Web NASDAQ.com

The NASDAQ Dozen

  1. Intro
  2. 50-Day Average Volume
  3. Short-Term Price Movement
  4. Long-Term Price Movement
  5. Revenue
  6. Earnings per Share (EPS)
  7. Net Income
  8. Analyst Recommendations
  9. 12-Month Price Target
  10. Positive Earnings Surprises
  11. Earnings Forecast
  12. Industry Earnings
  13. Industry Price-Earnings

Revenue - The NASDAQ Dozen


Revenue
After you have completed the technical analysis of the stock, you will want to examine the fundamental health of the company by analyzing the next factor - revenue. You will find revenue under the Revenue/EPS Summary page (see Figure 7).

Importance of Revenue
Revenue will give you an idea of how much money the company making. If revenue is consistently increasing, this means the company is growing. As the company continues to grow, the stock price will appreciate in value.

Scoring Revenue

  • Pass—Give this factor a passing score if the stock has increasing revenue over the last four quarters and increasing year-over-year revenue totals.
  • Fail—Give this factor a failing score if the stock has decreasing revenue over the last four quarters and decreasing year-over-year revenue totals.

Looking at the revenue totals for GOOG in Figure 7, it clearly should receive a passing score. For fiscal year 2006, the revenue increased each quarter as did the year-over-year revenue growth.

Revenue: PASS

Revenue Results
Figure 7—Revenue Results

<< Previous  Intro  1  2  3  4  5  6  7  8  9  10  11  12  Next >>

  All content in this article is supplied by Investools. To learn more about their investor education offerings, please visit www.investools.com. Find more great articles from Investools in our personal finance and investing sections.