looks like a definite possibility.  On the graphs, in the top panel the black line is revenue growth rate, red EPS growth rate (charts without a black line are stocks that I do not have quarterly revenue data for). In the middle panel, black is price, red quarterly EPS, and blue price relative to SPX. At the bottom the black bars are volume.



 First up is ALGT, which has followed earnings pretty closely. Notice that revenue growth is rising, which usually precedes earnings growth.


 AMED is one that I don't have revenue data for, but you can see that EPS has been dropping. Price, however, has crashed. It looks like the market has little faith that this can turn around any time soon, and it will have a hard time making the next cut.



 CPLA is one of the for profit school stocks that have been under pressure due to governmental investigations (from what I have read, for good reason. Some of these companies have some questionable business practices). Earnings and revenue growth have been dropping, and price along with it. It might turn around when the heat is off, assuming they don't end up in handcuffs, but at this point I would not take that bet.



 DECK is one of the leadership stocks, and it broke out to a new all time high this week. Earnings and revenue growth have been dropping, but apparently the market expects that to turn around.


NEU has followed EPS to near perfection. Revenue growth has slowed, and EPS growth is at the moment non-existent, but I don't expect that to last long, and apparently neither does the market.

TIS has also followed EPS pretty closely, and EPS has fallen off a cliff. Unfortunately I do not have revenue data on this, otherwise we could anticipate a reversal in EPS growth, which usually follows revenue growth.
 still like this one, but if EPS doesn't turn around damn soon, this is going to have a hard time stayng on the list.

I am still working on a wayy to incorporate annual EPS and revenue into the chart, but at this point that is a low priority project, as it sure appears to me that, on my trading timeframe, quarterly EPS is much more important. Annual growth rates are good for narrowing down the number of stocks to watch.

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