Capital One (COF) Gains as the Market Goes Down: What You Need to Know

VSapital One (COF) closed at $131.76 last trading session, marking a +1.89% move from the previous day. The stock topped the S&P 500’s 0.27% daily loss. Meanwhile, the Dow Jones gained 0.4% and the tech-heavy Nasdaq lost 0.18%.

As of today, shares of the credit card issuer and bank were down 0.73% in the past month. Meanwhile, the financials sector gained 5.08%, while the S&P 500 gained 7.36%.

Capital One will be looking to show strength ahead of its next earnings release, which is expected to be on April 26, 2022. On that day, Capital One is expected to report earnings of $5.46 per share, which would represent an annual over-decrease of 22.33%. Our most recent consensus estimate calls for quarterly revenue of $8.02 billion, up 12.73% from the prior year period.

Zacks Consensus estimates for the full year of COF call for earnings of $20.15 per share and revenue of $33.2 billion. These results would represent year-over-year variations of -25.23% and +9.09%, respectively.

Investors should also note any recent changes to analyst estimates for Capital One. These revisions help show the ever-changing nature of short-term trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.

The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past 30 days, our consensus EPS projection has fallen 0.45%. Capital One currently sports a Zacks rank of #3 (Hold).

As for its valuation, Capital One holds a Forward P/E ratio of 6.42. This represents a discount to the average PER of its sector of 7.18.

It should also be noted that the COF currently has a PEG ratio of 0.39. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. The COF industry had an average PEG ratio of 0.36 at yesterday’s close.

The Financial – Consumer Credit industry is part of the Finance sector. This group has a Zacks industry ranking of 107, which places it in the top 43% of over 250 industries.

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

You can find more information on all of these metrics, and more, at Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.