Is Capital One Stock a Good Investment?
Capital One Investment Advice | COF |
- Examine Capital One's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Capital One's leadership team and their track record. Good management can help Capital One navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Finance space and any emerging trends that could impact Capital One's business and its evolving consumer preferences.
- Compare Capital One's performance and market position to its competitors. Analyze how Capital One is positioned in terms of product offerings, innovation, and market share.
- Check if Capital One pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Capital One's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Capital One Financial stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Capital One Financial is a good investment.
Sell | Buy |
Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Capital One Stock
Researching Capital One's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 93.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.27. Some equities with similar Price to Book (P/B) outperform the market in the long run. Capital One Financial has Price/Earnings To Growth (PEG) ratio of 2.08. The entity recorded earning per share (EPS) of 11.58. The firm last dividend was issued on the 18th of February 2025. Capital One had 3:1 split on the 2nd of June 1999.
To determine if Capital One is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Capital One's research are outlined below:
| Capital One has a strong financial position based on the latest SEC filings | |
| Over 93.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from thelincolnianonline.com: Zacks Research Issues Pessimistic Estimate for COF Earnings |
Capital One Quarterly Gross Profit |
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Capital One uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Capital One Financial. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Capital One's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 25th of April 2024 Upcoming Quarterly Report | View | |
| 18th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 23rd of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Capital One's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Capital One's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1998-04-16 | 1998-03-31 | 0.28 | 0.32 | 0.04 | 14 | ||
2007-10-18 | 2007-09-30 | -0.3 | -0.21 | 0.09 | 30 | ||
2009-07-23 | 2009-06-30 | -0.76 | -0.65 | 0.11 | 14 | ||
2004-01-21 | 2003-12-31 | 1 | 1.11 | 0.11 | 11 | ||
2003-10-22 | 2003-09-30 | 1.06 | 1.17 | 0.11 | 10 | ||
2003-07-16 | 2003-06-30 | 1.1 | 1.23 | 0.13 | 11 | ||
2004-07-21 | 2004-06-30 | 1.5 | 1.65 | 0.15 | 10 | ||
2002-10-15 | 2002-09-30 | 0.98 | 1.13 | 0.15 | 15 |
Capital One Target Price Consensus
Capital target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Capital One's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 22 | Buy |
Most Capital analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Capital stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Capital One Financial, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationCapital One Target Price Projection
Capital One's current and average target prices are 202.16 and 200.06, respectively. The current price of Capital One is the price at which Capital One Financial is currently trading. On the other hand, Capital One's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Capital One Market Quote on 17th of February 2025
Target Price
Analyst Consensus On Capital One Target Price
Capital One Analyst Ratings
Capital One's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Capital One stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Capital One's financials, market performance, and future outlook by experienced professionals. Capital One's historical ratings below, therefore, can serve as a valuable tool for investors.Know Capital One's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Capital One is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Capital One Financial backward and forwards among themselves. Capital One's institutional investor refers to the entity that pools money to purchase Capital One's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Aristotle Capital Management Llc | 2024-09-30 | 8.2 M | Geode Capital Management, Llc | 2024-09-30 | 8 M | Fmr Inc | 2024-09-30 | 6.6 M | Pzena Investment Management, Llc | 2024-12-31 | 6.2 M | Eagle Capital Management Llc | 2024-12-31 | 5.4 M | Arrowstreet Capital Limited Partnership | 2024-09-30 | 4.5 M | Capital World Investors | 2024-12-31 | 4.3 M | Clearbridge Advisors, Llc | 2024-09-30 | 4.1 M | Bank Of New York Mellon Corp | 2024-12-31 | 4 M | Vanguard Group Inc | 2024-12-31 | 31.7 M | Blackrock Inc | 2024-09-30 | 25.6 M |
Capital One's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 77.07 B.Market Cap |
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Capital One's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.01 | 0.02 | |
| Return On Assets | 0.01 | 0.02 | |
| Return On Equity | 0.10 | 0.14 |
Determining Capital One's profitability involves analyzing its financial statements and using various financial metrics to determine if Capital One is a good buy. For example, gross profit margin measures Capital One's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Capital One's profitability and make more informed investment decisions.
Evaluate Capital One's management efficiency
At this time, Capital One's Return On Equity is most likely to slightly decrease in the upcoming years. At this time, Capital One's Non Currrent Assets Other are most likely to increase significantly in the upcoming years. The Capital One's current Total Current Assets is estimated to increase to about 59.1 B, while Other Current Assets are projected to decrease to roughly 33.3 B. Capital One's management efficiency ratios could be used to measure how well Capital One manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 136.72 | 143.55 | |
| Tangible Book Value Per Share | 101.26 | 106.32 | |
| Enterprise Value Over EBITDA | -15.4 K | -14.6 K | |
| Price Book Value Ratio | 0.99 | 0.94 | |
| Enterprise Value Multiple | -15.4 K | -14.6 K | |
| Price Fair Value | 0.99 | 0.94 | |
| Enterprise Value | 24.9 B | 26.1 B |
The management team at Capital One has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Basic technical analysis of Capital Stock
As of the 17th of February 2025, Capital One shows the Risk Adjusted Performance of 0.0744, mean deviation of 1.2, and Downside Deviation of 1.42. Capital One Financial technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Capital One Financial maximum drawdown, and the relationship between the information ratio and downside variance to decide if Capital One Financial is priced correctly, providing market reflects its regular price of 202.16 per share. Given that Capital One has jensen alpha of 0.1381, we suggest you to validate Capital One Financial's prevailing market performance to make sure the company can sustain itself at a future point.Capital One's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Capital One insiders, such as employees or executives, is commonly permitted as long as it does not rely on Capital One's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Capital One insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Kevin Borgmann over six months ago Disposition of 2503 shares by Kevin Borgmann of Capital One at 131.28 subject to Rule 16b-3 | ||
Kevin Borgmann over six months ago Disposition of 23582 shares by Kevin Borgmann of Capital One at 86.34 subject to Rule 16b-3 | ||
Richard Fairbank over six months ago Disposition of 115812 shares by Richard Fairbank of Capital One at 74.96 subject to Rule 16b-3 | ||
Robert Alexander over six months ago Disposition of 1497 shares by Robert Alexander of Capital One at 136.36 subject to Rule 16b-3 | ||
Sheldon Hall over six months ago Disposition of 1022 shares by Sheldon Hall of Capital One at 136.36 subject to Rule 16b-3 | ||
Celia Karam over six months ago Disposition of 6784 shares by Celia Karam of Capital One at 138.46 subject to Rule 16b-3 |
Capital One's Outstanding Corporate Bonds
Capital One issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Capital One Financial uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Capital bonds can be classified according to their maturity, which is the date when Capital One Financial has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| CAPITAL ONE FINL Corp BondUS14040HBJ32 | View | |
| CAPITAL ONE FINL Corp BondUS14040HBK05 | View | |
| CAPITAL ONE FINL Corp BondUS14040HBN44 | View | |
| CAPITAL ONE FINANCIAL Corp BondUS14040HCG83 | View | |
| COF 1878 02 NOV 27 Corp BondUS14040HCH66 | View | |
| COF 2618 02 NOV 32 Corp BondUS14040HCJ23 | View | |
| COF 2636 03 MAR 26 Corp BondUS14040HCM51 | View | |
| COF 3273 01 MAR 30 Corp BondUS14040HCN35 | View |
Understand Capital One's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Capital One's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0744 | |||
| Market Risk Adjusted Performance | 0.1463 | |||
| Mean Deviation | 1.2 | |||
| Semi Deviation | 1.3 | |||
| Downside Deviation | 1.42 | |||
| Coefficient Of Variation | 1026.19 | |||
| Standard Deviation | 1.53 | |||
| Variance | 2.34 | |||
| Information Ratio | 0.0902 | |||
| Jensen Alpha | 0.1381 | |||
| Total Risk Alpha | 0.1368 | |||
| Sortino Ratio | 0.0969 | |||
| Treynor Ratio | 0.1363 | |||
| Maximum Drawdown | 6.42 | |||
| Value At Risk | (2.18) | |||
| Potential Upside | 2.7 | |||
| Downside Variance | 2.03 | |||
| Semi Variance | 1.69 | |||
| Expected Short fall | (1.31) | |||
| Skewness | 0.1453 | |||
| Kurtosis | (0.03) |
| Risk Adjusted Performance | 0.0744 | |||
| Market Risk Adjusted Performance | 0.1463 | |||
| Mean Deviation | 1.2 | |||
| Semi Deviation | 1.3 | |||
| Downside Deviation | 1.42 | |||
| Coefficient Of Variation | 1026.19 | |||
| Standard Deviation | 1.53 | |||
| Variance | 2.34 | |||
| Information Ratio | 0.0902 | |||
| Jensen Alpha | 0.1381 | |||
| Total Risk Alpha | 0.1368 | |||
| Sortino Ratio | 0.0969 | |||
| Treynor Ratio | 0.1363 | |||
| Maximum Drawdown | 6.42 | |||
| Value At Risk | (2.18) | |||
| Potential Upside | 2.7 | |||
| Downside Variance | 2.03 | |||
| Semi Variance | 1.69 | |||
| Expected Short fall | (1.31) | |||
| Skewness | 0.1453 | |||
| Kurtosis | (0.03) |
Consider Capital One's intraday indicators
Capital One intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Capital One stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Capital One Corporate Filings
8K | 10th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 6th of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 29th of January 2025 Prospectus used primarily for registering securities for public sale. | ViewVerify | |
| 28th of January 2025 Other Reports | ViewVerify |
Capital Stock media impact
Far too much social signal, news, headlines, and media speculation about Capital One that are available to investors today. That information is available publicly through Capital media outlets and privately through word of mouth or via Capital internal channels. However, regardless of the origin, that massive amount of Capital data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Capital One news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Capital One relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Capital One's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Capital One alpha.
Capital One Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Capital One can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Capital One Financial Historical Investor Sentiment
Investor biases related to Capital One's public news can be used to forecast risks associated with an investment in Capital. The trend in average sentiment can be used to explain how an investor holding Capital can time the market purely based on public headlines and social activities around Capital One Financial. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Capital One's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Capital One and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Capital One news discussions. The higher the estimate score, the more favorable the investor's outlook on Capital One.
Capital One Maximum Pain Price Across April 17th 2025 Option Contracts
Capital One's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Capital One close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Capital One's options.
Capital One Corporate Directors
| Francois LocohDonou | Independent Director | Profile | |
| Christine Detrick | Independent Director | Profile | |
| Aparna Chennapragada | Independent Director | Profile | |
| Pierre Leroy | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Capital One Financial. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Consumer Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Capital One. If investors know Capital will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Capital One listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.6 | Dividend Share 2.4 | Earnings Share 11.58 | Revenue Per Share | Quarterly Revenue Growth 0.135 |
The market value of Capital One Financial is measured differently than its book value, which is the value of Capital that is recorded on the company's balance sheet. Investors also form their own opinion of Capital One's value that differs from its market value or its book value, called intrinsic value, which is Capital One's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Capital One's market value can be influenced by many factors that don't directly affect Capital One's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Capital One's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Capital One is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Capital One's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.