10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio

2. Capital One Financial Corporation (NYSE:COF)

Forward Price-to-Earnings: 12.36

Number of Hedge Fund Holders: 93

Capital One Financial Corporation (NYSE:COF) is one of the 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Bridgewater Associates holds over $30 million worth of shares of COF, which represents 0.14% of its portfolio.

Citing a strong long-term growth outlook, JPMorgan raised its price target on Capital One Financial Corporation (NYSE:COF) from $183 to $210 on June 26, 2025. Maintaining a ‘Neutral’ rating on the company’s stock, the analyst discussed the company’s Discover merger, which was finalized on May 18. While the analyst sees the merger generating synergies in the short run, its long-term outcome is quite complicated and uncertain.

The long-term growth lies in the company’s opportunity to modernize the Discover network first. While Discover operates its own payment network, upgrading it could give Capital One enhanced control. Secondly, the company could extract higher margins and improved control over customers by issuing its credit cards on the Discover Network, cutting out middlemen. Lastly, by having control over credit card issuing and payment networks, the company can leverage critical customer data for marketing, lending decisions, and product development.

Specializing in credit cards, auto loans, banking, and savings accounts, Capital One Financial Corporation (NYSE:COF) is an American bank holding company. COF is among the list of cheap stocks to buy.