{"id":44485,"date":"2023-08-04T12:20:20","date_gmt":"2023-08-04T16:20:20","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/what-to-expect-from-capital-one-stock\/"},"modified":"2023-08-04T12:20:22","modified_gmt":"2023-08-04T16:20:22","slug":"what-to-expect-from-capital-one-stock","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=44485","title":{"rendered":"What To Expect From Capital One Stock?"},"content":{"rendered":"<div>\n<p>Capital One\u2019s stock (NYSE: COF) has gained 22% YTD, as compared to the 19% increase in the S&amp;P500 over the same period. Further, at its current price of $113 per share, the stock is trading 4% below its fair value of $118 \u2013 Trefis\u2019 estimate for <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/COF\/no-login-required\/tKvIaBZ6\/Capital-One-COF-Valuation-Is-COF-Stock-Expensive-Or-Cheap-?fromforbesandarticle=trefis230804\">Capital One\u2019s valuation<\/strong><strong>. <\/strong>The company posted mixed results in the second quarter of 2023, with the earnings beating the consensus estimates but revenues missing the mark. It reported total revenues of $9.01 billion \u2013 up 9% y-o-y, mainly driven by an 11% rise in the noninterest revenues and a 9% growth in the net interest income. The NII mainly benefited from an increase in the total outstanding loans, partially offset by a slight drop in the net interest margin. On the expense front, the provisions for credit losses witnessed an unfavorable increase from $1.08 billion to $2.49 billion. It eroded all the positive effects of growth in the top line and resulted in an adjusted net income of $1.35 billion \u2013 down 31% y-o-y.<\/p>\n<p>The top line improved 9% y-o-y to $17.92 billion in the first half of FY 2023, driven by an 11% rise in the net interest income and a 4% growth in the non-interest revenues. The NII was up due to higher average interest-earning assets and improvement in the net interest margin (for the first two-quarters). That said, the provisions figure jumped almost 200% from $1.76 billion to $5.28 billion. Overall, it led to a 48% y-o-y drop in the adjusted net income to $2.24 billion.<\/p>\n<p>Moving forward, we expect the Q3 results to follow the same trend as the second quarter. Altogether<strong>, <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/COF\/no-login-required\/joCVzk8a\/Capital-One-Revenues-How-Does-COF-Make-Money-?fromforbesandarticle=trefis230804\">Capital One revenues<\/strong> are forecast to touch $36.55 billion in FY2023. Additionally, COF\u2019s net income margin is likely to decline from 20.6% to 12.6% in the year, leading to an adjusted net income of $4.61 billion and an annual GAAP EPS of $12.45. This coupled with a P\/E multiple of just above 9x will lead to a valuation of $118.<\/p>\n<p>What if you\u2019re looking for a portfolio that aims for long-term growth? Here\u2019s a <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/PORTFOLIOS\/no-login-required\/wx9hwxU6\/Value-Portfolio-with-407-Return-Since-2016-vs-100-for-S-P-500?fromforbesandarticle=trefis230804\">value portfolio<\/strong> that\u2019s done much better than the market since 2016.<\/p>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad><\/p>\n<p>Invest with <strong>Trefis <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/dashboards.trefis.com\/data\/companies\/PORTFOLIOS\/no-login-required\/M7MacZNG?fromforbes\">Market Beating Portfolios<\/strong><\/p>\n<p>See all <strong>Trefis <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/dashboards.trefis.com\/data\/price-estimates?fromforbes\">Price Estimates<\/strong><\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/greatspeculations\/2023\/08\/04\/what-to-expect-from-capital-one-stock\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Capital One\u2019s stock (NYSE: COF) has gained 22% YTD, as compared to the 19% increase in the S&amp;P500 over the same period. Further, at its current price of $113 per share, the stock is trading 4% below its fair value of $118 \u2013 Trefis\u2019 estimate for Capital One\u2019s valuation. The company posted mixed results in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":44486,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-44485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What To Expect From Capital One Stock? | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Capital One\u2019s stock (NYSE: COF) has gained 22% YTD, as compared to the 19% increase in the S&amp;P500 over the same period. 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