Capital One Financial Corporation (COF) offers a range of financial products and services to consumers, small businesses and commercial clients through branches, the Internet and other distribution channels, and operates three primary business segments: Credit Card, Consumer Banking and Commercial Banking.
Consensus estimates call for the company to earn about $7.54 per share this year, up from $7.15 per share in 2015, and to go to net about $8.18 per share in 2017. Capital One has paid dividends to investors since 1995, and has increased its payments for 3 consecutive years.
During those last 3 years it has increased its dividends at an average rate of 66%.
Its Price to Earnings ratio (a measure of valuation) of 8.7 is 44.2% below its industry average, its Price to Book ratio of 0.6 is 77.8% below its industry average and its Price to Sales ratio of 1.3 is 58.0% below its industry average.
According to Morningstar, the stock is trading 34.9% below its Fair Value Estimate, making it very attractive for long-term investors.
Technically, COF also looks attractive, trading 32.8% below its 52 weeks high, while it is forming a price consolidation pattern between $58 and $92.
Vita Nelson, www.directinvesting.com, 914-925-0022, June 30, 2016