15 Most Undervalued Large Cap Stocks to Invest In Now

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1. Capital One Financial Corporation (NYSE:COF)

Number of Hedge Fund Holders: 129

Capital One Financial Corporation (NYSE:COF) is one of the most undervalued large cap stocks to invest in now. On January 26, Truist Securities lowered its price target for Capital One to $275 from $290 with a Buy rating. The firm modestly reduced its estimates following the bank’s Q4 2025 earnings report, citing pressure from higher expenses and dilution associated with the newly announced $5.15 billion acquisition of Brex. According to Truist, the central debate for investors is now whether the company’s expenses have reached a peak.

On the same day, following Capital One’s Q4 2025 report, Barclays lowered its price target on the shares to $287 from $294 while maintaining an Overweight rating. The firm viewed the announced acquisition of Brex as a positive move to expand the company’s product suite and commercial card presence. Additionally, the firm noted that Capital One’s credit quality continues to improve and highlighted an acceleration in capital returns during the quarter.

Furthermore, on January 23, Deutsche Bank lowered its price target for Capital One Financial Corporation (NYSE:COF) to $256 from $263 and maintains a Hold rating. The firm noted that the company’s Q4 2025 report signals the start of an investment cycle that creates uncertainty regarding Capital One’s earnings upside potential.

Capital One Financial Corporation (NYSE:COF) operates as the financial services holding company for the Capital One, National Association, which provides various financial products and services in the US, Canada, and the UK.

While we acknowledge the potential of COF to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COF and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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