10 Best Bank Stocks to Buy in 2025

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. COF operates through three segments: Consumer Banking, Commercial Banking, and Credit Card. It is one of the best bank stocks to buy in 2025.

On February 19, 2024, the company announced that it had entered into a definitive agreement to acquire Discover, one of the largest card issuers in the U.S., for $35.3 billion. Under the terms, upon closure of the deal, Capital One Financial Corporation (NYSE:COF) would own 60%, while Discover’s shareholders would have a 40% stake in the combined company.

The move has bolstered investor optimism around the stock. Amalthea Fund stated the following regarding Capital One Financial Corporation (NYSE:COF) 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 financial position also remains solid. During its recent Q3 2024 earnings call on October 24, the company reported another strong quarter, driven by stable consumer credit results, high net interest income, and growth in its domestic card and auto businesses. Total revenue increased by 5% year-over-year to reach $10 billion. Net income for the quarter improved significantly sequentially as well, from $597 million in Q2 to $1.8 billion in Q3.

Considering its steady financial position and the impending acquisition of Discover, Wall Street analysts are bullish on the stock, with a consensus Buy rating. Hedge fund sentiment around Capital One Financial Corporation (NYSE:COF) is improving as well. 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 the second quarter.