No. 5: Capital One
Current Return: +15%
Investor: Philip van Doorn
In his initial article, “Capital One: Top Bank Stock Pick for 2012,” TheStreet.com contributor Philip van Doorn makes the case that financials in general aren’t as bad as you think — and certain smaller banks like Capital One (NYSE:COF) are, in fact, ready to soar.
His reasons included “continued strength in earnings and a historically low valuation to forward earnings estimates and book value.” And those reasons continue to hold firm, delivering Philip’s pick impressive year-to-date returns of 17%.
There are real risks of financial stocks overheating, since earnings remain choppy amid persistent eurozone troubles and continued foreclosure problems. But the gains so far leave a very nice cushion in Capital One and other financial stocks.