Why Capital One (COF) Could See Both Earnings Growth and Multiple Expansion?

Eagle Capital Management has highlighted Capital One Financial Corporation (NYSE:COF) as a stock with potential for both earnings growth and multiple expansion in their Q2 2026 investor letter. The consumer cyclicals and staples companies in the group are identified as having significant opportunities for rapid earnings growth. Capital One Financial Corporation, as one of the largest credit card companies in the U.S., operates a full-suite scaled digital bank and was recently acquired by Discover, which brought about financial synergies and the benefits of owning its own network.

Despite its size, the company remains under the control of its founder and maintains an entrepreneurial spirit. With a return on equity of 20%, the firm believes Capital One Financial Corporation is underappreciated and can deliver strong earnings growth and multiple expansion. The company is currently trading at a 20% market discount, which the firm notes will lead to faster expected EPS growth.