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Capital One Financial – What’s In Your Portfolio? | $COF

Takeaway: Steiner says the bullish thesis on COF looks strong into year end.

Hedgeye Financial sector head Josh Steiner says COF’s August results, released this morning, are a dose of steroids for his already strong bullish case for the stock. 

While the delinquency rate edged up a mere one basis point (1/100th of a percent) over the average for the last seven years, loan growth for August, as measured month-over-month, came in at three times the seven-year average. 

Steiner says credit quality appears to be holding stable, which means investors should view the latest spike in consumer borrowing in light of the latest bullish Consumer Confidence figures: people are borrowing more because they are earning more – or expect to – not because they are running out of options. 

Steiner says the bullish thesis on COF looks strong into year end.