1 Beaten-Down Bank Stock I'd Buy Right Now, Even With a Recession Likely to Happen

Capital One Financial (NYSE: COF) is down by 30% from its 2025 high, as of this writing, which it reached in mid-February. And the stock is down for some good reasons.While it might not seem like a victim of tariffs -- and it isn't, at least not directly -- the tariff plans could cause inflation and are making a recession far more likely. This could hurt consumer loan demand and lead to people having trouble paying their bills, which would create higher loan-loss rates for banks. With a high concentration of credit card loans, Capital One can be an especially cyclical bank stock.However, I believe most of the potential tariff fallout is reflected in the stock price after the recent sharp decline, and the market is overlooking some of the reasons Capital One could be a long-term winner. Here's why I'd be comfortable buying shares of Capital One right now, even with the economic turbulence we're seeing.Continue reading

Apr 10, 2025 - 11:49

1 Beaten-Down Bank Stock I'd Buy Right Now, Even With a Recession Likely to Happen

Capital One Financial (NYSE: COF) is down by 30% from its 2025 high, as of this writing, which it reached in mid-February. And the stock is down for some good reasons.

While it might not seem like a victim of tariffs -- and it isn't, at least not directly -- the tariff plans could cause inflation and are making a recession far more likely. This could hurt consumer loan demand and lead to people having trouble paying their bills, which would create higher loan-loss rates for banks. With a high concentration of credit card loans, Capital One can be an especially cyclical bank stock.

However, I believe most of the potential tariff fallout is reflected in the stock price after the recent sharp decline, and the market is overlooking some of the reasons Capital One could be a long-term winner. Here's why I'd be comfortable buying shares of Capital One right now, even with the economic turbulence we're seeing.