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Capital One (COF) Stock Moves -1.91%: What You Should Know

Capital One (COF) closed the most recent trading day at $148.26, moving -1.91% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.94%. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 0.39%.

Prior to today's trading, shares of the credit card issuer and bank had gained 1.73% over the past month. This has lagged the Finance sector's gain of 6.6% and the S&P 500's gain of 5.72% in that time.

Wall Street will be looking for positivity from Capital One as it approaches its next earnings report date. This is expected to be January 25, 2022. On that day, Capital One is projected to report earnings of $5.16 per share, which would represent a year-over-year decline of 2.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.89 billion, up 7.54% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Capital One. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.53% higher. Capital One is currently a Zacks Rank #2 (Buy).

Investors should also note Capital One's current valuation metrics, including its Forward P/E ratio of 7.84. For comparison, its industry has an average Forward P/E of 7.85, which means Capital One is trading at a discount to the group.

Also, we should mention that COF has a PEG ratio of 0.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial - Consumer Loans stocks are, on average, holding a PEG ratio of 0.46 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 86, which puts it in the top 34% 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.

To follow COF in the coming trading sessions, be sure to utilize Zacks.com.


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Capital One Financial Corporation (COF): Free Stock Analysis Report
 
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