Which 5 Mega-Bank Stocks have the Strongest Earnings Trends?

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

Fiscal Year 2007 2008 2009 2010 2011
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…