30 Best Stocks To Invest In According to Billionaires

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16. Capital One Financial Corporation (NYSE:COF)

No. of Billionaire Investors: 22

Total Value of Billionaire Holdings: $5.59 Billion

Capital One Financial Corporation (NYSE:COF) is a diversified financial service holding company that owns Capital One Bank. The company provides a range of financial products and services to consumers, small businesses, and commercial clients. Capital One operates through three segments: Credit Card, Consumer Banking, and Commercial Banking.

On February 19, BofA Securities analyst Mihir Bhatia upgraded COF from Neutral to Buy, increasing the price target from $207 to $235. The upgrade on COF shares indicates a positive outlook on the company’s potential for growth in both the short and long term. The new price target is based on a 12.5 times multiple applied to Bhatia’s projected EPS for COF in 2026, compared to its current P/E ratio of 17.32x.

Capital One Financial Corporation (NYSE:COF) shareholders have approved the acquisition of Discover Financial Services and its subsidiary, Discover Bank, after the Delaware State Bank Commissioner approved it on December 18, 2024. This move has already attracted investors and will be key to the company’s growth in the future.

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.”

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