Was Arrowstreet Capital Right About These 5 Finance Stocks?

2. Capital One Financial Corporation (NYSE:COF)

Arrowstreet Capital’s Stake Value: $879,151,000

Stock performance over the past 12 months through November 25: -31%

Capital One Financial Corporation (NYSE:COF), an American bank holding company headquartered in Virginia, is one of the top finance stocks to buy according to Arrowstreet Capital.

Goldman Sachs analyst Ryan Nash removed Capital One Financial Corporation (NYSE:COF) from the firm’s Americas Conviction List but kept a Buy rating on the shares with a price target of $174, down from $185 on January 6. The analyst sees a “less compelling story”, saying Capital One Financial Corporation (NYSE:COF)’s increased technology investment and higher marketing will likely put a pause on progress towards its operating efficiency targets. 

Here is what ClearBridge Investments has to say about Capital One Financial Corporation (NYSE:COF) in its Q2 2021 investor letter:

“Portfolio holdings in the communication services and financial sectors also made strong contributions… In financials, Capital One has also benefited, at least indirectly, from government stimulus that has strengthened customer balance sheets and driven credit losses to record lows. Capital One should also benefit from a reopening of the economy and increased discretionary spending.”