Capital One stock is underperforming compared to peers and market, with inconsistent performance.

From NASDAQ.: 2024-07-02 22:53:56

Capital One’s stock (NYSE: COF) has gained 6% YTD, while its peer Discover Financial (NYSE: DFS) was up 15% YTD. Despite trading 8% below its estimated fair value of $150 per share, COF stock has shown inconsistent performance recently. The company posted mixed results in Q1 2024, with total revenues up 6% y-o-y to $9.4 billion.

In Q1, COF’s net interest income increased by 4%, while noninterest revenues rose by 11%. Adjusted net income grew by 35% y-o-y to $1.2 billion. For FY 2023, total revenues increased by 7% y-o-y to $36.8 billion. However, adjusted net income decreased by 35% y-o-y to $4.6 billion due to higher provisions for credit losses.

For Q2, consensus estimates predict revenues of $9.54 billion and earnings of $3.40 for COF. Full-year 2024 revenues are expected to reach $38.46 billion, with adjusted net income around $4.96 billion. These projections lead to a valuation of $150 per share. COF’s returns in July 2024 stand at 0%, with a YTD return of 6% and a total return of 59% from 2017-2024.



Read more at NASDAQ.: Capital One Stock Is Trailing S&P500 By 8% YTD, What To Expect?