Why investors aren’t freaking out about Vonage Holdings Corp. (VG), Capital One Financial Corporation (COF)

9 analysts out of 10 Wall Street brokerage firms rate Vonage Holdings Corp. (NYSE:VG) as a Buy, while 0 see it as a Sell. The rest 1 describe it as a Hold. VG stock traded higher to an intra-day high of $10.31. At one point in session, its potential discontinued and the price was down to lows at $10.12. Analysts have set VG’s consensus price at $15.83, effectively giving it a 55.96% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $23 (up 126.6% from current price levels). VG has a 6.8% ROE, lower than the 9.25% average for the industry. The average ROE for the sector is 24.39%.

It is expected that in Mar 2019 quarter VG will have an EPS of $0.01, suggesting a -91.67% growth. For Jun 2019 is projected at $0.04. It means that there could be a -42.86% growth in the quarter. Yearly earnings are expected to rise by -40.63% to about $0.19. As for the coming year, growth will be about 5.26%, lifting earnings to $0.2. RSI after the last trading period was 57.05. VG recorded a change of 3.47% over the past week and returned 0.4% over the last three months while the VG stock’s monthly performance revealed a shift in price of 4.32%. The year to date (YTD) performance stands at 16.27%, and the bi-yearly performance specified an activity trend of -29.71% while the shares have moved -7.14% for the past 12 months.

Vonage Holdings Corp. (VG) currently trades at $10.15, which is lower by -0.2% its previous price. It has a total of 238.17 million outstanding shares, with an ATR of around 0.33. The company’s stock volume rose to 4.16 million, better than 2.83 million that represents its 50-day average. A 5-day increase of about 3.47% in its price means VG is now 16.27% higher on year-to-date. The shares have surrendered $43447.85 since its $14.73 52-week high price recorded on 11th of September 2018. Overall, it has seen a growth rate of -7.14 over the last 12 months. The current price per share is $2.24 above the 52 week low of $7.91 set on 24th of December 2018.

Vonage Holdings Corp. (NYSE:VG)’s EPS was $0.04 as reported for the December quarter. In comparison, the same quarter a year ago had an EPS of $0.08. That means that its growth in general now stands at -50%. Therefore, a prediction of $0.06 given by the analysts brought a negative surprise of -33%. VG Dec 19 quarter revenue was $273.8 million, compared to $254.02 million recorded in same quarter last year, giving it a 8% growth rate. The company’s $19.78 million revenue growth that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

Capital One Financial Corporation (NYSE:COF) shares depreciated -0.63% over the last trading period, taking overall 5-day performance up to 2.37%. COF’s price now at $83.21 is greater than the 50-day average of $81.11. Getting the trading period increased to 200 days, the stock price was seen at $89.6 on average. The general public currently hold control of a total of 464.5 million shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 467.36 million. The company’s management holds a total of 0.8%, while institutional investors hold about 90.9% of the remaining shares. COF share price finished last trade 1.31% above its 20 day simple moving average and its downbeat gap from 200 day simple moving average is -7.19%, while closing the session with 2.78% distance from 50 day simple moving average.

Capital One Financial Corporation (COF) shares were last observed trading -17.83% down since August 27, 2018 when the peak of $101.26 was hit. Last month’s price growth of 4.29% puts COF performance for the year now at 10.08%. Consequently, the shares price is trending higher by 19.04%, a 52-week worst price since Dec. 26, 2018. However, it is losing value with -15.63% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $82.69 and $82.95. The immediate resistance area is now $83.71 Williams’s %R (14) for COF moved to 42.04 while the stochastic %K points at 59.63.

COF’s beta is 1.26; meaning investors could reap higher returns, although it also poses higher risks. The company allocated $11.83 per share from its yearly profit to its outstanding shares. Its last reported revenue is $7.01 billion, which was 0% versus $7.01 billion in the corresponding quarter last year. The EPS for Dec 19 quarter came in at $1.87 compared to $1.59 in the year-ago quarter and had represented 18% year-over-year earnings per share growth. COF’s ROA is 1.6%, higher than the 1.43% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 2.75%.

Estimated quarterly earnings for Capital One Financial Corporation (NYSE:COF) are around $2.7 per share in three months through March with $2.92 also the estimate for June quarter of the fiscal year. It means the growth is estimated at 1.89% and -9.32%, respectively. Analysts estimate full-year growth to be 2.11%, the target being $11.11 a share. The upcoming year will see an increase in growth by percentage to 6.93%, more likely to see it hit the $11.88 per share. The firm’s current profit margin over the past 12 months is 21%. COF ranks higher in comparison to an average of 16.37% for industry peers; while the average for the sector is 31.81%.