McLean, Virginia-based Capital One Financial Corporation (COF) operates as a bank holding company focusing on consumer and commercial lending as well as deposit origination. With a market cap of $77.1 billion, Capital One operates through Credit Card, Consumer Banking, and Commercial Banking segments.
Capital One has significantly outperformed the broader market over the past year. COF stock has soared 49.6% over the past 52 weeks and 13.4% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 22.3% surge over the past year and 4% gains in 2025.
Zooming in further, Capital One has also outpaced the Fidelity Disruptive Finance ETF’s (FDFF) 30.8% gains over the past year and 5.8% returns on a YTD basis.
Capital One’s stock prices soared 4% in the trading session after the release of its impressive Q4 results on Jan. 21. Driven by the solid business momentum and continued growth in interest income, the company reported a 7.2% year-over-year growth in total net revenues to $10.2 billion, exceeding the Street’s expectations by 32 basis points. Furthermore, the company has observed a notable growth in profitability, with its adjusted net income to shareholders surging 38.1% year-over-year to $1.2 billion and its non-GAAP EPS of $3.09 surpassing the consensus estimates by 16.2%.
For the current fiscal 2025, ending in December, COF is expected to deliver a robust 12.1% year-over-year growth in EPS to $15.65. However, the company has a mixed earnings surprise history. While it surpassed the Street’s bottom-line expectations twice over the past four quarters, it missed the estimates on two other occasions.
Among the 21 analysts covering the COF stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy,” one “Moderate Buy,” and 10 “Hold” ratings.
This configuration is notably more bullish than two months ago when only six analysts gave “Strong Buy” recommendations.
On Jan. 27, Truist Securities analyst Brian Foran reiterated a “Buy” rating on Capital One, while raising the price target to $257 which suggests a staggering 27.1% upside potential from current price levels.
Meanwhile, COF’s mean price target of $216.39 represents a 7% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
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