I added to my position on 3/6/2020 in Capital One Financial Corp (COF) at $82.3883. Capital One is now our 6th largest position at this time.
Was happy to get more at less than my previous purchase. Much of what I said in my previous Capital One analysis still stands.
Their size, experience, technology and generous rewards should help continue their growth. While less outside commercial activity could cut into earnings, if people are spending at home, that should help offset that in the short term. If more people are shopping at home, then they are more likely to pay with a credit card instead of cash or check.
I understand the threats of technological disruption, competitors reward programs and a possible recession are there, but I believe the current valuation while may need to be adjusted, certainly has most threats priced in…
Capital One currently trades at a:
- 6.20 forward PE
- Price/Book of .58
- PEG of .76
- dividend yield is 2.19%
These numbers are significantly better than the industry average in every way.