Is Capital One Financial (COF) One of the Most Undervalued Stocks to Buy Right Now?

Capital One Financial Corporation (NYSE:COF) is one of the Most Undervalued Stocks to Buy Right Now. On November 26, analyst Moshe Orenbuch of TD Cowen maintained a “Buy” rating on the company’s stock, retaining the price objective of $261.00. The analyst’s rating is backed by a combination of factors, which include potential benefits from Capital One Financial Corporation (NYSE:COF)’s acquisition of Discover.

This deal is anticipated to enhance Capital One’s ROTE and EPS over time, added Orenbuch. Furthermore, Capital One Financial Corporation (NYSE:COF) is expected to benefit from an improvement in credit trends and a strong buyback cycle, aided by its substantial excess capital. Also, the acquisition is expected to bolster Capital One’s earnings capacity as it achieves targeted synergies, like debit migration and cost efficiencies.

Capital One Financial Corporation (NYSE:COF)’s Q3 2025 net interest margin stood at 8.36%, reflecting a rise of 74 bps compared to the previous quarter. In Q2 2025, the partial quarter benefit from the Discover acquisition was ~40 bps. The full quarter of Discover in Q3 2025 resulted in ~45 bps of incremental NIM. The remaining growth in NIM in Q3 2025 was mainly because of higher yield on legacy Capital One Domestic Card loans and 1 additional day.

Capital One Financial Corporation (NYSE:COF) opines that the long-term capital need of the combined company is 11%.

Capital One Financial Corporation (NYSE:COF) operates as the financial services holding company.

While we acknowledge the potential of COF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.