Capital One Financial Corporation’s (COF - Free Report) shares increased 35.1% in the last one year, outpacing the 31.8% gain for the Zacks categorized Financial - Consumer Loans industry.
The company’s solid balance sheet and revenue strength make it well poised for growth in the future. While its future prospects look encouraging, one should not get too excited about the stock given its elevated expenses and deteriorating asset quality.
Moreover, the stock has witnessed its current year estimates revising nearly 1% downward over the past 30 days. As a result, the stock currently carries just a Zacks Rank #3 (Hold).
Going by the fundamentals, Capital One has witnessed its revenues growing at a six-year (2011–2016) CAGR of 9.4%. Moreover, the company’s strength in its credit card and online banking business will likely continue to drive top-line growth.
Capital One has an efficient capital deployment strategy in place. With a solid balance sheet position, the company is expected to continue enhancing shareholder value.
However, the company’s deteriorating asset quality is an area of concern. Moreover, due to losses in auto portfolio and U.S. card business, credit quality is expected to remain under stress for some time.
Also, the company’s expenses have been increasing at a CAGR of 4% for the last five years (2012–2016). In fact, with increasing loan growth opportunities, marketing expenses are likely to remain elevated.
Some better-ranked stocks in the finance space include Texas Capital Bancshares, Inc. (TCBI - Free Report) , Bank of America Corp. (BAC - Free Report) and U.S. Bancorp (USB - Free Report) .
Texas Capital has witnessed an upward earnings estimate revision of 6.8% for the current year, in the past 60 days. Its share price has increased 69.7% in the last six months. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bank of America carries a Zacks Rank #2 (Buy). For the current year, in the past 60 days, its Zacks Consensus Estimate was revised 6.1% upward. Its share price has increased 59% in the last six months.
U.S. Bancorp also carries a Zacks Rank #2. It has witnessed an upward earnings estimate revision of 2.1% for the current year, in the past 60 days. Its share price increased 25.5% in the last six months.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Capital One Financial Corporation’s (COF - Free Report) shares increased 35.1% in the last one year, outpacing the 31.8% gain for the Zacks categorized Financial - Consumer Loans industry.
The company’s solid balance sheet and revenue strength make it well poised for growth in the future. While its future prospects look encouraging, one should not get too excited about the stock given its elevated expenses and deteriorating asset quality.
Moreover, the stock has witnessed its current year estimates revising nearly 1% downward over the past 30 days. As a result, the stock currently carries just a Zacks Rank #3 (Hold).
Going by the fundamentals, Capital One has witnessed its revenues growing at a six-year (2011–2016) CAGR of 9.4%. Moreover, the company’s strength in its credit card and online banking business will likely continue to drive top-line growth.
Capital One has an efficient capital deployment strategy in place. With a solid balance sheet position, the company is expected to continue enhancing shareholder value.
However, the company’s deteriorating asset quality is an area of concern. Moreover, due to losses in auto portfolio and U.S. card business, credit quality is expected to remain under stress for some time.
Also, the company’s expenses have been increasing at a CAGR of 4% for the last five years (2012–2016). In fact, with increasing loan growth opportunities, marketing expenses are likely to remain elevated.
Some better-ranked stocks in the finance space include Texas Capital Bancshares, Inc. (TCBI - Free Report) , Bank of America Corp. (BAC - Free Report) and U.S. Bancorp (USB - Free Report) .
Texas Capital has witnessed an upward earnings estimate revision of 6.8% for the current year, in the past 60 days. Its share price has increased 69.7% in the last six months. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bank of America carries a Zacks Rank #2 (Buy). For the current year, in the past 60 days, its Zacks Consensus Estimate was revised 6.1% upward. Its share price has increased 59% in the last six months.
U.S. Bancorp also carries a Zacks Rank #2. It has witnessed an upward earnings estimate revision of 2.1% for the current year, in the past 60 days. Its share price increased 25.5% in the last six months.
8 Stocks with Huge Profit Potential
Just released: Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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