Capital One Financial Corp

COF-N

NYSE:COF

56.72
3.81 (7.20%)
Capital One Financial Corporation is a bank holding company specializing in credit cards, auto loans, banking and savings products headquartered in McLean, Virginia.
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Analysis and Opinions about COF-N

Signal
Opinion
Expert
TOP PICK
TOP PICK
June 5, 2017

*Short*. The Company derives a good chunk of its revenue through its credit card business of about 40%, and its auto financing business, another 20%. Of that business, approximately one 3rd is subprime. One weak link in the US market is the subprime market where delinquencies and some of the charges are going to increase. Dividend yield of 2.1%. Thinks the stock can trade down to $59. (Analysts’ price target is $98.)

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*Short*. The Company derives a good chunk of its revenue through its credit card business of about 40%, and its auto financing business, another 20%. Of that business, approximately one 3rd is subprime. One weak link in the US market is the subprime market where delinquencies and some of the charges are going to increase. Dividend yield of 2.1%. Thinks the stock can trade down to $59. (Analysts’ price target is $98.)

COMMENT
COMMENT
March 21, 2017

You have to start with a top-down analysis. Do you like financials? He can make a great case that financials will be much higher 5-10 years down the road. Remember, this is one sector that has never come back from the peaks that they held before the 2008 subprime crisis, so valuations generally are low. Also, it is one of the few groups that can benefit from higher interest rates. He feels this one has an excellent franchise. They are with the credit cards which is a growing way people pay worldwide. They also have some great individual banks.

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You have to start with a top-down analysis. Do you like financials? He can make a great case that financials will be much higher 5-10 years down the road. Remember, this is one sector that has never come back from the peaks that they held before the 2008 subprime crisis, so valuations generally are low. Also, it is one of the few groups that can benefit from higher interest rates. He feels this one has an excellent franchise. They are with the credit cards which is a growing way people pay worldwide. They also have some great individual banks.

PAST TOP PICK
PAST TOP PICK
December 24, 2015

(Top Pick Jan 9/15, Down 5.91%) He thinks you will have significant credit card growth in the US next year. There is potential for dividend growth.

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(Top Pick Jan 9/15, Down 5.91%) He thinks you will have significant credit card growth in the US next year. There is potential for dividend growth.

TOP PICK
TOP PICK
June 24, 2015

Decent sized regional US bank with credit cards being a big part of their business. Attractive share price. Trading at about 11X forward earnings. When and if short-term interest rates go up in the US, earnings will grow at a very decent clip. A very strong bank with a very attractive position in the credit card industry. Dividend yield of 1.79%.

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Decent sized regional US bank with credit cards being a big part of their business. Attractive share price. Trading at about 11X forward earnings. When and if short-term interest rates go up in the US, earnings will grow at a very decent clip. A very strong bank with a very attractive position in the credit card industry. Dividend yield of 1.79%.

TOP PICK
TOP PICK
January 9, 2015

This is a play on an increasing consumer spending and loan growth. It has been really hard for the US consumer to get a loan unless they had a pristine credit score. Credit card defaults and mortgage defaults have been the lowest they have ever been. Credit scores at origination have been as high as they have ever been. Eventually, as unemployment continues to get wound down and as consumers feel better because consumer confidence is high, there should be an acceleration of borrowing which plays right into this company. Valuation is reasonable and the balance sheet is in good shape. You should see outsized dividend growth going forward as they start to execute on their buybacks and return capital to shareholders. Credit card receivables in the US are still 15% lower than they were in 2007. Yield of 1.5%.

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This is a play on an increasing consumer spending and loan growth. It has been really hard for the US consumer to get a loan unless they had a pristine credit score. Credit card defaults and mortgage defaults have been the lowest they have ever been. Credit scores at origination have been as high as they have ever been. Eventually, as unemployment continues to get wound down and as consumers feel better because consumer confidence is high, there should be an acceleration of borrowing which plays right into this company. Valuation is reasonable and the balance sheet is in good shape. You should see outsized dividend growth going forward as they start to execute on their buybacks and return capital to shareholders. Credit card receivables in the US are still 15% lower than they were in 2007. Yield of 1.5%.

PAST TOP PICK
PAST TOP PICK
December 1, 2011

(A Top Pick July 20/11. Down 8%.) Sold Aug Puts for $1.05. Stock took a severe drop along with a lot of stocks. Could have bought the Put back but because of volatility, the price increased. A way to get around it is to Short the stock, which he did.

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(A Top Pick July 20/11. Down 8%.) Sold Aug Puts for $1.05. Stock took a severe drop along with a lot of stocks. Could have bought the Put back but because of volatility, the price increased. A way to get around it is to Short the stock, which he did.

TOP PICK
TOP PICK
July 20, 2011
Selling August Puts for $1.05. Great earnings momentum. Looking for a 3.1% yield.
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Selling August Puts for $1.05. Great earnings momentum. Looking for a 3.1% yield.
DON'T BUY
DON'T BUY
December 9, 2009
Would still avoid this one. Their earnings power has been greatly diminished. There has been a lot of dilution. Trading at about 20X next year's earnings. Still have consumer problems. He switched from this to MasterCard (MA-N).
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Would still avoid this one. Their earnings power has been greatly diminished. There has been a lot of dilution. Trading at about 20X next year's earnings. Still have consumer problems. He switched from this to MasterCard (MA-N).
COMMENT
COMMENT
December 20, 2007
Cheap, cheap. Model price is $63.36, a 38% positive differential. He presumes everyone fears what they have and as they are not disclosing what they have so the market is punishing them. Will be looking closely at this in January.
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Cheap, cheap. Model price is $63.36, a 38% positive differential. He presumes everyone fears what they have and as they are not disclosing what they have so the market is punishing them. Will be looking closely at this in January.
BUY
BUY
December 19, 2007
Forward PE of about 6.75. They have a great franchise and a great brand. They have had an ability to pick the people they send a credit card to. Default statistics have been better than the market. Not for the faint of heart but if you are willing to take some risks it is worth it.
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Forward PE of about 6.75. They have a great franchise and a great brand. They have had an ability to pick the people they send a credit card to. Default statistics have been better than the market. Not for the faint of heart but if you are willing to take some risks it is worth it.
BUY
BUY
November 20, 2007
(Market Call Minute) – Keeping his eye on this one. Thinks it’s good for the long term. The model price is $68.66, a 33% positive upside.
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(Market Call Minute) – Keeping his eye on this one. Thinks it’s good for the long term. The model price is $68.66, a 33% positive upside.
DON'T BUY
DON'T BUY
May 2, 2007
Not much value there. Interest rates are higher in US. Can get better value elsewhere.
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Not much value there. Interest rates are higher in US. Can get better value elsewhere.
DON'T BUY
DON'T BUY
March 8, 2007
He has a model price of $71.40, giving it a negative differential of 4.5%. Doesn't have the US financials in his portfolio right now.
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He has a model price of $71.40, giving it a negative differential of 4.5%. Doesn't have the US financials in his portfolio right now.
TOP PICK
TOP PICK
May 14, 2004
Financials have been under pressure because of a rising interest rate environment. Trading at less than 10 X forward numbers. Will benefit as rates continue to go up as people will not be able to refinance their mortgages as much.
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Financials have been under pressure because of a rising interest rate environment. Trading at less than 10 X forward numbers. Will benefit as rates continue to go up as people will not be able to refinance their mortgages as much.
TOP PICK
TOP PICK
April 23, 2004
Somewhat controversial, but it is one that people are buying. Smart Money is always more right than most processes.
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Somewhat controversial, but it is one that people are buying. Smart Money is always more right than most processes.
Showing 1 to 15 of 17 entries

Capital One Financial Corp(COF-N) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for Capital One Financial Corp is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Capital One Financial Corp(COF-N) Frequently Asked Questions

What is Capital One Financial Corp stock symbol?

Capital One Financial Corp is a American stock, trading under the symbol COF-N on the New York Stock Exchange (COF). It is usually referred to as NYSE:COF or COF-N

Is Capital One Financial Corp a buy or a sell?

In the last year, there was no coverage of Capital One Financial Corp published on Stockchase.

Is Capital One Financial Corp a good investment or a top pick?

Capital One Financial Corp was recommended as a Top Pick by Jim McGovern on 2017-06-05. Read the latest stock experts ratings for Capital One Financial Corp.

Why is Capital One Financial Corp stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Capital One Financial Corp worth watching?

In the last year, there was no coverage of Capital One Financial Corp published on Stockchase.

What is Capital One Financial Corp stock price?

On 2020-04-08, Capital One Financial Corp (COF-N) stock closed at a price of $56.72.