Why Capital One (COF) is a Top Value Stock for the Long-Term

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

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 is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 13.8X for the current fiscal year compared to the Financial - Consumer Loans industry's P/E of 11.8X. Additionally, COF has a PEG Ratio of 1.4 and a Price/Cash Flow ratio of 8.6X. Value investors should also note COF's Price/Sales ratio of 1.4X.

A company's earnings performance is important for value investors as well. For fiscal 2024, nine analysts revised their earnings estimate higher in the last 60 days for COF, while the Zacks Consensus Estimate has increased $0.80 to $13.54 per share. COF also holds an average earnings surprise of 1.5%.

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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