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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 the most recent trading day at $126.08, moving +1.03% from the previous trading session. This change outpaced the S&P 500's 0.72% loss on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.02%.
Prior to today's trading, shares of the credit card issuer and bank had lost 17.99% over the past month. This has lagged the Finance sector's loss of 8.39% and the S&P 500's loss of 6.24% in that time.
Wall Street will be looking for positivity from Capital One as it approaches its next earnings report date. In that report, analysts expect Capital One to post earnings of $5.53 per share. This would mark a year-over-year decline of 21.34%. Meanwhile, our latest consensus estimate is calling for revenue of $8 billion, up 12.52% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $20.24 per share and revenue of $33.14 billion, which would represent changes of -24.9% and +8.88%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Capital One. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. Capital One currently has a Zacks Rank of #3 (Hold).
Investors should also note Capital One's current valuation metrics, including its Forward P/E ratio of 6.17. This valuation marks a discount compared to its industry's average Forward P/E of 6.98.
Meanwhile, COF's PEG ratio is currently 0.37. 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. COF's industry had an average PEG ratio of 0.3 as of yesterday's close.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Capital One (COF) Gains As Market Dips: What You Should Know
Capital One (COF - Free Report) closed the most recent trading day at $126.08, moving +1.03% from the previous trading session. This change outpaced the S&P 500's 0.72% loss on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.02%.
Prior to today's trading, shares of the credit card issuer and bank had lost 17.99% over the past month. This has lagged the Finance sector's loss of 8.39% and the S&P 500's loss of 6.24% in that time.
Wall Street will be looking for positivity from Capital One as it approaches its next earnings report date. In that report, analysts expect Capital One to post earnings of $5.53 per share. This would mark a year-over-year decline of 21.34%. Meanwhile, our latest consensus estimate is calling for revenue of $8 billion, up 12.52% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $20.24 per share and revenue of $33.14 billion, which would represent changes of -24.9% and +8.88%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Capital One. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. Capital One currently has a Zacks Rank of #3 (Hold).
Investors should also note Capital One's current valuation metrics, including its Forward P/E ratio of 6.17. This valuation marks a discount compared to its industry's average Forward P/E of 6.98.
Meanwhile, COF's PEG ratio is currently 0.37. 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. COF's industry had an average PEG ratio of 0.3 as of yesterday's close.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.