This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 First Quarter Bank Stock Winners

6. Capital One

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Shares of Capital One (COF - Get Report) of McLean, Va., closed at $51.96 Thursday, returning 22% during the first quarter.

Chris Brendler of Stifel Nicolaus told TheStreet that the company would be "one of the primary beneficiaries," during the first quarter, of ongoing improvements in credit quality.

Data provided by SNL Financial shows the card industry continuing to improve, although it faces challenges as consumers cut their level of revolving debt. Loss rates for all six major lenders have declined over the past year, with February credit card master trust data showing that American Express (AXP - Get Report) continued to lead with the lowest annualized loss rate of 4.24% in February, followed by Capital One Financial 5.18%; Discover (DFS - Get Report), at 5.79%; JPMorgan Chase (JPM - Get Report), at 6.21%; Citigroup (C - Get Report) at 7.95%; and Bank of America (BAC - Get Report), with the worst loss rate of 8.85%.

As discussed in greater detail in TheStreet's Credit Card Winners, Capital One is in the middle of the pack, in terms of credit card lenders' net portfolio yields. The net portfolio yield is the aggregate yield on a lender's card portfolio, less the annualized loss rate.

Among the big six U.S. card lenders, American Express was in the lead with a net portfolio yield of 17.88% in February; followed by Discover Financial, in second place with a net portfolio yield of 17.49%. Bank of America was next, with a net portfolio of 15.10%; followed by Capital One at 13.39%, JPMorgan at 12.53%; and Citigroup, in last place, at 11.60%.

Capital One is set to report first-quarter results on April 21, with a consensus earnings estimate of $1.48 a share. For all of 2011, the company is expected to earn $5.43 a share, followed by $5.46 a share in 2012.

Out of 22 analysts covering Capital One, eight rate the shares a buy, 12 have neutral ratings and two analysts recommend investors sell the shares.
5 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AXP $65.43 0.00%
BAC $14.56 0.00%
C $46.28 0.00%
COF $72.39 0.00%
DFS $56.27 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs