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Capital One (COF) Gains As Market Dips: What You Should Know
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Capital One (COF - Free Report) closed at $147.92 in the latest trading session, marking a +1.29% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Prior to today's trading, shares of the credit card issuer and bank had lost 6.6% over the past month. This has lagged the Finance sector's loss of 3.61% and the S&P 500's loss of 0.13% in that time.
Investors will be hoping for strength from Capital One as it approaches its next earnings release. In that report, analysts expect Capital One to post earnings of $5.15 per share. This would mark a year-over-year decline of 2.65%. Meanwhile, our latest consensus estimate is calling for revenue of $7.87 billion, up 7.21% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.63 per share and revenue of $30.15 billion. These totals would mark changes of +413.1% and +5.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Capital One. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.46% higher. Capital One is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Capital One is currently trading at a Forward P/E ratio of 5.48. This valuation marks a discount compared to its industry's average Forward P/E of 5.96.
Investors should also note that COF has a PEG ratio of 0.26 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Consumer Loans was holding an average PEG ratio of 0.26 at yesterday's closing price.
The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Capital One (COF) Gains As Market Dips: What You Should Know
Capital One (COF - Free Report) closed at $147.92 in the latest trading session, marking a +1.29% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Prior to today's trading, shares of the credit card issuer and bank had lost 6.6% over the past month. This has lagged the Finance sector's loss of 3.61% and the S&P 500's loss of 0.13% in that time.
Investors will be hoping for strength from Capital One as it approaches its next earnings release. In that report, analysts expect Capital One to post earnings of $5.15 per share. This would mark a year-over-year decline of 2.65%. Meanwhile, our latest consensus estimate is calling for revenue of $7.87 billion, up 7.21% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.63 per share and revenue of $30.15 billion. These totals would mark changes of +413.1% and +5.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Capital One. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.46% higher. Capital One is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Capital One is currently trading at a Forward P/E ratio of 5.48. This valuation marks a discount compared to its industry's average Forward P/E of 5.96.
Investors should also note that COF has a PEG ratio of 0.26 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Consumer Loans was holding an average PEG ratio of 0.26 at yesterday's closing price.
The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.