Capital One Financial Corp (NYSE:COF) Screened by Minervini Trend Template and High Growth Momentum

Capital One Financial Corp (NYSE:COF) has surfaced through a screening methodology combining Mark Minervini’s rigorous Trend Template with a High Growth Momentum (HGM) filter. This dual-pronged approach identifies companies not only exhibiting strong technical strength,demonstrating sustained uptrends and healthy price consolidation,but also displaying fundamental momentum through accelerating earnings, sales growth, and positive analyst revisions. The strategy targets stocks positioned for potential outperformance by aligning strong price action with underlying business acceleration.

Technical Strength: Adherence to the Minervini Trend Template

COF satisfies all critical technical criteria outlined in Minervini’s Trend Template, which is designed to pinpoint stocks in powerful, established uptrends (Stage 2). This systematic approach filters out weaker securities and focuses capital on market leaders.

• Price Above Key Moving Averages: The current price of $214.62 trades well above the rising 50-day ($211.39), 150-day ($194.56), and 200-day ($191.36) simple moving averages. This alignment across multiple timeframes confirms a strong bullish trend.
• Moving Average Alignment and Slope: The 50-day MA resides above both the 150-day and 200-day MAs, a bullish configuration indicating accelerating momentum. Crucially, all three major moving averages are trending upward, confirming sustained buying pressure and long-term strength.
• Proximity to 52-Week Highs: Trading just 7.7% below its 52-week high of $232.45, COF demonstrates the characteristic of a market leader that is within striking distance of new highs. This is a hallmark of Minervini’s strategy, which posits that stocks near their highs often have the momentum to continue advancing.
• Significant Recovery from Lows: The current price sits 63% above its 52-week low of $131.55, indicating a powerful recovery trend and substantial investor confidence.
• Superior Relative Strength: With a ChartMill Relative Strength (CRS) score of 89.27, COF is outperforming nearly 90% of all stocks in the market. High relative strength is a cornerstone of the strategy, identifying securities that are leaders, not laggards, often before the broader market recognizes their strength.

Fundamental Momentum: Qualifying for High Growth Investors

Beyond its impeccable technicals, COF exhibits the fundamental acceleration that high-growth investors seek. The HGM rating of at least 4 reflects strong performance across earnings, sales, and future expectations.

• Explosive Earnings Growth: The most recent quarter shows a staggering year-over-year EPS growth of 74.5%, a significant acceleration from the previous quarter's 26.5% growth. This surge in profitability is a primary catalyst that attracts institutional attention, a key tenet of Minervini's SEPA methodology which states that "Big Earnings Attract Big Attention."
• Strong Sales Expansion: Revenue growth is equally impressive, with the last quarter surging 31.4% year-over-year. This top-line growth provides a solid foundation for sustained earnings momentum and is a critical filter for identifying companies with genuine business expansion, not just cost-cutting.
• Consistent Earnings Surprises: COF has beaten EPS estimates in all of the last four quarters, with an average beat of 20.5%. A consistent history of exceeding expectations often leads analysts to upwardly revise future estimates, creating a positive feedback loop that can fuel further price appreciation.
• Strong Annual Performance: On a trailing twelve-month (TTM) basis, EPS has grown 31.4%, highlighting a strong and sustained trend of improving profitability.
• Positive Analyst Revisions: While next-quarter EPS estimates have been trimmed slightly (-7.6%), analysts have significantly raised their revenue forecasts for next year by 27.7% over the past three months. This indicates growing optimism about the company’s top-line potential and future market position.

Technical Analysis Overview and Trading Setup

The provided technical report awards COF a perfect rating of 10/10, highlighting its exceptional technical health. The stock is in a confirmed uptrend on both a short and long-term basis. The report also notes a high setup rating of 8/10, indicating the stock is currently in a consolidation phase within its larger uptrend, which may present a potential entry opportunity. Key support is identified near $213.77, with resistance waiting just above at $220.91. A detailed analysis of these levels and a sample trade setup can be found in the full technical report.

For investors seeking other opportunities that meet this stringent combination of strong technical trends and high fundamental growth momentum, the screening methodology that identified COF can be explored further. This screen is updated regularly to uncover new candidates.

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Disclaimer: This is not investment advice. The content provided is for informational and educational purposes only. All investment decisions carry risk, and individuals should conduct their own research or consult with a qualified financial advisor before making any investment decisions.