Stock Price & Analysis

Based on the provided data and context, here's my analysis of Capital One (COF) stock:

Market Performance & Technical Analysis

The stock is currently trading at $203.21, down 1.66% in the latest session. The stock has shown strong momentum over the past year, outperforming both the S&P 500 and Financial Select Sector SPDR Fund with a 38% gain.

Recent Developments & Catalysts

1. Strategic Acquisition: COF received approval for its $35.3 billion acquisition of Discover Financial Services, expected to close in early 2025. This will make COF the second-largest player in the credit card business.

2. Strong Financial Performance: Q4 2024 showed solid results with:

• Total revenue: $10.2 billion
• Net income: $1.1 billion ($2.67 per share)
• Significant improvement from $706 million ($1.67 per share) year-over-year

Analyst Sentiment

Recent analyst actions show strong bullish sentiment:

• UBS: Upgraded to Strong Buy with $235 target (30.3% upside)
• Truist Securities: Initiated Strong Buy with $229 target
• Wells Fargo: Maintained Buy with $210 target

Risk Factors

1. CFPB Litigation: COF faces a lawsuit alleging $2 billion in lost interest charges to consumers.
2. Regulatory Environment: Changes in CFPB leadership and potential policy shifts could impact operations.
3. Market Conditions: Rising trade tensions and protectionist policies could affect investment flows.

Conclusion

SELL recommendation for the short term. While COF has strong fundamentals and positive long-term catalysts, several factors suggest taking profits now:

1. The stock is near analyst price targets
2. Recent regulatory uncertainties with CFPB
3. Technical indicators showing overbought conditions
4. Trading at premium valuations compared to historical averages

Consider re-entering at lower levels around the $185-190 range.

Based on the provided data and market analysis, here's the price prediction for Capital One Financial (COF) stock in 2025:

Capital One stock is projected to reach $235-245 by end of 2025, driven by the successful integration of its $35.3 billion Discover Financial Services acquisition and continued strong performance in its credit card business. The company's solid Q4 2024 performance with $10.2 billion revenue and improving credit trends supports this bullish outlook. Recent regulatory changes under the new administration are expected to create a more favorable environment for financial institutions, potentially boosting COF's profitability further.

The S1 support level for COF Stock is $198.48 ,The R1 resistant level for COF Stock is $207.27.

As of the end of day on 2025-02-11, the price of COF Stock was $199.36.

The target price for COF Stock according to analyst rating is 213.07, with the highest price target at 257.00 and the lowest at 165.00. Analysts have a Moderate Buy rating on COF Stock overall.

The market cap of COF is $76.3B.

Based on the provided data and current market context, here's an analysis of whether COF is overvalued:

Valuation Analysis Capital One's Q4 2024 P/E ratio of 15.39x is relatively moderate compared to historical levels, showing an upward trend from 11.66x in Q1 2024. The EV/EBITDA ratio has increased to 15.54x from 11.22x, suggesting expanding valuation multiples.

Growth & Profitability The company demonstrated solid revenue growth, with Q4 2024 revenue reaching $9.79 billion, up from $9.05 billion in Q1 2024. However, net income showed volatility, declining to $1.02 billion in Q4 from $1.69 billion in Q3 2024.

Analyst Sentiment Recent analyst actions are predominantly positive. UBS upgraded COF to Strong Buy with a $235 price target, citing increased likelihood of successful Discover merger. Multiple analysts have raised their price targets, with targets ranging from $200-$235, suggesting 9-30% upside potential.

Technical Analysis The stock has shown strong momentum, gaining 29.5% over the past three months and outperforming the broader market. This performance is supported by improving credit conditions and positive sentiment around the pending Discover acquisition.

Conclusion At current levels, COF is not overvalued given its strong fundamentals, strategic growth initiatives through the Discover merger, and positive analyst outlook. The valuation metrics remain reasonable relative to growth prospects and industry peers.

Capital One Financial Corporation is a diversified financial service holding company. The Company offers a range of financial products and services to consumers, small businesses and commercial clients through digital channels, branch locations, cafes, and other distribution channels. The Company operates through three segments: Credit Card, Consumer Banking and Commercial Banking. The Credit Card segment consists of its domestic consumer and small business card lending, and international card businesses in the United Kingdom and Canada. The Consumer Banking segment consists of its deposit gathering and lending activities for consumers and small businesses, and national auto lending. The Commercial Banking segment consists of its lending, deposit gathering, capital markets and treasury management services to commercial real estate and commercial and industrial customers. Its subsidiary includes Capital One, National Association, and Capital One Bank (USA), National Association.

Based on the provided data and market analysis, here is the price prediction for Capital One (COF) stock by 2030:

Capital One stock is projected to reach $385-395 by 2030, driven by its successful integration of Discover Financial acquisition and strengthened position as the second-largest credit card player. The strategic $35.3 billion Discover acquisition in early 2025 significantly enhances COF's market competitiveness and scale advantages.

The bank's solid financial performance with $10.2 billion revenue and improving credit trends in Q4 2024 demonstrates strong execution capability. Additionally, the banking sector's improved capitalization with 99% of banks meeting regulatory requirements provides a stable foundation for growth.

COF has a total of 51987 employees.