NEW YORK (TheStreet) -- Shares of Capital One Financial Corp. (COF - Get Report) are down -0.99% to $78.01 in pre-market trade after the financial services company said it received subpoenas from the New York District Attorney's Office as part of a money laundering investigation.
The request relates to "certain check-casher clients of the commercial-banking business," the company said in a regulatory filing.
Must Read: Warren Buffett's 25 Favorite Stocks
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Consumer Finance industry average. The net income increased by 7.8% when compared to the same quarter one year prior, going from $1,108.00 million to $1,194.00 million.
- The debt-to-equity ratio is somewhat low, currently at 0.89, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- CAPITAL ONE FINANCIAL CORP reported flat earnings per share in the most recent quarter. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CAPITAL ONE FINANCIAL CORP increased its bottom line by earning $7.31 versus $6.70 in the prior year. This year, the market expects an improvement in earnings ($7.63 versus $7.31).
- You can view the full analysis from the report here: COF Ratings Report