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

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Capital One (COF - Free Report) closed at $124.05 in Friday's trading session, marking a -1.84% move from the prior day. This change lagged the S&P 500's 1.64% loss on the day. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.03%.

Prior to Friday's trading, shares of the credit card issuer and bank had lost 3.04% over the past month. This has lagged the Finance sector's gain of 2.16% and the S&P 500's gain of 0.73% in that time.

Wall Street will be looking for positivity from Capital One as it approaches its next earnings report date. The company is expected to report EPS of $5.10, down 33.85% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.23 billion, up 11.64% from the year-ago period.

COF's full-year Zacks Consensus Estimates are calling for earnings of $20.12 per share and revenue of $33.6 billion. These results would represent year-over-year changes of -25.34% and +10.41%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.46% lower. Capital One is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Capital One currently has a Forward P/E ratio of 6.28. Its industry sports an average Forward P/E of 6.5, so we one might conclude that Capital One is trading at a discount comparatively.

Investors should also note that COF has a PEG ratio of 0.36 right now. 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. COF's industry had an average PEG ratio of 0.36 as of the recent close.

The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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. You can find more information on all of these metrics, and much more, on Zacks.com.

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

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