Overview
- Jim Cramer publicly endorsed Capital One, labeling it “the one to own” and saying the shares should trade near the $230 range.
- Capital One reported third-quarter results of $5.95 in earnings per share on $15.36 billion in revenue, topping FactSet estimates.
- Cramer praised CEO Richard Fairbank and highlighted what he described as a gigantic buyback as a key support for the investment case.
- He pointed to declining defaults and a planned high-end card competing with Chase Sapphire and American Express, and he framed the Discover deal as building network scale that could rival Visa and Mastercard.
- Shares swung after the report, with Cramer citing intraday gains of up to $10 and arguing recent analyst target cuts were shortsighted, while publisher commentary noted some investors may prefer AI stocks for higher near-term upside.