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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 $70.6 billion, Capital One operates through Credit Card, Consumer Banking, and Commercial Banking segments.

The financial sector giant has substantially outperformed the broader market over the past year. Capital One’s stock prices have shot up 39.5% on a YTD basis and 69.8% over the past year outperforming the S&P 500 Index’s ($SPX) 23.6% gains in 2024 and 30.6% returns over the past 52 weeks.

Narrowing the focus, Capital One has also outpaced Financial Select Sector SPDR Fund’s (XLF) gains of 33% in 2024 and 42.9% over the past year.

Shares of Capital One surged 5.2% in the trading session after the release of its impressive Q3 earnings on Oct. 24. The company delivered strong Q3 results reflecting topline growth in its domestic card and auto businesses and stable consumer credit results, which surpassed analysts’ expectations. Capital One reported a robust 8.9% year-over-year growth in net interest income after deducting provision for credit losses, reaching $5.6 billion. Although it saw a modest growth in adjusted EPS of 1.3% compared to the year-ago quarter to $4.51, it surpassed Wall Street’s bottom-line estimates by a staggering 21.9%, bolstering investors’ confidence.

More recently, COF stock prices soared over 15% on Nov. 6 attributable to the broader market rally post the announcement of Presidential election results.

For the current fiscal year, ending in December, analysts expect COF to report an 8% year-over-year growth in adjusted EPS to $13.52. The company’s earnings surprise history is disappointing. It missed analysts’ bottom-line estimates in three of the past four quarters while exceeding on another occasion.

COF stock has a consensus “Moderate Buy” rating overall. Among the 19 analysts covering the stock, seven recommend “Strong Buy,” one advises “Moderate Buy,” and 11 suggest a “Hold” rating.

This configuration has been consistent over the past months.

On Nov. 11, RBC Capital analyst Jon Arfstrom maintained a “Hold” rating while raising the price target to $190.

Although COF is trading above its mean price target of $176.41, the Street-high target of $208 suggests a potential upside of 13.7% from current price levels.

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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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.