
Here's Why Capital One (COF) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Capital One (COF)
Headquartered in McLean, VA, Capital One Financial Corporation is primarily focused on consumer and commercial lending as well as deposit origination. Through its banking and non-banking subsidiaries, the company, founded in 1988, provides various financial products and services to consumers, small businesses and commercial clients in the United States.
COF boasts a Value Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Capital One are trading at a forward earnings multiple of 12.3X, as well as a PEG Ratio of 1.1, a Price/Cash Flow ratio of 8X, and a Price/Sales ratio of 1.4X.
Many value investors pay close attention to a company's earnings as well. For COF, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $15.25 per share for 2025. Per share COF boasts an average earnings surprise of 11.2%.
COF should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Capital One Financial Corporation (COF) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).