10 Best Bargain Stocks to Buy in May

7. Capital One Financial Corporation (NYSE:COF)

Forward P/E: ~9.7x

Number of Hedge Fund Holders: 136

Average Upside Potential: ~33.2%

Capital One Financial Corporation (NYSE:COF) is one of the Best Bargain Stocks to Buy in May. On April 21, Mihir Bhatia from Bank of America Securities reiterated a “Buy” rating on the company’s stock, with a price objective of $234.00. The analyst’s rating was backed by several factors, which emphasize that the earnings miss for Q1 2026 does not change the thesis for Capital One Financial Corporation (NYSE:COF).

According to the analyst, operating expenses were better than feared, with marketing costs coming in lower than expected. Also, the interchange revenue was aided by the successful migration of debit volume onto the Discover network, helping the earnings power. The present headwinds are expected to abate, added the analyst, while highlighting that NIM pressure was because of temporary factors, such as day count and excess liquidity. The credit trends continue to improve, and capital returns are strong. The analyst also highlighted Capital One Financial Corporation (NYSE:COF)’s healthy capital position and long-term benefits due to the integrations of the Discover and Brex acquisitions.

Capital One Financial Corporation (NYSE:COF) is a technology-based financial services company.