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 credit card stocks rank via earnings trends:
Capital One Financial Corp. (NYSE:COF): Current Price $56.99
|Revenue ($) in millions||19,130||17,860||15,950||19,070||18,520|
|Diluted EPS ($)||3.97||-0.21||0.74||6.01||6.80|
Capital One has been growing earnings, though revenue has remained more-or-less flat on a yearly basis.
Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:
|Quarter||Sep. 30, 2011||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sep. 30, 2012|
|Revenue ($) in millions||4,706||4,569||5,500||5,670||6,390|
|Diluted EPS ($)||1.77||0.85||2.72||0.16||2.01|
But things have been humming along nicely on the quarterly revenue front. Unfortunately, earnings are quite another matter, being highly inconsistent. Not exactly our cup of tea…