Is Capital One Stock a Buy?
Financial stocks have gone on a tear over the past year as hopes of interest rate cuts from the Federal Reserve have boosted the interest rate-sensitive businesses. Capital One (NYSE: COF) has been one beneficiary, with its stock surging 49% since last November.
However, investors' focus has shifted to the weakening consumer. In a recent jobs report update, the unemployment rate rose for the fourth consecutive month, and stocks broadly sold off. In their second-quarter earnings calls, banks noted consumer spending was slowing down across specific market segments. Not only that, but charge-offs continued to rise industrywide.
Capital One's customer base could be particularly vulnerable in this environment, and in the second quarter, charge-offs on credit cards and auto loans ticked higher. With this in mind, is Capital One stock a good buy today?
Source Fool.com
