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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight 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 sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of B. Compared to the Financial - Consumer Loans industry's P/E of 9.9X, shares of Capital One are trading at a forward P/E of 12.1X. COF also has a PEG Ratio of 1.1, a Price/Cash Flow ratio of 8.1X, and a Price/Sales ratio of 1.4X.
A company's earnings performance is important for value investors as well. For fiscal 2025, five analysts revised their earnings estimate higher in the last 60 days for COF, while the Zacks Consensus Estimate has increased $0.10 to $15.53 per share. COF also holds an average earnings surprise of 11.2%.
Investors should take the time to consider COF for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive 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).