15 Best and Cheap Stocks to Buy According to Billionaires

1. Capital One Financial Corporation (NYSE:COF)

Forward P/E Ratio: 10.37

No. of Billionaire Investors: 22

Capital One Financial Corporation (NYSE:COF) is a financial services company that offers a range of banking products including checking and savings accounts, credit cards, auto loans, and commercial lending. Capital One is one of the largest credit card issuers in the U.S. The company is all set to acquire Discover Financial Services following the approval of shareholders from both companies. However, the Department of Justice potentially sees this $35.3 billion acquisition of DFS as “anticompetitive” in the subprime sector.

Despite what happens with the acquisition deal, Capital One Financial Corporation (NYSE:COF) holds a strong position in the market. In Q4 2024, the company posted a net income of $1.1 billion and a full-year profit of $4.8 billion. The company’s EPS was $3.09 for the quarter and $13.96 for the year. COF’s consumer banking deposits continued to grow and upheld a solid liquidity coverage ratio of 155%.

On March 11, Robert W. Baird analyst David George upgraded COF rating from Neutral to Outperform, increasing the price target from $190 to $200. George noted that Capital One’s strong profitability is a key factor to its growth while expecting solid risk-adjusted returns in the coming years. The analyst expects COF to post normalized earnings at $22 per share compared to the consensus estimate of $18.40 per share.

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 Invest In According to Billionaires.

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