Jim Cramer Says You Should ‘Buy, Buy, Buy’ These 5 Stocks

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

Number of Hedge Fund Investors: 51

Jim Cramer recently gave highly bullish comments about Capital One Financial Corp. (NYSE:COF). He said that Capital One Financial Corp. (NYSE:COF) is “terrific” and Capital One Financial Corp.’s (NYSE:COF) management is “great.” Cramer said that it would be “amazing” if Capital One Financial Corp. (NYSE:COF) is able to close its deal to acquire Discover. Cramer reiterated that Capital One Financial Corp. (NYSE:COF) is a “good company” and recommended a questioner who asked about the stock to “stick with” it.

As of the end of the last quarter of 2023, 51 hedge funds out of the 933 funds tracked by Insider Monkey reported having stakes in Capital One Financial Corp. (NYSE:COF). The most significant stake in Capital One Financial Corp. (NYSE:COF) is owned by Natixis Global Asset Management’s Harris Associates which owns a $2.4 billion stake in Capital One Financial Corp. (NYSE:COF).

Sound Shore Management made the following regarding Capital One Financial Corporation (NYSE:COF) in its fourth quarter 2023 investor letter:

“Long-term holding Capital One Financial Corporation (NYSE:COF) was also one of our better performers this quarter. The company boasts a diversified deposits base with about 80% FDIC insured, well above industry average. It is the only major bank 100% in the cloud, which enables better underwriting and quicker response to changes in the environment. This technology also helps reduce operating and fraud cost while freeing up cash flow for reinvestment in marketing to grow products (Venture X card) and build its brand. Periods of stress, like we saw in the banking sector during March, are a reminder of the underwriting acumen and high quality deposits of Capital One. We added to our position after the fallout, knowing that the company’s seasoned management team had steered capably through previous cycles. Today, as credit card delinquencies have risen to more normal levels, Capital One is already reporting a slowing in delinquency growth. Conversely, some peers saw prior underwriting missteps begin to surface in 2023. Currently trading at 9 times 2024 consensus earnings and around book value, we remain enthusiastic about the investment.”