Capital One Has Received A Beating And Now It's Time For Investors To Assess Future Prospects

Summary
  • Capital One shares have declined more than 15% over the last 12 months.
  • Shares yield over 2% at the current market price.
  • Investors should not miss attractive investment opportunities presented by banking and financial sector stocks that are not-so-big as the largest names in the industry.

Introduction

Financial sector stocks gained widespread attention in the latter stages of 2018 as legendary investors including Warren Buffett continued to pump billions of dollars into banking stocks, showcasing their optimism for the sector in the coming years. This prompted many investors to assess the suitability of big names in the U.S. banking industry to be included in their portfolios, and many investors readily followed the advice of these legendary investors.

A quick look at the most followed banks on Seeking Alpha quote pages reveals that investors are focused on the big names in the industry, and often let go of attractive investment opportunities presented by not so big, but efficiently managed, profitable banks and financial institutions.

Capital One Financial Corporation (NYSE:COF) is certainly not a small institute, but not many investors follow the stock.

In fact, this can be justified by looking at how Capital One has performed in comparison to the S&P 500 Index and especially, the S&P 500 Financial Index.

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