Capital One has gotten torched over the last six months - since September 2025, its stock price has dropped 20.3% to $179.85 per share. This was partly due to its softer quarterly results and might have investors contemplating their next move.
Following the pullback, is this a buying opportunity for COF? Find out in our full research report, it’s free.
Why Does Capital One Spark Debate?
Starting as a credit card company in 1988 before expanding into a full-service bank, Capital One (NYSE: COF) is a financial services company that offers credit cards, auto loans, banking services, and commercial lending to consumers and businesses.
Two Things to Like:
1. Long-Term Revenue Growth Shows Strong Momentum
Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.
Thankfully, Capital One’s 13.5% annualized revenue growth over the last five years was solid. Its growth beat the average financials company and shows its offerings resonate with customers.
2. Outstanding Long-Term EPS Growth
Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
Capital One’s EPS grew at 27.6% compounded annual growth rate over the last five years, higher than its 13.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
One Reason to be Careful:
TBVPS Has Plateaued, Reflecting Stagnating Assets
Tangible book value per share (TBVPS) is a crucial metric that measures the actual value of shareholders’ equity, stripping out goodwill and other intangible assets that may not be recoverable in a worst-case scenario.
Capital One’s TBVPS increased by a meager 2.7% annually over the last five years, and its recent performance paints an even worse picture as growth has stalled over the past two years, with TBVPS stuck at roughly $100.98 per share.
Final Judgment
Capital One’s merits more than compensate for its flaws. With the recent decline, the stock trades at 8.8× forward P/E (or $179.85 per share). Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More Than Capital One
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
