Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Capital One Financial ( COF) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Capital One Financial as such a stock due to the following factors:
- COF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $227.7 million.
- COF is down 3.2% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in COF with the Ticky from Trade-Ideas. See the FREE profile for COF NOW at Trade-Ideas 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 stock currently has a dividend yield of 1.6%. COF has a PE ratio of 10.6. Currently there are 17 analysts that rate Capital One Financial a buy, no analysts rate it a sell, and 6 rate it a hold. The average volume for Capital One Financial has been 2.8 million shares per day over the past 30 days. Capital One Financial has a market cap of $44.6 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.44 and a short float of 1.4% with 2.58 days to cover. Shares are up 0.6% year-to-date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. 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 largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.76, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- Net operating cash flow has significantly increased by 93.37% to $9,632.00 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 -63.64%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
- CAPITAL ONE FINANCIAL CORP's earnings per share declined by 7.4% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CAPITAL ONE FINANCIAL CORP reported lower earnings of $6.70 versus $7.05 in the prior year. This year, the market expects an improvement in earnings ($7.08 versus $6.70).
- You can view the full Capital One Financial Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.