Capital One (COF) exceeds stock market gains: what you need to know

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In the last trading session, Capital One (COF) closed at $ 145.10, marking a movement of + 0.95% from the previous day. The change topped the S&P 500’s 0.62% gain on the day. Meanwhile, the Dow Jones gained 0.55% and the Nasdaq, an index with a strong technology component, lost 0.03%.

Prior to today’s stock market, shares of the credit card issuer and the bank had lost 6.9% in the past month. This delayed the financial sector’s 1.47% loss and the S&P 500’s 0.87% gain during this period.

Investors are hopeful that Capital One will strengthen as its next earnings release approaches. In this report, analysts expect Capital One to post earnings of $ 5.16 per share. That would mark a year-over-year decline of 2.46%. Meanwhile, our latest consensus estimate projects revenue of $ 7.87 billion, up 7.21% from the previous year’s quarter.

For the full year, our consensus estimates from Zacks suggest analysts expect earnings of $ 26.63 per share and revenue of $ 30.16 billion. These totals would mark changes of + 41.1% and + 5.72%, respectively, from a year ago.

It’s also important to note the recent changes to analyst estimates for Capital One. These revisions help show the ever-changing nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to stock movements close to the team. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.

Zacks’ ranking system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive record of externally audited outperformance, with # 1 stocks generating an average annual return of + 25% since 1988. Over the past 30 days, our consensus EPS forecast has increased 0.5%. 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 5.45. Its industry has an average forward P / E of 5.67, so one could conclude that Capital One is trading at a comparatively discount.

Additionally, it should be mentioned that COF has a PEG ratio of 0.26. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected profit growth rate of the company. The COF industry had an average PEG ratio of 0.26 at yesterday’s close.

The Finance – Consumer Loans sector is part of the Finance sector. This industry currently has a Zacks Industry Rank of 105, which places it in the top 42% of 250+ industries.

The Zacks Industry Rankings assesses the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock market metrics and more on Zacks.com.

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