Capital One beat EPS estimates by 50%. Look at the P/CF multiple vs EPS growth and tell me it’s still not mispriced. Further, tax cuts on low income will help Capital One credit portfolio. If you had bought $COF on the date of the post below you would be up 2.4x. $COF
Ram Ahluwalia CFA, Lumida
Ram Ahluwalia CFA, Lumida27.10.2023
Capital One is bucking the trends of other lenders suffering from higher DQs. COF has an EPS beat and lower provision for charge-offs. The difference? BNPL are first to default on the consumer payment stack, credit cards have convenience. COF also has strong risk models.
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