Capital One Financial: Pullback Is A Buying Opportunity

Jeremy LaKosh6.07K FollowersFollow5ShareSavePlay(6min)Comments(2)SummaryCapital One Financial offers an attractive entry point after a 20% YTD share price decline, with earnings growth poised to accelerate.COF's net interest margins remain robust post-Discover acquisition, with both loans and deposits growing for two consecutive quarters.Trading at 9.5x this year’s and <8x next year’s earnings, COF is cheaper than peers and positioned for 12% average two-year earnings growth.Nonperforming assets are well covered by allowances, supporting confidence in credit quality and mitigating default risk concerns. Sundry Photography/iStock Editorial via Getty Images Introduction Capital One Financial (COF) is a large depositor bank that specializes in credit card lending. The bank grew in 2025 after its acquisition of Discover. Recently, shares sold off and have dropped nearly 20% yearThis article was written byJeremy LaKosh6.07K FollowersFollowOther writing on Substack: https://yieldstrategies.substack.com/I am currently focused on income investing through either common shares, preferred shares, or bonds. I will occasionally break away and write about the economy at large or a special situation involving a company I've been researching in. I target two articles per week for publication on Monday and Tuesday.About My Background: Bachelors in history/political science, Masters in Business Administration with a specialization in Finance and Economics. I enjoy numbers. I have been investing since 2000. Professionally, I am the CEO of an independent living retirement community in Illinois.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in COF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.