Capital One Financial Corporation (COF) is recognized as a cheap S&P 500 stock to invest in, with RBC Capital and JPMorgan raising price targets to $275 and $256, respectively. Both firms acknowledge the strong consumer finance outlook for Q4 2025, despite potential volatility from President Trump’s proposal to cap credit card interest rates at 10%.

While JPMorgan considers the rate reduction proposal a high-severity, low-probability risk, Shane warns that it could fundamentally reshape the credit card market, impacting issuer profitability and consumer access to credit. Despite these uncertainties, a defensive investment strategy is recommended for the consumer finance group.

Capital One Financial Corporation (NYSE: COF) operates as a financial services holding company, providing various products and services in the US, Canada, and the UK. Although COF is seen as a potential investment, certain AI stocks may offer greater upside potential and lower downside risk in the current market environment.

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Read more at Yahoo Finance: RBC Capital Raises Capital One (COF) PT to $275 on Strong Consumer Finance Outlook