On Jul 6, Zacks Investment Research upgraded
Capital One Financial Corp.
) to a Zacks Rank #1 (Strong Buy).
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CAPITAL ONE FIN (COF): Free Stock Analysis
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Why the Upgrade?
Capital One has been witnessing rising earnings estimates
following the announcement of a new share repurchase program,
hike in dividend and better-than-expected first-quarter results.
Moreover, this regional bank has a long-term earnings growth
forecast of 8.0%.
On Jul 2, Capital One announced a share repurchase authorization
of up to $1.0 billion, subsequent to the Federal Reserve's
approval of its capital plan in Mar 2013. However, the company
will be allowed to undertake the repurchase program after it
successfully completes the sale of Best Buy Co.'s credit-card
). The company expects this deal to close in the third quarter of
Further, on May 2, Capital One hiked its quarterly dividend by
500% to $0.30, which was paid on May 23 to shareholders of record
as on May 13. Moreover, in Apr 2013, the company's
first-quarter 2013 earnings easily surpassed the Zacks Consensus
Estimate, driven by a fall in operating expenses, partially
offset by decline in revenues.
Moreover, during the last 60 days, the Zacks Consensus Estimate
for 2013 increased by a penny to $6.57 per share. For 2014, the
Zacks Consensus Estimate inched up 0.3% to $6.69 per share over
the same time period.
Other Stocks to Consider
Other stocks in the banking sector that are worth a look include
Cape Bancorp, Inc.
). Both these stocks carry a Zacks Rank #1.