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Capital One (COF) Dips More Than Broader Markets: What You Should Know

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Capital One (COF - Free Report) closed the most recent trading day at $138.37, moving -1.54% from the previous trading session. This change lagged the S&P 500's 1.18% loss on the day. At the same time, the Dow lost 1.34%, and the tech-heavy Nasdaq lost 0.92%.

Prior to today's trading, shares of the credit card issuer and bank had lost 7.49% over the past month. This has lagged the Finance sector's loss of 4.48% and the S&P 500's loss of 0.73% in that time.

Wall Street will be looking for positivity from Capital One as it approaches its next earnings report date. In that report, analysts expect Capital One to post earnings of $5.14 per share. This would mark a year-over-year decline of 2.84%. Our most recent consensus estimate is calling for quarterly revenue of $7.87 billion, up 7.21% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $26.45 per share and revenue of $30.15 billion, which would represent changes of +409.63% and +5.71%, respectively, from the prior year.

Any recent changes to analyst estimates for Capital One should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.89% higher within the past month. Capital One currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Capital One is holding a Forward P/E ratio of 5.31. For comparison, its industry has an average Forward P/E of 5.76, which means Capital One is trading at a discount to the group.

Meanwhile, COF's PEG ratio is currently 0.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Consumer Loans industry currently had an average PEG ratio of 0.24 as of yesterday's close.

The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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