Capital One (COF) Outpaces Stock Market Gains: What You Should Know
Capital One (COF) closed the most recent trading day at $132.10, moving +1.98% from the previous trading session. This change outpaced the S&P 500's 1.04% gain on the day. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 2.52%.
Prior to today's trading, shares of the credit card issuer and bank had gained 10.13% over the past month. This has outpaced the Finance sector's gain of 5.16% and the S&P 500's loss of 0.15% in that time.
Investors will be hoping for strength from COF as it approaches its next earnings release. The company is expected to report EPS of $3.76, up 224.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.95 billion, down 4.07% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.35 per share and revenue of $28.49 billion, which would represent changes of +137.96% and -0.13%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for COF. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.36% higher. COF currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, COF currently has a Forward P/E ratio of 10.49. This represents a premium compared to its industry's average Forward P/E of 10.24.
It is also worth noting that COF currently has a PEG ratio of 0.71. 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 0.79 as of yesterday's close.
The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% 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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