Capital One Financial Corp.
) achieved a new 52-week high, touching $73.00 in the first hour
of the trading session on Dec 2, 2013. Nevertheless, the stock
closed the session at $72.10, registering a solid year-to-date
return of 19.5%. The trading volume for the session was 3.9
million shares, up from the 3-month average of 2.9 million.
Despite the strong price appreciation, this Zacks Rank #2 (Buy)
stock has plenty of upside left, given the estimate revisions
over the last 60 days and long-term earnings growth rate of 7.8%.
Impressive third-quarter 2013 results, which beat the Zacks
Consensus Estimate by 6.2%, along with improvement in
profitability ratios were the primary growth drivers for Capital
On Oct 18, Capital One reported third-quarter results. The
company's earnings of $1.86 per share outpaced the Zacks
Consensus Estimate of $1.77. The quarter witnessed
higher-than-expected revenues and improved profitability ratios.
However, higher expenses and deteriorating capital ratios were
dampeners. Meanwhile, asset quality was a mixed bag.
Further, in Sep 2013, Capital One completed the sale of
certain private label and co-branded credit card accounts worth
$6 billion to
). Hence, with the closure of the deal, the company resumed its
$1 billion share repurchase program.
AFFIL MANAGERS (AMG): Free Stock Analysis
CITIGROUP INC (C): Free Stock Analysis Report
CAPITAL ONE FIN (COF): Free Stock Analysis
EVERCORE PARTNR (EVR): Free Stock Analysis
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Over the last 60 days, 15 out of 16 estimates for 2013 have been
revised upward, lifting the Zacks Consensus Estimate by 3.4% to
$7.05 per share. For 2014, 11 of 17 estimates moved north over
the same time frame, causing the Zacks Consensus Estimate to rise
1.8% to $6.92 per share.
Other players in the finance industry that presently look
Affiliated Managers Group Inc.
Evercore Partners Inc.
). Both these stocks carry the same Zacks Rank as Capital