10 Best Undervalued Stocks to Buy According to Billionaires

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1. Capital One Financial Corp. (NYSE:COF)

Number of Billionaire Investors: 22; Holdings: $5.6 Billion

Number of Hedge Fund Holders: 89

Forward P/E: 10.9; P/B: 1.08

Capital One Financial Corp. (NYSE:COF) is a diversified financial services company specializing in credit cards, consumer banking, and commercial banking. The company is one of the largest credit card issuers in the United States and offers a broad range of financial products, including auto loans, mortgages, and business banking services.

On March 11, Robert W. Baird analyst David George upgraded Capital One Financial Corporation (NYSE:COF) from Neutral to Outperform and raised the price target from $190 to $200. The upgrade follows a recent dip in the stock, which the analyst sees as an opportunity. Baird highlighted Capital One’s strong profitability potential among credit-sensitive financial firms and expects solid risk-adjusted returns in the coming years. Despite possible short-term economic challenges, the firm remains confident in Capital One’s ability to deliver strong earnings. The analyst estimates the company’s normalized earnings at around $22 per share (versus FY 2026 consensus estimate of $18.4) and suggests the stock’s fair value could reach $225 in the next couple of years.

While we acknowledge the potential of COF to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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