Shares of Capital One Financial closed at $49.29 Thursday, returning 17% year-to-date.
The shares trade for 8.5 times the consensus 2012 EPS estimate of $5.79.
The company's 2011 ROE was 11.07%, according to HighlineFI.Of course, the biggest news for Capital One is the Federal Reserve's long-delayed approval late Tuesday of the company's $9 billion deal to purchase ING Direct (USA) from ING Groep (ING), for roughly $9 billion in cash and stock. The approval of the ING deal sets the stage for the Office of the Comptroller of the Currency to approve Capital One's next major deal, to purchase HSBC's U.S> (HBC) credit card portfolio, for $2.6 billion, which is expected to include a common equity raise of up to $1.25 billion. Sakhrani rates Capital One "Outperform," with a $62 price target, and estimates the company will earn $5.64 a share in 2012, followed by EPS of $5.53 in 2013. The analyst noted that Capital One's managed credit card portfolio average loan balances of $85.9 billion in January were flat from December, but rose 8% from a year earlier. Interested in more on Capital One? See TheStreet Ratings' report card for this stock.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV