Earnings trends are extremely important when evaluating stocks. At Wall St. Cheat Sheet, we view increasing earnings quarter-over-quarter as a simple way to gauge whether costs and the business model are stable. Then we like to analyze whether the company is outperforming peers in the sector. This is what we call the “E-Squared” investment analysis (‘E = Earnings Are Increasing Quarter-Over-Quarter’ + ‘E = Excellent Relative Performance Versus Peers and Sector’).
Stocks with improving earnings metrics are worthy of your extra attention. Click here to discover our CHEAT SHEET stock picks now!
Here’s your Cheat Sheet to how the top 5 mega-bank stocks rank via earnings trends:
5) Citigroup (NYSE:C): Current Price $42.34
|Revenue ($) in millions||153,260||104,350||108,190||111,700||102,590|
|Diluted EPS ($)||6.70||-56.30||-7.99||3.54||3.63|
Well, it doesn’t take a rocket scientist to see Citigroup almost went bust in 2008. The company has at least regained some sea legs, but 2011 wasn’t anything to write home about.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Sep. 30, 2011||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sep. 30, 2012|
|Revenue ($) in millions||26,860||22,890||25,000||24,080||18,970|
|Diluted EPS ($)||1.23||0.32||0.95||0.95||0.15|
As you’ll see below, last quarter wasn’t the best for financials. However, Citigroup saw much higher declines than the stocks below…