Charles Schwab (SCHW  ) shares dipped lower following the company's Q4 results which showed the company missing expectations on the top and bottom line. Overall, the stock has been a big outperformer in recent months and one of a handful of names that is up on the year YTD.

Two major reasons for this outperformance are increased market volatility which tends to be beneficial for asset managers and rising rates which makes the massive amounts of cash held by Schwab yield more. Schwab has also benefited from increased retail interest in financial markets since the pandemic.

Inside the Numbers

Despite these favorable tailwinds, Schwab's Q4 results underwhelmed relative to expectations. The company reported $0.86 per share in adjusted earnings while analysts were looking for $0.88 per share in adjusted earnings. However, the company did achieve a record quarter with net income of $1.6 billion, a 65% increase from last year and full year earnings of $5.9 billion which is also a new record and nearly 80% higher than last year.

Revenue also beat expectations at $4.71 billion which was slightly below expectations of $4.8 billion. New core assets rose to a new record of $162.2 billion and reached $558 billion for the full year. Total assets surpassed $8 trillion, a 22% increase from last year. The company said that trading activity was quite strong from a year over year basis but off Q1 2021 levels which saw the peak of activity in speculation.

Overall, Schwab's shares look quite attractive and are one of the best ways to get exposure to rising rates. The company is slightly cheaper than the market with a forward P/E of 18.5. EPS is forecast to reach 4.8 next year which would be another year of hefty earnings growth. It also has very high margins with 97.5% gross margins and 22% profit margins.