Earnings Growth Charts

We had a ridiculous number of stocks from the earnings list reporting last week, and there was no way I could go through every chart, so I concentrated on those that looked like they had the highest and most consistent growth. I will probably get to the others in coming week's when things slow down. We now have over half the list reporting already, so things will probably be pretty slow in December.  There are still no changes to the charts: in the top panel black is revenue growth rate, red EPS growth rate. In the middle black is price, red EPS, and blue price relative to the SPX. At the bottom the black bars are volume. 

First is CATM, which has been a bottle rocket since bottoming out in 2009. Both earnings and revenue growth are slowing down, but both are still positive, but it's unlikely this will keep going straight up for much longer.

DIN is an interesting case, in that revenue and earnings both spiked up right in the teeth of a bear market, and price had a delayed reaction. Since then growth has been much slower but pretty consistent, and price really hasn't caught up yet. The market may be anticipating that this will not continue.

 EBS had the highest growth rate, both earnings and revenue, of all the stocks reporting this week, but so far the market has a luke warm response. My first reaction when seeing the numbers was not to trust them, and I suspect the market feels the same way. Something isn't quite right here.

 Looking at EZPW, you wonder "what bear market?". This has about the most consistent earnings growth I have seen in a while, although revenue growth is a little scattered. This is now forming a first stage base (notice the 2009 low undercut the 2008 low, resetting the base count), and a breakout here could lead to quite big gains.

MDF is one I don't have quarterly revenue data on, but the earnings growth has been pretty good ever since the big spike in early 2009. This is also is the process of base building.

MELI has been showing up on the leadership scan quite consistently ever since I started doing it, as it was in a relentless uptrend until quite recently. It has had pretty good earnings growth of late, but revenue growth has been slowing, and the market is reluctant to get this past it's old high. Revenue growth is probably the thing to watch here, if it reverses so will price.

Most of the stocks reporting this quarter were reporting Q3 of 2010, meaning they will report Q4 next quarter, which is a perfect ie to incorporate annual earnings and revenues into the charts. Hopefully there will be enough slack in December to give me time to do that.