Jim Cramer Uses Capital One as an Example of Real Economy Stocks

Capital One Financial Corporation (NYSE:COF) is one of the stocks Jim Cramer put under the spotlight recently. Cramer highlighted the stock’s post-earnings action and said:

“You know I like the real economy stocks because the bar for them is very low. So they can easily rally. Witness Capital One, COF, a credit card company. It rallied nearly four bucks off a quarter that showed a dramatic decline in credit problems when many thought there’d be an increase. That’s a textbook example of a stock rallying off of a real shocker. This Charitable Trust holding was up $10 at one point. I think it’s going to go back there.”

Photo by Joshua Mayo on Unsplash

Capital One Financial Corporation (NYSE:COF) provides banking and financial services, including credit cards, loans, deposits, and digital banking solutions. During the September 30 episode, a caller asked about the stock in light of its decline and two analysts lowering their targets. Cramer replied:

“Yeah, look, I think that this move is an overreaction. I think that periodically, people think that as the economy gets weaker, this is the one to bet against. I would tell you that when the rate, when the economy gets weaker and the Fed moves and cuts rates, this is the one you want to buy. So I think these people are being very shortsighted. I don’t think they understand who really runs this bank because Fairbank’s really unbelievable. I think the stock deserves to be at the 230 range. I would be a buyer heavily here. I think these analysts are going to miss the next big move, and they’re making a major mistake, and I’m calling them out on it.”

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