Opinions
David Dietze
Capital One Financial Corp
COF-N
COMMENT
Mar 21, 2017
$83.650
Stock price when the opinion was issued
finance
leasing
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
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WEAK BUY
It's the 10th-largest US bank, at 8x PE. They expanded from credit cards into banking, and are building a strong brand. They're using technology to drive efficiency, will move to the cloud later this year. The trouble they'll have is that their client base on the retail side is weaker than peers like JP Morgan. COF isn't expensive and have grown impressively. Tech will make them more efficiency and overall COF will perform better post-Covid.
finance
leasing
You have to start with a top-down analysis. Do you like financials? He can make a great case that financials will be much higher 5-10 years down the road. Remember, this is one sector that has never come back from the peaks that they held before the 2008 subprime crisis, so valuations generally are low. Also, it is one of the few groups that can benefit from higher interest rates. He feels this one has an excellent franchise. They are with the credit cards which is a growing way people pay worldwide. They also have some great individual banks.