Jim Cramer’s 5 Favorite Energy and Bank Stock Picks

In this article, we will discuss the 5 favorite energy and bank stock picks of Jim Cramer. If you want to explore similar stocks, you can go to Jim Cramer’s Favorite Energy and Bank Stock Picks.

5. Capital One Financial Corporation (NYSE:COF)

Number of Hedge Fund Holders: 52

Jim Cramer likes Capital One Financial Corporation (NYSE:COF) and mentioned the stock among his top bank stock picks. Cramer likes the company’s leadership and noted that Capital One Financial Corporation (NYSE:COF) reported “remarkable growth and defaults still well-below the heyday before the pandemic” in its earnings report for fiscal Q4 2022. Capital One Financial Corporation (NYSE:COF) is one of Jim Cramer’s favorite bank stock picks.

On January 24, Capital One Financial Corporation (NYSE:COF) posted earnings for the fourth quarter of fiscal 2022. The company reported an EPS of $2.82 and generated a revenue of $9.04 billion, up 11.36% year over year.

Shortly after the company’s earnings release, JPMorgan analyst Richard Shane updated his price target on Capital One Financial Corporation (NYSE:COF) to $120 from $124 and maintained an Overweight rating on the shares.

Capital One Financial Corporation (NYSE:COF) was a part of 52 hedge funds’ portfolios at the end of Q3 2022. The total stakes of these hedge funds amounted to $2.94 billion. As of December 31, Pzena Investment Management is the largest shareholder in the company and has a position worth $555.18 million.

Here is what Oakmark Funds had to say about Capital One Financial Corporation (NYSE:COF) in its Q4 2022 investor letter:

“Additionally, we initiated a position in Capital One Financial Corporation (NYSE:COF) during the quarter. Capital One is one of the largest issuers of Visa and Mastercard credit cards in the U.S. The company also has a banking network, offers auto and home loans, and manages assets for institutional and high-net-worth clients. We like that Capital One possesses a strong capital position and a common equity tier-1 ratio that exceeds both regulators’ requirements as well as the company’s own internal target. We appreciate the company’s good underwriting track record and its history of lower than expected loss rates given its business mix and yield. In our view, Capital One’s management team is focused on the long term as evidenced by its consistent reinvestment in technology development, and its online/branch bank provides a stable deposit base with decent funding cost. At roughly 5x 2022 consensus earnings and 1.1x tangible book value per share, the stock trades at a significant discount to the market and our estimate of intrinsic value.”