Capital One (COF) Gains But Lags Market: What You Should Know

Capital One (COF) closed at $134.27 in the latest trading session, marking a +0.45% move from the prior day. This move lagged the S&P 500's daily gain of 2.14%. Elsewhere, the Dow gained 1.82%, while the tech-heavy Nasdaq added 0.12%.

Prior to today's trading, shares of the credit card issuer and bank had lost 13.84% over the past month. This has lagged the Finance sector's loss of 5.3% and the S&P 500's loss of 5.01% 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 $5.53, down 21.34% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8 billion, up 12.52% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $20.24 per share and revenue of $33.14 billion. These totals would mark changes of -24.9% and +8.88%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Capital One. These recent revisions tend to reflect the evolving nature of short-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. 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 0.15% lower. Capital One currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Capital One has a Forward P/E ratio of 6.6 right now. Its industry sports an average Forward P/E of 7.05, so we one might conclude that Capital One is trading at a discount comparatively.

We can also see that COF currently has a PEG ratio of 0.4. 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 0.3 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 158, which puts it in the bottom 38% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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