Late Wednesday Capital One Financial (COF) reported 2nd quarter earnings of $2.03 per share, well ahead of analysts' estimates of $1.75. Managed loans increased 13 percent to $83 billion and the company maintained its full year earnings guidance of $6.60 to $7.00 per share.

Capital One continues to be the best performing credit card company in the industry. They expect their pending acquisition of Hibernia Bank (HIB) to close on September 1st of this year, which will enable them to extend their product line into the branch model.

Despite the good news, investors still can pick up COF stock for 10.8 times 2006 earnings. Not a bad price at all for the leading company in the credit card space growing in the 10 to 15 percent range on an annual basis.