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Capital One (COF) Gains As Market Dips: What You Should Know

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In the latest trading session, Capital One (COF - Free Report) closed at $166.29, marking a +0.22% move from the previous day. This change outpaced the S&P 500's 0.36% loss on the day.

Prior to today's trading, shares of the credit card issuer and bank had gained 8.02% over the past month. This has outpaced the Finance sector's gain of 4.54% and the S&P 500's gain of 0.75% in that time.

Investors will be hoping for strength from COF as it approaches its next earnings release. In that report, analysts expect COF to post earnings of $4.42 per share. This would mark year-over-year growth of 374.53%. Meanwhile, our latest consensus estimate is calling for revenue of $7 billion, up 6.76% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $18.35 per share and revenue of $28.77 billion. These totals would mark changes of +253.56% and +0.85%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for COF. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.77% higher within the past month. COF is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that COF has a Forward P/E ratio of 9.04 right now. For comparison, its industry has an average Forward P/E of 8.95, which means COF is trading at a premium to the group.

Investors should also note that COF has a PEG ratio of 1 right now. 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. Financial - Consumer Loans stocks are, on average, holding a PEG ratio of 0.42 based on yesterday's closing prices.

The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% 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.

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