Is there a surprise coming for Capital One Financial (COF) this earnings season?

Investors are always looking for stocks that are ready to beat in earnings season and Capital One Financial Corporation COF can be one of these companies. The company has profits coming up very soon, and things are looking pretty good for their report.

This is because Capital One Financial is seeing favorable earnings estimate revision activity lately, which is usually a precursor to higher earnings. After all, analysts raising estimates just ahead of earnings – with the most up-to-date information possible – are a pretty good indicator of some beneath the surface favorable trends for the COF in this report.

In fact, the most accurate estimate for the current quarter is currently $ 5.46 per share for COF, compared to Zacks’ broader consensus estimate of $ 5.22 per share. This suggests that analysts very recently upped their estimates for the COF, giving the stock a Zacks Earnings ESP of + 4.66% ahead of the earnings season.

Capital One Financial Corporation’s EPS price and surprise

Capital One Financial Corporation price-eps-surprise | Quote from Capital One Financial Corporation

Why is this important?

A positive reading of Zacks Earnings ESP has proven to be very powerful in producing both positive surprises and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive ESP on earnings and a Zacks Rank # 3 (Hold) or better show a positive surprise almost 70% of the time, and have generated more than 28% on average of annual returns (see more ESP Top Earnings stocks here).

Since COF has a Zacks Rank # 2 (Buy) and ESP in positive territory, investors might want to consider this stock before earnings. You can see The full list of today’s Zacks # 1 Rank (Fort Buy) stocks here.

Clearly, recent earnings estimate revisions suggest that good things are ahead for Capital One Financial, and that a beating may be in the cards for the next report.

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Capital One Financial Corporation (COF): Free share analysis report

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