Stock Diagnostics - Diagnose before you buy... Monitor what you own
Home FAQs Subscribe Learn More Watch Video Login
EPS is a Misleading Indicator

WebMD Corporation (HLTH)
Circuit City Stores / Carmax (CC)

WebMD was trading at $4.93 per share when for its 12 months ended 6/30/02 it reported positive OPS (green bars), for the first time in its history, and negative EPS (gray bars). Its positive OPS proved to be the key leading indicator when in its very next quarter ended 9/30/02 it generated record positive OPS (green bar) for its previous 12 months and positive quarterly EPS for the first time in its history. On February 14, 3003 WebMD's shares closed at $9.08, an 84% increase over the six month period.

Circuit City was trading at $9.78 per share when it reported negative OPS, the first time for any of its 2nd fiscal quarters over the previous 5 years, and positive EPS (black bars). Its negative OPS proved to be the key leading indicator when in its very next quarter (fiscal 3rd) its EPS turned negative. Circuit Citys' OPS for its most recent 12 months also turned negative (red bar) for the first time in its last 5 years while its EPS remained positive (black bars). On February 14, 3003 Circuit City's shares closed at $4.76, a 51% decrease over the four month period.

The validity of EPS (earnings per share), long considered by Wall Street to be the leading predictor of value, is being challenged by OPS (Operational-cashflow Per Share). StockDiagnostics.com monitors cash flow for over 10,000 companies and is the exclusive publisher of OPS data.

Lehman Brothers Holdings Inc.
BankUnited Financial Corporation
Morgan Stanley
Merrill Lynch
Goldman Sachs
Under Armour vs. Nike
Sears
uDate and Lending Tree
AstroPower vs Suprema
Amazon vs Sears
WebMD vs Circuit City
Hoover's vs Astro Power
Numerical vs Suprema

©2002-2005 StockDiagnostics.com  Patents Pending.    
Disclaimer Terms of Service Privacy About Us