Bespoke Investment Group says Capital One Financial investors are buying stocks for profit, finding a rare source of stability in a volatile market. When credit card lenders report their results after Thursday’s close, traders will focus not just on the numbers but whether the company can extend its unusual streak. Since late 2022, Capital One stock has risen every day after earnings, with an average daily gain of about 3.5% for 13 straight reports, according to Bespoke data. “Stock prices have increased in one day in response to earnings in each of the past 13 reports,” Bespoke said in a note, calling the decline in large-cap financial stocks “unusual.” Consistency has been achieved despite uneven fundamentals. Since the bull market began in October 2022, Capital One has exceeded earnings per share estimates only 7 of 13 times and exceeded revenue estimates just 6 times, according to Bespoke data. It was only the third time in this period that the company beat estimates for profit and revenue for the quarter. “Based on the results compared to expectations, it does not appear that Capital One is minting funds,” Bespoke wrote. But the stock price reaction to earnings remains uniformly positive, suggesting investors are focused on forward-looking commentary and positioning rather than forward-looking results, the Wall Street research firm said. That pattern is now colliding with increasing political prominence. Capital One and other credit card issuers are under new pressure as President Donald Trump ramps up his criticism of the industry, reigniting concerns about a possible 10% cap on interest rates and fees. The rhetoric has weighed on stocks in recent weeks, with shares down more than 3% this month and uncertainty rising ahead of the report. COF 3M Mountain Capital One Stock Over the Past 3 Months
