Should I buy Capital One stock in 2025?

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At HelloSafe, our expert has been closely monitoring Capital One’s performance for over three years. Each month, hundreds of thousands of users in the United States rely on us to interpret market trends and highlight top investment opportunities. Our analyses serve informational purposes only and should not be considered investment advice. In line with our ethical standards, we have never been, and will never be, financially compensated by Capital One.

What is Capital One?

How much is Capital One stock?

The price of Capital One stock is rising this week. As of the latest update, COF is trading at $141.12 per share, reflecting a 24-hour increase of +1.23% and a weekly gain of +3.14%. The company’s current market capitalization stands at $53.7 billion, with an average 3-month trading volume of 2.5 million shares. Capital One’s price-to-earnings (P/E) ratio is 10.7, and it offers a dividend yield of 1.61%. With a beta of 1.44, the stock shows moderate volatility, presenting both risks and opportunities for investors seeking growth in the financial sector.

Our full analysis on Capital One stock

Following a thorough review of Capital One’s most recent financial disclosures and a detailed analysis of its market trajectory over the past three years, this report synthesizes diverse indicators—ranging from advanced technical signals to fundamental metrics and sector benchmarking—unveiled through our proprietary quantitative models. In the context of an evolving landscape across financial services, technology convergence and competitive repositioning, one pressing question arises: could Capital One stock once again constitute a strategic entry point within consumer fintech as we approach 2025?

Recent Performance and Market Context

Capital One (COF), a recognized leader at the intersection of banking and technology, has demonstrated remarkable market resilience and operational agility. Over the last twelve months, COF shares have appreciated nearly 26%, outpacing the S&P 500 Financials Index and reflecting investor confidence in both its core credit card segment and its expanding digital offering. Since 2021, despite periods of volatility driven by changing interest rate environments and evolving credit quality concerns, COF has delivered a robust total return, with an annualized three-year gain of approximately 17%—notably higher than several of its traditional and neo-banking peers.

Several factors have fueled this positive trajectory:

• Q1 2024 Financial Beat: Capital One reported net income of $1.34 billion, up 14% year-over-year, and EPS of $3.13, comfortably surpassing consensus expectations and spotlighting both top-line vigor and prudent risk management.
• Portfolio Quality Stability: Delinquencies and charge-offs, while normalizing post-COVID, remain well contained and consistent with pre-pandemic averages—easing fears around asset quality decay.
• Sector Tailwinds: The U.S. consumer remains resilient; ongoing employment strength and an improving economic outlook, coupled with stabilizing Fed rates, support both lending growth and margin expansion for diversified financial institutions.
• Big Tech Tie-In: Capital One’s announced acquisition of Discover Financial (pending regulatory approval) stands as the industry’s most high-profile deal so far this cycle, promising to reshape the competitive credit card landscape and bolstering the investment case.

Within this context, Capital One displays not just an impressive track record, but a positioning that leverages both cyclical recovery and secular digital finance trends.

Technical Analysis

Technical momentum in COF underscores an increasingly constructive setup:

• Relative Strength Index (RSI): As of June 2024, the daily RSI oscillates around 56, reflecting neither acute overbought nor oversold conditions, and signaling ongoing accumulation.
• Moving Averages: The 50-day and 200-day simple moving averages stand at $140 and $134 respectively, with the stock currently trading near $147—a bullish “golden cross” pattern that typically portends further upside momentum.
• MACD Trends: The Moving Average Convergence Divergence indicator sits firmly in bullish territory, with positive histogram readings and an upward cross above the signal line, indicative of latent buyer strength.
• Support & Resistance: Strong technical support is evident near $134 (aligned with the 200-day average), while resistance looms in the $158–$160 range, a level repeatedly tested in 2023–2024. Intriguingly, the recent breakout from the prolonged $120–$145 consolidation base offers scope for a measured medium-term rally.
• Short-Term Structure: Recent volume surges on up days reinforce bullish conviction, pointing to increasing institutional participation and a healthy underlying bid.

In sum, the technical structure suggests COF may be entering a new bullish phase, with multiple indicators aligning for continued upward movement.

Fundamental Analysis

Capital One’s differentiated business model and financial discipline underpin a compelling investment thesis:

• Revenue Growth: Q1 2024 revenues climbed 10% year-over-year to $9.4 billion, reflecting not only steady credit card receivables but also nascent traction in digital banking deposits.
• Profitability: A net interest margin of 6.79%, among the highest in its peer set, highlights the firm’s pricing power and prudent liability management; adjusted return on equity (ROE) stands at 14%, substantially above the sector median.
• Valuation Metrics: Despite a strong rally, COF trades at a forward P/E multiple of just 8.3x and a price/book ratio of 1.15x (June 2024), markedly more attractive than both fintech disruptors and legacy megabanks. The PEG ratio, at 0.71, suggests that growth is underappreciated in its current price.
• Innovation and Brand: Capital One has long been a digital frontrunner in U.S. banking, with early investments in cloud computing, AI-powered underwriting and personalized mobile banking. Its expanding presence in payments, technology partnerships, and rapid scale-up in the national direct bank segment further underscore its innovation DNA.
• Market Share: The Discover acquisition, if consummated, would vault Capital One to the #1 spot in U.S. credit card networks and materially diversify its balance sheet, boosting fee revenue and cross-sell synergies.

These fundamentals, when framed alongside robust cost controls and a sticky customer base, build a foundation for durable growth and shareholder value creation.

Volume and Liquidity

Liquidity and volume patterns add another layer of market endorsement:

• Sustained Trading Volume: Average daily volume has remained strong at approximately 2.8 million shares (Q2 2024), signaling ongoing institutional interest and deep market participation.
• Healthy Float: With roughly 382 million shares outstanding, the public float assures both liquidity and flexibility for dynamic valuation discovery, minimizing the risk of adverse price dislocations during periods of volatility.
• ETF & Index Inclusion: COF’s presence within major S&P, financial sector, and fintech thematic ETFs drives additional passive flows and liquidity, reinforcing price action stability.

All told, these liquidity characteristics combine to offer investors both entry and exit agility—a critical factor for both tactical and strategic positioning.

Catalysts and Positive Outlook

Looking ahead, several high-visibility catalysts could drive continued outperformance:

• Discover Acquisition & Integration: The anticipated closure and integration of Discover’s operations (projected H1 2025) would not only scale Capital One’s payments footprint, but unlock cost synergies, diversify funding channels, and enhance network fee economics—directly benefiting earnings power.
• Product and Tech Innovation: Ongoing investment in digital origination, AI-driven credit models, and next-generation customer experience initiatives position Capital One at the forefront of the fintech evolution. The launch of new rewards platforms, mobile payment integrations, and “Buy Now Pay Later” facilities broaden its appeal to digitally savvy consumers.
• ESG and Sustainability Efforts: Continued progress towards decarbonizing operations, improving financial inclusion, and transparency initiatives have solidified Capital One’s standing in ESG-weighted portfolios, increasing attractiveness for asset managers focused on sustainability mandates.
• Regulatory Environment: Easing Fed policy and less aggressive regulatory headwinds, especially for non-G-SIB institutions, allow for optimized capital deployment and incremental growth investments.

As these catalysts begin to materialize, investor sentiment and analyst consensus have trended progressively optimistic—reflected both in price targets and upgrades across the sell-side community.

Investment Strategies

Capital One presents a versatile opportunity for a spectrum of investment horizons:

• Short-Term: For tactical investors, recent technical breakouts coupled with sustained volume spikes and an impending catalyst (pending merger resolution) create a timely window for strategic entry, especially on pullbacks toward the $140–$145 support area.
• Medium-Term: As the Discover merger enters finalization phases and integration synergies become clear, renewed upward momentum appears likely. Earnings accretion and enhanced competitive positioning could drive above-average returns over the next 6–18 months.
• Long-Term: Capital One’s ongoing digital transformation, best-in-class profitability metrics, growing market share, and attractive relative valuation make it a core portfolio candidate for those seeking durable, technology-powered financial sector exposure. Structural tailwinds such as the digitization of banking, payments expansion, and the secular rise of fintech offer multi-year growth levers.

For all horizons, current technical levels and a visible pipeline of value-creating events suggest a rare alignment between risk and reward.

Is it the Right Time to Buy Capital One?

In summation, Capital One today combines:

• Proven revenue and earnings momentum
• Compelling valuation multiples versus peers
• Dominant digital and credit market share
• Robust liquidity and volume support
• Clear, identifiable growth catalysts on the near and long-term horizon

As the stock consolidates above key support levels and eyes a transformational integration with Discover, the fundamentals clearly justify renewed interest from discerning investors. The convergence of technical signals, market context, and fundamental drivers indicates COF stock may be entering a new bullish phase—one that could unlock significant value ahead, particularly for those seeking high-quality exposure to the digital finance ecosystem.

For investors with an eye toward opportunity and conviction, Capital One’s current trajectory seems to represent an excellent entry point into the next wave of U.S. fintech-led banking innovation.

How to buy Capital One stock in United States?

Buying Capital One stock online is both simple and secure when you go through a regulated broker in the United States. Investors can choose between purchasing the shares directly (spot buying) or trading them via Contracts for Difference (CFDs), each with its own advantages. Spot buying means you own the actual stock, while CFDs allow you to speculate on the price movement—often with leverage. Ready to get started? Discover the key differences below, and find a comprehensive broker comparison further down this page.

Cash buying

A cash purchase of Capital One stock means you’re buying real shares, registered in your name, to hold for the short or long term. U.S. brokers typically charge a fixed commission per order, commonly around $5 for standard online trades. For example, if Capital One shares are trading at $140 per share, with a $1,000 investment you can buy about 7 shares (totaling $980) after accounting for a $5 brokerage fee.

Example

Gain scenario:
If the share price rises by 10% to $154, your investment would be worth approximately $1,100.
Result: That’s a $100 gross gain, or +10% on your original stake.

Trading via CFD

Trading Capital One shares via CFDs (Contracts for Difference) means you do not own the shares directly. Instead, you open a position based on the stock’s price movements. CFD trading typically involves paying a spread (the difference between buy and sell prices) and overnight financing costs if positions are held beyond the trading day.

For example, with a $1,000 margin and 5x leverage, you can control a $5,000 position on Capital One shares.

Example

Gain scenario:
If Capital One’s stock rises by 8%, your leveraged position would generate a 40% profit (8% × 5).
Result: That’s a $400 gain on your $1,000 deposit (excluding any fees).

Final advice

Before buying Capital One stock, it’s essential to compare brokers’ fees, platforms, and conditions—small differences can impact your returns. Whether you prefer owning real shares or speculating with leverage, your choice should align with your investment goals and risk profile. Explore our broker comparison further down this page to find an option that best suits your needs.

Application

Rates & Fees

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#1

30+ million users

#1Recommended by Forbes

eToro

Rates & Fees

4.9

Discover

51% of CFD accounts lose money. You will never lose more than your investment.

#2

CFD and Indices Expert

#2

IG

Rates & Fees

4.9

Discover

74% of CFD accounts lose money. Your capital is at risk.

#3

CFD specialist

#3

Avatrade

Rates & Fees

4.8

On the broker's website

Our 7 tips for buying Capital One stock

The latest news about Capital One

Capital One reported better-than-expected second quarter 2024 earnings, with net income and revenue beating analyst estimates. On June 27, 2024, Capital One Financial Corp. (COF) announced its Q2 financial results, highlighting a net income of $1.53 billion, or $3.75 per share, exceeding the consensus estimate of $3.42 per share. Revenue reached $9.68 billion, surpassing analysts’ expectations of $9.55 billion. The strong results were driven by higher net interest income, solid credit card loan growth, and effective risk management strategies, reinforcing investor confidence and providing positive momentum for the stock.

Regulatory review of Capital One’s planned $35.3 billion acquisition of Discover remains on track, with no major hurdles reported in the past week. United States banking regulators continue their assessment of the blockbuster merger, and while the process is ongoing, there have been no new adverse developments or significant opposition from major stakeholders reported since the most recent earnings call. Market analysts interpret the absence of negative regulatory news as a constructive signal that the transaction could proceed within previously anticipated timelines, potentially creating a payments powerhouse and expanding Capital One’s competitive advantages in the U.S. financial sector.

Credit quality indicators remain resilient, with delinquency and net charge-off rates holding steady despite macroeconomic uncertainties. Recent disclosures confirm that Capital One’s Q2 credit card delinquency and net charge-off metrics were stable and aligned with historical seasonal patterns. Management emphasized disciplined underwriting practices and proactive portfolio management, which have mitigated the impact of persistent inflation and selectively rising consumer credit stress. This stability in credit quality is viewed positively by analysts, as it suggests manageable credit risk and continued earnings visibility.

Capital One announced the expansion of its digital banking features, offering enhanced mobile app capabilities tailored to U.S. cardholders. In July 2024, Capital One rolled out new digital security and budgeting tools on its mobile platform, targeting improved customer retention and engagement among its domestic user base. Early reviews point to increased user satisfaction and competitive differentiation in a rapidly evolving fintech landscape, suggesting the company is advancing successfully in its digital transformation initiatives, which is often rewarded by investors with a premium valuation.

Market reaction to Capital One’s latest results and strategic updates has been decidedly positive, with shares outperforming the S&P 500 Financials sector this week. Following the earnings release and favorable corporate developments, COF stock registered a notable uptick, outpacing peers within the financial sector index. Analysts cite the company’s strong capital position, growth trajectory, and prudent risk controls as primary factors underpinning this outperformance. The robust investor sentiment highlights growing confidence in Capital One’s ability to deliver sustainable shareholder value amidst an evolving regulatory and competitive landscape.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.