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

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to assist investors in selecting stocks with the highest potential to outperform the market in the short term [3] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each targeting different investment strategies [4][5][6][7] - Value Score focuses on identifying undervalued stocks using financial ratios [4] - Growth Score evaluates a company's future earnings and financial health to find sustainable growth opportunities [5] - Momentum Score capitalizes on price trends and earnings outlook changes to identify favorable buying opportunities [6] - VGM Score combines all three styles to highlight stocks with the best overall potential [7] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify stock selection [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks (4 or 5) should be avoided, even if they have high Style Scores, due to declining earnings forecasts [11][12] Company Spotlight: Capital One (COF) - Capital One Financial Corporation specializes in consumer and commercial lending and deposit origination, providing a range of financial products and services [13] - COF holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A and a Momentum Style Score of A, indicating strong performance potential [14] - The stock has increased by 16.5% over the past four weeks, with positive earnings estimate revisions from analysts for fiscal 2024 [14] - Given its solid rankings and scores, COF is recommended for investors' consideration [15]