S&P 500's Best and Worst Net Income Change

The vast majority of S&P 500 companies (proxy SPY or IVV) are profitable on a 12-month basis, but some have profits strongly on the rise and others have profits strongly on the fall.

This article presents the 20 companies with the highest ratio of 12-month to average 3-FY net income, and the 20 companies with the lowest ratio.  Only the 469 companies with positive 3-yr average net income were considered.

(income in the millions)

FY 1 is the first prior fiscal year.
FY 2 is the second prior fiscal year.
FY 3 is the third prior fiscal year.

A prior post presents information about the 31 S&P 500 stocks with negative 3-year average net income.

An Excel spreadsheet containing this data for all constituents of the S&P index is available on email request.

Comments

[dancingdiva:]

Tyco should not be on the list imo. The company split into three parts last year and the statistics are screwed up.

2008 Aug 03 07:35 PM

[QVM Group:]

You are probably right about Tyco. I check with the data service to see what's what. Thanks.

2008 Aug 03 09:07 PM

[Vegasjoe:]

So what is the point of this? Buy the dogs and sell the companies with real earnings? Many of the financials will never recover in share price for two reasons, namely, there ability to lever the balance sheet and party in SIV land is over, and exisiting shareholders in most cases have been diluted into oblivion.

2008 Aug 04 05:05 AM

[QVM Group:]

The table provides data only. It does not provide recommendations.

Data is potentially useful depending on the reader and their own investment approach. It is an extract from the full list which simply identifies those companies that are increasing earnings and those that are not. That is potentially important information.

Perhaps one point would be to suggest to some readers how they might gain perspective about sectors, industries or companies by putting together a similar table for their full universe.

2008 Aug 04 10:30 AM