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5 Cheap Bank Stocks With a Strong Earnings Future

3. Capital One Financial

Shares of Capital One Financial (COF - Get Report) closed at $55.10 Monday, returning 30% year-to-date, following a flat return during 2011.

The shares trade for just under eight times the consensus 2013 EPS estimate of seven dollars, and for 1.6 times tangible book value.

Jefferies analyst Daniel Furtado on Monday upgraded Capital One Financial to a "Buy" rating, while raising his price target for the shares by 44% to $72.00.

The analyst said that with its acquisition of ING Direct complete, with regulatory approval of the pending purchase of HSBC's (HBC) $30 billion U.S. card portfolio for a $2.6 billion premium having been received, and with last week's $1.25 billion common equity raise, "much of the downside risk to COF shares has been removed."

Furtado estimates that Capital One will earn $5.71 a share during 2012, followed by 2013 EPS of $7.16, with earnings results "likely to be choppy over the next few quarters as integration and acquisition expenses are recognized, and the accounting adjustments for the recent acquisitions are more well known."

Interested in more on Capital One Financial? See TheStreet Ratings' report card for this stock.
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SYM TRADE IT LAST %CHG
DRL $0.11 0.00%
BAC $17.88 0.00%
C $58.46 0.00%
COF $81.30 0.00%
JPM $68.53 0.00%

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