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Capital One Financial Corporation (COF), headquartered in McLean, Virginia, is a leading financial services company specializing in credit cards, auto loans, banking, and savings accounts. With a market cap of $52.22 billion, Capital One is a significant entity in the financial sector renowned for its innovative approach to digital banking and customer-centric financial products. Through its robust offerings and commitment to technological advancement, Capital One continues to play a pivotal role in shaping the future of financial services.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Capital One fits this criterion perfectly, signifying its substantial size, stability, and influence in the financial services industry. The company's diverse range of banking and financial products, combined with its innovative approach to customer service and technology, make it a trusted partner for businesses and individuals seeking comprehensive financial solutions.
COF shares are trading 8.4% below their 52-week high of $149.94, which they hit on Apr. 23. COF has seen a marginal gain over the last three months compared to the 1.1% gain seen in the iShares U.S. Financial Services ETF (IYG) during the same period.
In the long term, COF is up 4.8% YTD, and the shares have returned an impressive 24.8% over the past 52 weeks. In comparison, IYG gained 8.8% in 2024 and 24.2% over the past year.
To confirm the bearish price trend, COF has been trading below its 50-day moving average since mid-May. However, it has been trading above its 200-day moving average since early November, indicating a long-term bullish price trend.
Capital One Financial reported Q1 earnings on Apr. 25. The stock declined 2% on the earnings release day. The company reported a net income of $1.28 billion, translating to $3.13 per share. Adjusted earnings amounted to $3.21 per share, missing the Wall Street estimate of $3.25 per share.
Highlighting the contrast in performance, rival American Express Company (AXP) has outperformed COF and IYG, gaining 22.4% on a YTD basis.
Despite its recent underperformance compared to IYG, analysts are moderately optimistic about COF's prospects. The stock has a consensus rating of "Moderate Buy" from 21 analysts in coverage. The mean price target of $150 reflects a 9.2% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
