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Tickers in this Article: TU, AMZN, GOOG, GME, ERTS
Many investors have felt the pain associated with the onset of the recession. In some cases, their stock positions are down as much as 50%. While this sounds discouraging, recessions have endings just like everything else. Once this happens, the economy can start to bottom and a gradual recovery can begin. Of recent evidence that the economy could be reaching a bottom, George Soros said, "The economic free fall has been stopped, the collapse of the financial system averted. National economic stimulus programs are starting to take effect. The downward dynamic is easing." Thus, investors are looking for areas where they can profit from the changed taking place.

8 Ways To Survive A Market Downturn

Getting Well-Positioned
When the economy begins to stabilize, it is imperative that investors position themselves in stocks that can benefit from the change in trajectory. Some of these companies are:

Telus (NYSE:TU) reported increased year-over-year (YOY) earnings at $1.01, compared to 90 cents the same time last year. CEO Darren Entwistle said, "We are continuing to invest in our core business, including our broadband wireless and wire line networks. These capital investments are aimed at providing competitive advantage and supporting Telus' growth strategy."

Amazon (Nasdaq:AMZN) reported earnings at 41 cents per share, up from the 34 cents one year ago. However, Amazon also reported that the e-book reader Kindle was much more successful than anticipated.

(Nasdaq:GOOG) reported increased YOY earnings at $5.16 in comparison to $5.10 one year ago. The company credits its business model and the shift from traditional to online advertising as reasons for its success. In spite the tough economic conditions, all three companies reported improved YOY earnings - signs of financial strength and improving economic conditions. (For more about earnings, read Core Earnings Measure Up.)

GameStop (NYSE:GME) reported better-than-expected YOY earnings at $1.39 per share in comparison to $1.14 one year ago. The company attributes its solid earnings to its ability to meet customer demands.

Electronic Arts
(Nasdaq:ERTS) reported weaker-than-expected earnings at negative 37 cents per share in comparison to 9 cents the same time last year. Clearly, GameStop is the stronger of the two gaming companies.

Bottom Line
Even though economic conditions appear to be improving, finding companies with improving YOY earnings is an important step towards profitability. While no one knows what the future will bring, improving YOY earnings is a good way to predict future earnings growth. (For more, read Everything You Need To Know About Earnings.)

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