Jim Cramer Says “Capital One Discover Has Got Really Fabulous Scale”

Capital One Financial Corporation (NYSE:COF) is one of the stocks Jim Cramer recently offered insights on. Cramer showed optimism around the company’s acquisition of Discover, as he stated:

“I still like Capital One, COF, for its acquisition of Discover, a credit card company that gives them the edge at the register, because it’s cheaper for merchants to use Capital One Discover than Visa or MasterCard. The stock sells at 10 times earnings even as the company has about 160 million cards in circulation. Block, the old Square that we talked to last night, it has around 57 million Cash App users, and it sells for about 25 times earnings. That doesn’t make sense to me.

Sure, Block has a younger client base, but Capital One Discover has got really fabulous scale. Listen, we haven’t had many mergers in the past four years. People forget how bountiful they can be, especially if the stock of the buyer gets knocked down. Look for this trend to take off. If history’s any guide, it can make us a lot of money.”

Capital One Financial Corporation (NYSE:COF) is a banking, lending, and card services firm that provides deposits, credit cards, auto loans, and commercial financing. The company also supports consumers, small businesses, and commercial clients with advisory and treasury services.

While we acknowledge the risk and potential of COF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COF and that has 10,000% 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.

Disclosure: None. This article is originally published at Insider Monkey.