5 Best Stocks to Buy Now for the Next 3 Months

In this article, we will take a look at the 5 Best Stocks to Buy Now for the Next 3 Months. For a deeper discussion and an expanded list, please see 10 Best Stocks to Buy Now for the Next 3 Months.

5. Capital One Financial Corporation (NYSE:COF)

Upside Potential: 39.08%

Number of Hedge Fund Holders: 135

Capital One Financial Corporation (NYSE:COF) is one of the top financial services stocks held by hedge funds, and an upside of over 39% ranks it among the best stocks to buy now for the next 3 months.

Capital One Financial Corporation (NYSE:COF) is investing in AI-driven tools to improve data efficiency, reflecting its aim to achieve technological advancement following Q1 earnings miss. Capital One shares have plunged over 25% year-to-date; however, analysts maintain a positive outlook, with a median price target of $255, implying more than 39% upside.

On May 19, Capital One Financial announced its expanded partnership with Inclusiv through a $7 million investment. The expanded deal is focused on enhancing digital tools, increasing lending capacity, and extending the reach of community development credit unions across low- and moderate-income communities in the U.S. This development is part of the company’s $265 billion Community Benefits Plan aimed at improving economic opportunity for underserved consumers, small businesses, and communities.

One of the important aspects of this expanded collaboration is the national scaling of Capital One Financial’s Second Look Auto Program, a segment that has untapped lending potential, as vehicle ownership is a key part of Americans ‘ lives. For Capital One, this deal signifies its positioning as a financial institution with notable reach into underserved markets through its credit union and CDFI deals instead of branch expansion, which leads to lower costs. Whereas, the auto lending program indicates the company’s goal to expand its lending footprint in a segment where it can reach a wider audience and offer differentiated products to borrowers.

Capital One Financial Corporation (NYSE:COF) is a financial services company that provides various financial products and services through three segments: Credit Card, Consumer Banking, and Commercial Banking.