COF stock: buy or sell
Jan 25th, 2021
COF stock brief
- Counting last Friday, it's been 3 consecutive sessions in red for Capital One. Price closed last Friday at $105.34 after collapsing a -2.95%.
- Capital One is presenting its earnings report on Tuesday
- The stock is configuring an uptrend pattern since March 2020, when it bottomed at $37.64. This uptrend marked a 179.86% gain
- JPMorgan Chase & Co. and Oppenheimer published strong bullish ratings for Capital One last Tuesday, with an average target of $132.50
Should I buy Capital One stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $COF stock a buy?
In the current situation of Capital One there is not any eligible buy setup. This doesn't mean we expect a selloff for $COF in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Capital One stock?
Knowing when to sell a stock is even harder than knowing when to buy it. In the same way as when we have to buy shares, deciding when is appropiate to sell is not a whimsy decision, and we must use our own trading style. When selling, as well as buying, detailed setups are very easy to follow but are only applicable for selling stocks you already own, not for shorting $COF stock
As a rule of thumb, you should not keep an open trade that yields greater losses than those expected upon the buy. The moment to sell your stock always has to be determined by the stop-loss (automatic or manual)
Is it time to sell Capital One stock?
Currently, Capital One stock doesn't match any of our preferred sell setups, so if you hold Capital One stock and your operation is in profit probably is not time to sell now
Capital One ratings
In the last month, 5 brokerage ratings were published for Capital One. General sentiment is bullish, with 5 out of 5 publishing positive outlooks
|Jan 4th, 2021|
|Wells Fargo & Company||Buy|
|Jan 5th, 2021|
|Deutsche Bank Aktiengesellschaft|| Neutral → |
|Jan 19th, 2021|
|JPMorgan Chase & Co.||Buy|
Capital One stock analysis
Capital One shares started an uptrend in March 2020, and grew a gorgeous 179.86%. The chart shows higher peaks and higher troughs, and along the way gave some entry points for those who wanted to invest. Latest low was last October, when price bounced at $70.69. Currently, it swings in a consolidation between its last top ($115.48) and its last bottom ($70.69)
Supports and resistances
The current resistances are:
The current supports are:
Since the price surpassed the upper band on January 14, the price sliced by 8.78%
Relative strength index
The RSI dropped below the overbought level of 70 last Wednesday after just crossing to the overbough zone for 1 day (weak signal). The RSI reading last Friday was 53.76
Capital One stock price history
Capital One started trading on Nov 16th, 1994 priced at $3.94 per share1. Since then, COF stock has risen by 2,573.60%, with an average of 98.98% per year. If you had invested thousand dollars in Capital One stock on the IPO, it would be valued $26,736.04 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Capital One stock
Nobody knows how much a share will be priced in the future. However, many stock price forecasts are posted every day by banks, financial institutions and independent analysts.
The following table shows the price predictions released by analysts for the last 30 days. Again, these forecasts are not direct recommendations for individual investors and must not be trusted blindly.
Averaging all price targets exposed below, the forecasted price for Capital One stock is $129.50. That is a 22.94% than the last price ($105.34).
|Brokerage firm||Price target|
|Jan 4th, 2021|
|Barclays||$91.00 → $133.00|
|Wells Fargo & Company||$100.00 → $120.00|
|Jan 5th, 2021|
|Deutsche Bank Aktiengesellschaft||Not available|
|Jan 19th, 2021|
|JPMorgan Chase & Co.||$89.00 → $135.00|
|Oppenheimer||$105.00 → $130.00|
Earnings and financials
COF ($COF) presents Q4 earnings report on Tuesday. Market forecasts of $2.86, compared to previous quarter that was $5.06.
Stocks releasing earnings usually show a much higher volatility in price action while market is closed and the day after. This volatility may imply that your stop-loss orders may become ineffective or may trigger far from your aimed price. Capital One's website probably has further details.
Last October, Capital One Financial Corporation ($COF) reported adjusted EPS for that highly surpassed Wall St. expectations. Quarterly EPS was $5.06 per share versus the estimated $2.01. This Q3 report means an earnings surprise of 151.74%. Turnover was $7.4 billion in contrast to $6.7 billion forecasted by market consensus.In comparing, the EPS for the same quarter last year was $2.69, so current EPS is a gain of 88.10%. Revenue skyrocketed a 26.43% on an annualized basis in the , from $55.8B to $70.5B last quarter.
Capital One performance
|Capital One ($COF)||10.40%||41.20%||61.50%|
Disclaimer:The opinions given in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have any knowledge of the specific conditions of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are posted for educative purposes only
|Friday, January 22nd, 2021|
|Day range||$103.83 - $107.41|
|Average true range||$4.66|
|50d mov avg||$95.96|
|100d mov avg||$85.10|
|200d mov avg||$74.38|
|Earnings date||January 26th, 2021|