Earnings Growth Charts

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 I have 5 stocks from the earnings list reporting accelerating growth, so those are the 5 I graphed this week. On the graphs, in the top panel the red line is quarterly EPS growth rate, black is quarterly revenue growth rate. In the middle, the red line is quarterly EPS, green quarterly revenue, black is price, and blue price relative to SPX. None of these reported the end of a fiscal year, so I did not include annual EPS. At the bottom the black bars are volume.

 Of the 5, DDS has the best numbers, and reported the 2nd consecutive quarter of triple digit growth. Long term growht doesn;t look that impressive, but the market apparently likes it, as it is in a pretty fierce up trend, which, in this market environment, is sticking out like a sore thumb. Revenue growth is a lot lower than earnings growth, which might be a red flag, but for now, this is one of the hot stocks in the market.

EBIX has been in a base for a long time now, and is in a long term slowing growth phase. Whether this can sustain another round of high growth is unknown, but it is quite possible that this is now about as big as it will ever get, unless they are able to make acquisitions. 

GPIC reported accelerating growth, but that is coming off a long period of no growth. This one is going nowhere and will probably not make the next cut.

MED is another one with suspect numbers, as it reports a quarter of accelerating growth coming off a big drop in EPS.  This one has never passed the “smell test”, and it appears I may be right about it.

VSI is a new one on the list, and has not been trading long, but since it came public it has gone into a pretty monstrous up trend. There isn’t a lot of EPS data for this available, and even less revenue data, but this looks like it is in the early stages of a growth cycle, so it would pay to keep an eye on it, and a small starter position might also be a pretty good idea.

2012-11-11 14:45:48

Source: http://samuraitrader.blogspot.com/2012/11/earnings-growth-charts_11.html