Analyst Review Alert: Capital One Financial Corp. (NYSE:COF)

Analysts are weighing in on how Capital One Financial Corp. (NYSE:COF), might perform in the near term. Wall Street analysts have a much less favorable assessment of the stock, with a mean rating of 2.4. The stock is rated as buy by 9 analysts, with 6 outperform and 12 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 25.00 analysts offering adjusted EPS forecast have a consensus estimate of $1.89 a share, which would compare with $1.50 in the same quarter last year. They have a high estimate of $2.00 and a low estimate of $1.78. Revenue for the period is expected to total nearly $6.28B from $5.67B the year-ago period.

For the full year, 27.00 Wall Street analysts forecast this company would deliver earnings of 7.54 per share, with a high estimate of $7.80 and a low estimate of $7.15. It had reported earnings per share of $7.07 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $25.48B versus 23.41B in the preceding year.

The analysts project the company to maintain annual growth of around 5.13% percent over the next five years as compared to an average growth rate of 10.90% percent expected for its competitors in the same industry.

Among the 24 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for COF is $82.06 but some analysts are projecting the price to go as high as $108.00. If the optimistic analysts are correct, that represents a 52 percent upside potential from the recent closing price of $70.87. Some sell-side analysts, particularly the bearish ones, have called for $59.00 price targets on shares of Capital One Financial Corp. (NYSE:COF).

In the last reported results, the company reported earnings of $1.50 per share, while analysts were calling for share earnings of $1.97. It was an earnings surprise of -23.90%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

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. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company offers various non-interest bearing and interest-bearing deposits, such as demand deposits, money market deposits, time deposits, negotiable order of withdrawal accounts, and savings accounts. It also provides credit card loans and installment loans; auto, home, and retail banking loans; and commercial and multifamily real estate, commercial and industrial, and small-ticket commercial real estate loans. In addition, the company offers credit and debit card products; online direct banking services; and treasury management and depository services. It serves consumers, small businesses, and commercial clients through the Internet and other distribution channels, as well as through branches located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and the District of Columbia. The company was founded in 1993 and is headquartered in McLean, Virginia. Capital One Financial Corporation (NYSE:COF) operates independently of Signet Banking Corp. as of February 28, 1995.