We recently published a list of 15 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where Capital One Financial Corporation (NYSE:COF) stands against other stocks on Jim Cramer’s radar

On Friday’s episode of Mad Money, Jim Cramer reflected on this week’s market performance, with attention to upcoming earnings reports and broader market sentiment.

“Now we’ve been on a real rebound since post-Liberation Day meltdown back in the first week of April, with tech leading the way after really taking it on the chin.”

READ ALSO Jim Cramer Recently Commented On These 12 Stocks and Jim Cramer Put These 8 Stocks Under a Microscope Recently

According to Cramer, the rebound has been largely driven by tech stocks, which had previously been under pressure. However, he expressed uncertainty about whether that trend will hold, as he mentioned that the tech sector has been relatively quiet in terms of news, aside from a keynote from Jensen Huang. Looking ahead, Cramer noted that more retail earnings are expected this week.

“But here’s the bottom line: Unless we get news of new hostilities in the trade war with China, I think this market’s propensity will still be to go higher, even though we are overbought. And even with this late-night credit rating downgrade of the US debt, which is very quizzical to me, I think we’re containing the downside of the economy, and that means no recession, which tells me the negativity may be out of sync with the reality. That’s often the best kind of market…”

Our Methodology

For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 16. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).Jim Cramer Says “Capital One (COF) is My Favorite Stock Right Now”

A smiling face of a customer as they make a deposit at this company's branch.

Capital One Financial Corporation (NYSE:COF)

Number of Hedge Fund Holders: 89

Emphasizing that investors should learn the “story” of Capital One Financial Corporation (NYSE:COF), Cramer said:

Story Continues

“Monday also is the first day when Capital One, the credit card bank, trades as one with Discover Financial as the deal is now closed. Now I’ve been telling people…. that Capital One is my favorite stock right now in the Charitable Trust, even as it just gained almost 20 points this month alone. I think the move is far from over. I expect number bumps and analyst upgrades. You’ve got to learn the Capital One story.”

Capital One Financial (NYSE:COF) is a financial company that provides credit cards, loans, banking products, and services related to advisory and capital markets. Appearing on Squawk on the Street in April, Cramer remarked:

“We own Capital One. Now I don’t know. . people. . .in your world, this Capital One, it got approved, and, and, Fairbank is gonna stand there after this thing closes, and I think he’s gonna buy back a ton of stock because his stock is really cheap and he’s a reaallyy good banker.

Overall, COF ranks 3rd on our list of stocks on Jim Cramer’s radar. While we acknowledge the potential of COF as an investment, 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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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

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