Jim Cramer: Bank Stocks Are ‘All Affordable’ — But This One Standout Is ‘The Most Undervalued’ with the ‘Greatest Potential’

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TV host Jim Cramer is once again eyeing the banking sector, expressing that depressed valuations in the industry have created a unique buying opportunity. He highlights one stock in particular as having exceptional potential among its peers.

In a tweet earlier this week, Cramer stated, “The banks are all cheap,” identifying one particular bank stock as the “cheapest of all,” which he believes offers the “most upside” compared to its competitors.

The stock attracting Cramer’s attention is none other than Capital One Financial Corp. (NYSE: COF), which ranks as the sixth-largest bank in the U.S. Cramer has been a longtime supporter of Capital One, maintaining a bullish perspective that he asserts has already realized a profit of “60 points.”

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This endorsement comes shortly after Capital One’s impressive $35.4 billion acquisition of Discover Financial Services, which wrapped up earlier this year. Analysts expect that this acquisition will yield substantial cost synergies for Capital One.

Adding to the stock’s appeal is the significant $56.92 billion in excess capital that Capital One currently holds, enabling it to comfortably support stock buybacks while trading at an attractive forward earnings multiple of just 10.91.

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In recent weeks, several prominent analysts have expressed bullish sentiments towards Capital One. Notably, Wolfe Research initiated coverage with an “Overweight” rating and a price target of $270 a share, thereby signalling a potential upside of 16.97%. Similarly, analysts at Citigroup reiterated their “Buy” rating while raising their target price from $275 to $290, suggesting a remarkable 25.64% upside from current trading levels.

As the banking sector has enjoyed a robust performance this year, a pivotal factor driving this momentum has been the successful passage of the 2025 Federal Reserve stress test. Major banks have passed this with ample capital, resulting in approximately $100 billion being returned to shareholders via dividends and buybacks.

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This article Jim Cramer Says Bank Stocks Are ‘All Cheap’ — But This One Name Is ‘The Cheapest Of All,’ Has The ‘Most Upside’ originally appeared on Benzinga.com