Trade-Ideas LLC identified

Capital One Financial

(

COF

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Capital One Financial as such a stock due to the following factors:

  • COF has 11x the normal benchmarked social activity for this time of the day compared to its average of 3.23 mentions/day.
  • COF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $296.4 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on COF:

Capital One Financial Corporation operates as the bank holding company for the Capital One Bank (USA), National Association (COBNA); and Capital One, National Association (CONA), which provide various financial products and services in the United States, the United Kingdom, and Canada. The stock currently has a dividend yield of 2.7%. COF has a PE ratio of 8. Currently there are 11 analysts that rate Capital One Financial a buy, no analysts rate it a sell, and 7 rate it a hold.

TST Recommends

The average volume for Capital One Financial has been 3.2 million shares per day over the past 30 days. Capital One Financial has a market cap of $31.2 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.18 and a short float of 1.4% with 1.65 days to cover. Shares are down 16.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Capital One Financial as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 4.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.90, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Consumer Finance industry average. The net income increased by 3.0% when compared to the same quarter one year prior, going from $1,081.00 million to $1,114.00 million.
  • Net operating cash flow has significantly increased by 67.45% to $4,657.00 million when compared to the same quarter last year. In addition, CAPITAL ONE FINANCIAL CORP has also vastly surpassed the industry average cash flow growth rate of -30.07%.
  • CAPITAL ONE FINANCIAL CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CAPITAL ONE FINANCIAL CORP increased its bottom line by earning $7.59 versus $7.27 in the prior year. For the next year, the market is expecting a contraction of 6.4% in earnings ($7.11 versus $7.59).

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