10 Best American Bank Stocks To Buy Now

6. Capital One Financial Corporation (NYSE:COF)

Number of Hedge Fund Holders: 67

Capital One Financial Corporation (NYSE:COF) is an American bank holding company that owns the Capital One Bank. It provides a range of financial products and services to customers, businesses, and other clients through its digital channels, branch locations, and cafes.

On December 19, COF announced that it had received approval from the Delaware State Bank Commissioner to complete its acquisition of Discover Financial Services and its subsidiary, Discover Bank. The two companies had entered into a definitive agreement in February 2024 for the acquisition of Discover for $35.3 billion. The transaction is expected to close in early 2025.

The move has bolstered investor confidence in Capital One Financial Corporation (NYSE:COF). Amalthea Fund stated the following regarding the acquisition in its Q3 2024 investor letter:

“US Credit cards have become a concentrated business. The leading players in order are Chase, a part of JPMorgan, American Express, Citi, Capital One, Bank of America, and Discover. A combination of Capital One and Discover will become the number two player.”

Capital One Financial Corporation (NYSE:COF)’s solid financial performance is another factor driving the bullish sentiment. During Q4 2024, the company reported a total net revenue of $10.2 billion. Net income for the quarter stood at $1.1 billion, or $2.67 per diluted common share, up from $706 million, or $1.67 per diluted common share during the same period last year.

Wall Street analysts have a consensus Buy rating for COF. Investor sentiment is steadily improving. According to Insider Monkey’s database for Q3 2024, 67 hedge funds held a stake in the company, up from 65 at the end of Q2. Capital One is among the best American stocks to buy now.