This Day On The Street
Continue to site
ADVERTISEMENT
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 Bank Stocks You Need to Watch During Earnings Season (Update 1)

1. Capital One Financial
Shares of Capital One Financial (COF) of McLean, Va., closed at $54.66 Friday, returning 30% year-to-date, following a flat return during 2011.

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

Get Adobe Flash player

The shares trade for 1.4 times tangible book value, and for eight times the consensus 2013 EPS estimate of $6.85. The consensus 2012 EPS estimate is $6.51.

Capital One will report its second-quarter results on July 19, with analysts expecting earnings of $1.35 a share, including one-time items springing from the company's purchase of HSBC's U.S. credit card portfolio in May. The company earned $2.72 a share during the first quarter -- including a bargain purchase gain of $1.16 a share from its February purchase of ING Direct -- and $1.97 a share during the second quarter of 2011.

Oppenheimer analyst Christ Kotowski rates Capital One "Outperform," with a $62 price target estimating the company will report second-quarter earnings of $1.21 a share, with full year EPS estimates of $7.77 for 2012 and $6.61 for 2003. Kotowski said on June 24 that he expects second-quarter results to be "messy and difficult to interpret because this quarter will include the HSBC acquisition and a full quarter of the ING Direct acquisitions."

The analyst said "we have made the decision to model the legacy COF business and the ING Direct impact, but we have excluded the HSBC acquisition from our number," adding that "in 1Q12 the company provided enough details in the press release to track the apples-to-apples changes, and we suspect this quarter will be no different."

Interested in more on Capital One Financial? See TheStreet Ratings' report card for this stock.

-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
11 of 11

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
Submit an article to us!
SYM TRADE IT LAST %CHG
BAC $16.11 0.00%
C $53.76 0.00%
JPM $63.61 0.00%
RF $9.83 0.00%
WFC $55.19 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs