Capital One: Buy The Dip Opportunity

Summary:

  • Capital One’s financial health is showing no signs of weakness.
  • Deposit inflows, delinquency rate normalization, and allowance for credit loss build are continuing.
  • Valuation, relatively, is at an attractive level.
  • The company’s growth prospects remain healthy.
  • Stock price decline or pressure from the banking industry concern only creates opportunities for investors.

Capital One Bank Branch Midtown Manhattan

wdstock/iStock Editorial via Getty Images

Introduction

2023, so far, has been a tumultuous year for the banking industry. After a few bank failures, investors have been turning more cautious toward almost all banks except for the few industry leaders. This was likely the reasoning

Total Deposits

Capital One

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Data by YCharts


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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