Which Payment Services Stocks have the Strongest Earnings Trends?

  Google+ | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

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 4 payment services stocks rank via earnings trends:

Western Union Co. (NYSE:WU): Current Price $14.40

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 5,282 5,084 5,193 5,491 5,665
Diluted EPS ($) 1.24 1.21 1.36 1.84 1.69

We like the generally upward trend in revenue and EPS at Western Union, though we note that EPS fell off a bit in 2012.

These stocks are hitting our Profit Targets. Click here now to discover winning stocks!

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 1,431 1,393 1,425 1,422 1,425
Diluted EPS ($) 0.73 0.40 0.44 0.45 0.40

Unfortunately, the quarterly results are rather flat, and EPS in December 2012 is down some. We reject Western Union from this analysis…

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business