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If You Invested $1000 in Capital One a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Capital One (COF - Free Report) ten years ago? It may not have been easy to hold on to COF for all that time, but if you did, how much would your investment be worth today?
Capital One's Business In-Depth
With that in mind, let's take a look at Capital One's main business drivers.
Headquartered in McLean, VA, Capital One Financial Corporation is primarily focused on consumer and commercial lending as well as deposit origination. Through its banking and non-banking subsidiaries, the company, founded in 1988, provides various financial products and services to consumers, small businesses and commercial clients in the United States.
Capital One’s principal subsidiaries include Capital One Bank (USA), National Association (COBNA) and Capital One, National Association (CONA). The company reports results of its business through the following operating segments:
The Credit Card segment (contributed 61.7% to total net revenues in 2020) includes domestic consumer and small business card lending, domestic national small business lending, national closed end installment lending and the international card lending businesses in Canada and the U.K.
The Commercial Banking segment (10.4%) includes lending, deposit gathering and treasury management services to commercial real estate and middle-market customers. The segment also includes the financial results of a national portfolio of small ticket commercial real estate loans that are in run-off mode. The commercial and industrial customers include companies with annual revenues between $10 million–$1.0 billion.
The Consumer Banking segment (27%) comprises branch-based lending and deposit gathering activities for small businesses and retail customers, national deposit gathering, consumer mortgage lending and servicing activities as well as national automobile lending.
The Other category (0.9%) includes management of corporate investment portfolio and asset/liability management by centralized Corporate Treasury group.
As of Jun 30, 2021, Capital One had total assets worth $423.4 billion, total loans held for investment of $249.6 billion, total deposits of $306.3 billion and shareholders’ equity of $64.6 billion.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Capital One, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in August 2011 would be worth $3,896.56, or a gain of 289.66%, as of August 18, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 272.57% and the price of gold increased -4.27% over the same time frame in comparison.
Analysts are forecasting more upside for COF too.
Shares of Capital One have outperformed the industry so far this year. Its earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Its second-quarter 2021 results reflect improved consumer loan demand, provision benefits and higher expenses. Robust card and online-banking businesses, and a solid balance sheet are likely to keep aiding profits. With consumers gaining confidence in the economic recovery, there has been a gradual rise in the demand for consumer loans, which will support non-interest income growth. Though near-zero interest rates, deteriorating credit quality and higher operating expenses are major near-term concerns and might hurt financials, strategic inorganic expansion initiatives will support bottom-line growth. The company's impressive capital deployment plans will enhance shareholder value.
The stock is up 9.68% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2021. The consensus estimate has moved up as well.
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If You Invested $1000 in Capital One a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Capital One (COF - Free Report) ten years ago? It may not have been easy to hold on to COF for all that time, but if you did, how much would your investment be worth today?
Capital One's Business In-Depth
With that in mind, let's take a look at Capital One's main business drivers.
Headquartered in McLean, VA, Capital One Financial Corporation is primarily focused on consumer and commercial lending as well as deposit origination. Through its banking and non-banking subsidiaries, the company, founded in 1988, provides various financial products and services to consumers, small businesses and commercial clients in the United States.
Capital One’s principal subsidiaries include Capital One Bank (USA), National Association (COBNA) and Capital One, National Association (CONA). The company reports results of its business through the following operating segments:
The Credit Card segment (contributed 61.7% to total net revenues in 2020) includes domestic consumer and small business card lending, domestic national small business lending, national closed end installment lending and the international card lending businesses in Canada and the U.K.
The Commercial Banking segment (10.4%) includes lending, deposit gathering and treasury management services to commercial real estate and middle-market customers. The segment also includes the financial results of a national portfolio of small ticket commercial real estate loans that are in run-off mode. The commercial and industrial customers include companies with annual revenues between $10 million–$1.0 billion.
The Consumer Banking segment (27%) comprises branch-based lending and deposit gathering activities for small businesses and retail customers, national deposit gathering, consumer mortgage lending and servicing activities as well as national automobile lending.
The Other category (0.9%) includes management of corporate investment portfolio and asset/liability management by centralized Corporate Treasury group.
As of Jun 30, 2021, Capital One had total assets worth $423.4 billion, total loans held for investment of $249.6 billion, total deposits of $306.3 billion and shareholders’ equity of $64.6 billion.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Capital One, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in August 2011 would be worth $3,896.56, or a gain of 289.66%, as of August 18, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 272.57% and the price of gold increased -4.27% over the same time frame in comparison.
Analysts are forecasting more upside for COF too.
Shares of Capital One have outperformed the industry so far this year. Its earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Its second-quarter 2021 results reflect improved consumer loan demand, provision benefits and higher expenses. Robust card and online-banking businesses, and a solid balance sheet are likely to keep aiding profits. With consumers gaining confidence in the economic recovery, there has been a gradual rise in the demand for consumer loans, which will support non-interest income growth. Though near-zero interest rates, deteriorating credit quality and higher operating expenses are major near-term concerns and might hurt financials, strategic inorganic expansion initiatives will support bottom-line growth. The company's impressive capital deployment plans will enhance shareholder value.
The stock is up 9.68% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2021. The consensus estimate has moved up as well.