This story originally appeared on Zacks
Capital One (COF) closed at $160.56 in the last trading session, posting a move of -0.5% from the day before. This change delayed the S&P 500’s gains by 0.08% on the day. Meanwhile, the Dow Jones lost 0.56%, and the tech-heavy Nasdaq lost 0.42%.
Ahead of today’s trading, the credit card issuer and bank’s share prices are up 9.02% over the past month. This outpaced the finance sector’s gain of 5.73% and the S&P 500’s gain of 0.22% in that time.
Investors are hoping for some strength from Capital One as it nears its next earnings release, which is expected to be January 25, 2022. In that report, analysts expect Capital One to report earnings of $5.11 per share. This would represent a year over year decline of 3.4%. Meanwhile, our latest consensus estimate calls for revenue of $7.92 billion, an increase of 7.91% over the prior year quarter.
Investors may also notice recent changes in analyst estimates for Capital One. These reviews help show the ever-changing nature of near-term business trends. As such, positive rating reviews reflect the analyst’s optimism about the company’s business and profitability.
Our research shows that these discretionary changes are directly correlated with near-term stock prices. We developed Zacks Rank to take advantage of this phenomenon. Our system takes these discretionary changes into account and provides a clear and actionable rating model.
Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank has a track record of outperforming externally audited, with the #1 stock having achieved a +25% average annual return since 1988. Within 30 The past few days, the combined EPS estimate is up 1%. Capital One holds Zacks’ rating of number two (buy) at the moment.
Looking at its valuation, Capital One holds a forward P/E ratio of 8.26. For comparison, its industry has an average forward P/E of 8.06, which means that Capital One is trading at a premium to the group.
Investors should also note that COF has a PEG ratio of 0.39 at the moment. This common metric is similar to the widely known price-earnings (P/E) ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The average P/E ratio for the COF industry was 0.41 as of yesterday’s close.
Finance sector – Consumer loans are part of the finance sector. The industry currently has a Zacks Industry Rating of 64, placing it in the top 26% of all 250+ industries.
The Zacks Industry Ranking measures the strength of our individual industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.
You can find more information about all of these metrics and more at Zacks.com.
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