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Capital One Financial Corp. stock outperforms competitors on strong trading day

Forget big tech: the real AI money is in plumbing

Host Kenny Polcari joins Yahoo Finance's Jared Blikre and Founder ETFs' Michael Monaghan to explore the data showing why founder-led companies significantly outperform the market. The panel also breaks down the flawless execution of the SpaceX IPO, the overlooked opportunities in AI infrastructure, and why the next major productivity boom will mirror the historical shift from steam to electricity. Video Transcript 0:04 spk_0 Welcome to Trader Talk. I'm Kenny Pilcari, your host, and today I am joined by Jared Blicky, who's the Yahoo Finance markets and data editor, along with Michael Monahan, who is a partner and portfolio manager at Founder ETFs and the Founder 100 ETF which I thinkIt is a fascinating product. So we're gonna talk about that. Actually, I want to kick that off and talk about that specifically because I think that's a great concept. So, tell the audience a little bit what you mean by the Founder 100. 0:31 spk_1 With the Founder100, we have a portfolio of what we believe to be the 100 best founder-led companies in the US stock market.The reason we chose to do that, we looked at historical data that said that founder-led companies tend to outperform by 3 times versus a board hired CEO. 0:47 spk_0 So give me a couple of examples just so people understand what we're talking about. A couple of companies. 0:51 spk_1 Yeah, so our stump speeches, we own Nvidia but not Intel. We own Dell but not Apple. We own Capital One, not American Express.We own Monster Beverage, not Coca-Cola. 1:01 spk_2 So in these, in these companies, uh, a lot of these founders, so there's a complaint that the super voting shares that they have are actually a detriment to shareholders, but you're kind of positioned the opposite way. You're like, these companies we want to invest in because the founders have a bigger stake. 1:17 spk_1 Yeah, we, we, we've looked at that and that seems to be an emotional statement that people make, but the data doesn't show that. The data shows that the super voting founders outperform. 1:26 spk_0 Well, because they have so much skin in the game, right? So they wanna, I would imagine that they'd want to outperform. So how long is this, your ETF been existed? 1:34 spk_1 So we launched the product December 18th of last year. There's a companion index on Bloomberg that looks, that you can look up under founders that has a 27 year track record. 1:44 spk_0 And so how's you, how have you been performing? 1:47 spk_1 So we went through this apocalypse and uh we did a drawdown then and that's one thing we should talk about is where the drawdowns do and don't happen in these products. But ever since the war, uh, started in late February, we've outperformed the S&P 500 in the war backdrop. 2:02 spk_0 Ithink that's great. I think it's really fascinating. I want to talk more about that, but we have so much other, so much other stuff that I want to get to. And so let's just talk about, we're talking about founders, we're talking about growth. Um, where do we think the next kind of wave?I mean, right now we're in the middle of this AI revolution, which I think is still very much in the early stages. I don't think there's anywhere near being over yet. But talk about, you know, either within that tech space, adjacent tech space, adjacent to the tech spaces, where do we see the growth coming from or where are you seeing it coming from? 2:30 spk_2 So, the products that we use every day, that's not where the, uh, profits are coming from. That's where a lot of the growth is coming from. But, you know, OpenAI, that, that IPO.It's a big question mark right now because he wants a billion dollars or $1 trillion dollar valuation. That's gonna be hard to do. But the further you move away from the AI user, you get from, you know, the data centers to the chips and all the way to electrical and power, that's where the most profits are right now. Right? And 2:55 spk_0 I think that's actually maybe one that's less understood by a lot of the investi

Can Encore Capital's Raised 2026 Outlook Drive More Earnings Growth?

Encore Capital Group, Inc. ECPG raised key parts of its 2026 outlook after a strong first half, putting more weight on collections growth and operating execution. The revised guidance improves visibility into the earnings path. The higher bar also increases the importance of delivery. Funding costs, leverage and rising legal collection expenses remain meaningful constraints as investors assess whether recent operating momentum can translate into sustained earnings growth. Encore Capital Raises the Bar for 2026 Encore now expects 2026 earnings of $13-$14 per share, up from its prior projection of about $13. The new range signals greater confidence in full-year performance after the first half. The guidance includes $1 per share of refinancing costs absorbed in the second quarter. That makes the increase more notable because the higher range already incorporates the refinancing-related earnings drag. The Zacks Consensus Estimate points to a clear earnings step-up. Earnings are projected to increase from $10.91 per share in 2025 to $13.52 in 2026 and $14.64 in 2027. Earnings EstimatesZacks Investment Research Image Source: Zacks Investment Research Estimate revisions add to that momentum. The current year earnings estimate has increased 3.9% over the past four weeks, suggesting analysts have become more constructive as collections and portfolio revenues improve. Earnings Estimate Revision TrendZacks Investment Research Image Source: Zacks Investment Research ECPG's Collections Outlook Moves Higher Management raised 2026 global collections guidance to $2.80-$2.85 billion, implying growth of 8%-10% year over year. The prior outlook called for about $2.8 billion, or 8% growth. Second-quarter global collections rose 13% to a record $737 million. The result followed strong first-half execution and supports the view that recent portfolio purchases and collection improvements are translating into higher collections. Driven by this momentum, the Zacks Consensus Estimate for sales reflects a year-over-year rise of 8.9% in 2026 and 2.1% in 2027. Sales EstimatesZacks Investment Research Image Source: Zacks Investment Research Encore Capital's Refinancing Adds a Funding Tailwind Encore's May refinancing is expected to save about $15 million in annual interest expense. Lower financing costs can provide earnings support as the company continues deploying capital into receivable portfolios. The benefit comes with an important offset. Encore expects 2026 interest expense, including other income, of about $295 million, underscoring the funding sensitivity of a business that relies on borrowings to finance portfolio purchases. Story Continues ECPG's U.S. Supply Supports Portfolio Deployment Encore maintained its 2026 portfolio purchase outlook of $1.4-$1.5 billion. Management continues to see favorable U.S. supply, supported by elevated revolving credit balances and charge-offs, while Midland Credit Management's scale, analytics and collection capabilities help it target attractive returns. PRA Group, Inc. PRAA, another buyer and collector of nonperforming loan portfolios, said second-quarter 2026 portfolio income increased 7% to $267.8 million, driven by strong recent purchases at improved returns. Capital One Financial Corporation COF, a major U.S. card lender, reports delinquency and charge-off trends that provide another read on the consumer-credit backdrop influencing future debt-sale supply. Encore Capital Still Faces Cost and Leverage Risks Legal collection expenses increased 25.8% year over year in the first half of 2026. If collections growth slows, that faster-growing cost line could pressure operating leverage and cash efficiency. Borrowings reached $4.18 billion at June 30, 2026. The company also remains heavily dependent on U.S. conditions, with Midland Credit Management accounting for 85.2% of first-half global portfolio purchasing dollars. Higher funding costs or weaker U.S. collections could therefore make the raised outlook harder

ECPG Rises 16.3% in 3 Months Amid Record Collections and Higher EPS

Encore Capital Group, Inc. ECPG has gained 16.3% over the past three months, sharpening the focus on whether operating momentum can keep supporting the advance. ECPG shares have outperformed the industry over the same period. The stock has also performed better than Synchrony Financial SYF but has lagged Capital One COF over the past three months. 3-Month Price PerformanceZacks Investment Research Image Source: Zacks Investment Research Record collections, higher earnings expectations and a peer valuation discount strengthen ECPG's case. The counterweight is a more demanding setup after the rally. Rising legal collection costs, substantial borrowings and heavy U.S. exposure leave less room for execution or credit-market conditions to weaken. ECPG's Record Collections Strengthen the Bull Case Second-quarter global collections reached a record $737 million, up 13% year over year. Revenues increased 11% to $491.9 million, while U.S. collections rose 17% to a record $572 million. The performance reflects continued portfolio investment and better collection execution. Management tied the U.S. gains to new technologies, enhanced digital capabilities and operational innovation that are helping reach more consumers and expand the payer base. Driven by this momentum, the Zacks Consensus Estimate for sales reflects a year-over-year rise of 8.9% in 2026 and 2.1% in 2027. Sales EstimatesZacks Investment Research Image Source: Zacks Investment Research Encore Capital's Earnings Outlook Keeps Rising Encore raised its 2026 GAAP earnings outlook to $13-$14 per share, even after absorbing $1 per share of refinancing costs in the second quarter. The Zacks Consensus Estimate for 2026 earnings is $13.52 per share, up from $10.91 in 2025. Earnings EstimatesZacks Investment Research Image Source: Zacks Investment Research Estimate revisions add to that momentum. The current year earnings estimate has increased 3.9% over the past four weeks, suggesting analysts have become more constructive as collections and portfolio revenues improve. Earnings Estimate Revision TrendZacks Investment Research Image Source: Zacks Investment Research ECPG's Valuation Still Trails Key Benchmarks ECPG trades at 6.68X forward 12-month earnings, below the 8.52X multiple for its Zacks sub-industry. That discount gives the stock a valuation cushion relative to peers despite the recent price advance. The stock is not unusually cheap against its own history. Its five-year median forward multiple is 6.5X, below the current level, so the valuation case rests more on a peer discount than on a deep historical discount. P/E F12M Story Continues Zacks Investment Research Image Source: Zacks Investment Research Encore Capital is inexpensive compared with Capital One and Synchrony Financial. At present, AllianceBernstein has a forward 12-month P/E of 10.02, while Capital One and Synchrony Financial trade at forward 12-month P/E of 9.94X and 7.85X, respectively. Encore Capital's Risks Could Test the Rally The business remains highly dependent on U.S. credit conditions. Midland Credit Management accounted for 85.2% of global portfolio purchasing dollars in the first half of 2026, leaving fewer offsets if U.S. supply, pricing or consumer payment behavior turns less favorable. For broader credit-cycle context, Capital One operates a large credit-card business, making its delinquency and charge-off trends relevant to debt-buying supply. Synchrony Financial also has substantial consumer-credit exposure, so its credit performance offers another read on the environment feeding charged-off receivables into the market. Cost and leverage risks also matter. First-half legal collection costs rose 25.8% year over year, while borrowings reached $4.18 billion as of June 30, 2026. If collections slow, that combination could pressure margins and cash efficiency. Can ECPG Sustain Its Recent Momentum? The next phase depends on whether higher collections, favorable U.S. portfolio supply and rising earni

Monumental Sports & Entertainment Unveils Bold Vision for Brand-New Capital One Arena

20-year naming rights extension launches the next chapter of Capital One Arena as part of Capital One's continued commitment to its hometown; Monumental unveils fresh videos and renderings of a brand-new arena in downtown D.C. WASHINGTON, Aug. 11, 2026 /PRNewswire/ -- Monumental Sports & Entertainment (MSE) and Capital One today unveiled the next chapter of Capital One Arena: a world-class, next-generation sports and entertainment destination built to bring fans, athletes, businesses, and the broader Washington community together in the nation's capital. The transformation represents a significant investment in the District, and a shared commitment by two organizations deeply rooted in the national capital region to create a lasting community asset that will serve residents and visitors for generations to come.Capital One Arena exterior As part of the arena's next chapter, MSE and Capital One have entered into a 20-year naming rights extension for the reimagined Capital One Arena, reinforcing Capital One's long-term commitment to Washington, D.C. and the greater Washington area. With the completion of the arena transformation just over a year away, MSE has released new renderings showcasing the building's iconic new exterior and a first look at the upgraded experiences on the District Level (previous 100 Level) and Terrace Level (previous 400 Level) slated to debut ahead of the 2027 season. "Washington is entering an extraordinary new era, and the completely reimagined Capital One Arena will reflect the ambition, energy, and global stature of the city it represents," said Jim Van Stone, President of Business Operations and Chief Commercial Officer at MSE. "From our unmatched collection of iconic teams to the storytelling power of Monumental Sports Network, we're creating an experience in the heart of the nation's capital that connects fans everywhere—whether they're visiting from around the world or just a Metro stop away. We're excited to partner with Capital One, a leading financial institution founded and headquartered right in our backyard, to bring this vision to life in the decades to come." "Capital One has called the Washington region home for more than three decades, and we're proud to continue investing in its future," said Byron Daub, Vice President, Sponsorships and Experiential Marketing at Capital One. "Strong communities create economic opportunities for the people who live and work in them. This revitalization can help strengthen the surrounding neighborhood, support local businesses and create new opportunities across this important region. Story Continues Capital One Arena is more than a sports and entertainment venue — it's a place where people come together to create long-lasting memories and an anchor of Washington, D.C.'s economic and cultural vibrancy. We're excited to continue our partnership with Monumental and look forward to creating even more opportunities to deliver meaningful experiences for our customers and support the continued vitality of downtown Washington." Transforming Capital One Arena Capital One Arena anchors MSE and Capital One's shared vision for a dynamic sports, entertainment and business district in the heart of the nation's capital, created in partnership with the District. Once the $1 billion+ project is completed, the transformed Capital One Arena will host approximately 250 events annually, serving as the home of the NHL's Washington Capitals, the NBA's Washington Wizards and Georgetown men's basketball, while also hosting a slate of games for the WNBA's Washington Mystics and a world-class lineup of concerts, family shows and premier live entertainment. Notably, the venue is set to host the 2027 NCAA Division I Men's Ice Hockey Championship ("Frozen Four") and 2028 NCAA Division I Women's Basketball Regional ("Sweet 16" and "Elite 8") in coming years. With Phase Two of construction underway, the full transformation remains on schedule for completion ahead of the 2027–28 NBA an

Jim Cramer Backs American Express (AXP) and Capital One (COF) as Consumer Spending Stays Strong

During the August 6 Mad Money episode, host Jim Cramer highlighted a change in consumer behavior that continues to benefit major credit card issuers. Cramer noted that high consumer spending on travel and experiences has evolved from a temporary post-pandemic rebound into a sustained, long-term trend. He said: Look, I knew that American Express, I knew that there'd be buoyancy because they got a rich clientele. But to see and hear that Bookings and the Expedia CEOs in the last couple of days tell a tale of incredibly robust vacation demand, I'm calling that downright encouraging. Now, it is true that post-COVID, there's been a predilection to travel. That's the long on money, short on time. I mean, that's, in other words, like people came back from COVID and they said, you know what? I got to see the world. But I thought that would have been a little transitory. It now seems evergreen. And the CEOs of Delta and United Airlines they've embraced the storyline.Jim Cramer Backs American Express (AXP) and Capital One (COF) as Consumer Spending Stays Strong American Express: Premium Clientele Drives Resilient Spending American Express Company (NYSE:AXP) remains uniquely insulated from broader consumer headwinds due to its affluent cardholder base. Premium cardholders historically maintain high spending levels regardless of macroeconomic shifts, driving fee-based income and credit quality. Cramer pointed out that the recent dip in the stock price creates an attractive entry point for long-term investors, "Hey, you know what? The stock of American Express is down 7% for the year. I like that, too." During the July 21 episode, he highlighted strong travel numbers as fuel for American Express. Cramer, with the help of options trader Bob Lang's chart analysis, previously broke down AXP's technical setup following a key moving average breakout. Cramer highlighted his classic playbook for American Express Company (NYSE:AXP), capitalizing on its routine post-earnings morning dip around 10:30 AM before the stock finds its footing, leveraging its high-margin annual fee model and premium cardholder spending. Capital One Discover Merger Creates a Credit Card Powerhouse During the episode, Cramer highlighted Capital One Financial Corporation (NYSE:COF) as a primary beneficiary of broader consumer spending trends, as he remarked: Oh, I like Capital One, COF, as a way to play consumer spending now that it's merged with Discover to become a heavy hitter in the credit card space. There's opportunity there... Capital One's down 9%. I think either can fit in your portfolio. I think both are going higher. Story Continues Cramer frequently points to Capital One as a prime beneficiary of consumer strength. He noted on June 17 that healthy consumer spending and tame delinquency rates provide a strong fundamental tailwind for the company. He stated: While we do have a surprisingly strong consumer, that always helps. This May retail sales number we saw this morning, 0.9% rise from the previous month and a 6.9% increase from May of last year, oh, that's healthy. Delinquencies are tame, meaning people are paying their credit card bills. That's allowed a stock like Capital One, one of the big Charitable Trust names, which got slammed by higher oil prices, to become a virtual trampoline as it offers higher interest rate credit cards. How Wall Street Values American Express Versus Capital One In institutional portfolios, Capital One Financial Corporation (NYSE:COF) had a broader coverage among major funds, with 135 hedge funds holding positions in the stock in Q1 2026 compared to 136 in Q4 2025. American Express Company (NYSE:AXP) maintained steady institutional backing, held by 83 hedge funds across both quarters. Berkshire Hathaway held significant positions in both stocks in the first quarter of the year. Their valuations highlight two distinct investment profiles. American Express trades at a higher forward price-to-earnings ratio of 19.5x, which reflects th

Frontera Energy Provides Notice of Second Quarter 2026 Financial Results Conference Call

Navient Stock Up on Q2 Earnings Beat, Expenses & Provisions Fall Y/Y

Shares of Navient Corporation NAVI gained 4.8% in yesterday's trading session after reporting better-than-expected results. The company's second-quarter 2026 earnings per share (EPS) of 29 cents surpassed the Zacks Consensus Estimate of 19 cents. It reported earnings of 21 cents in the prior-year quarter. Results benefited from lower expenses and a decline in provisions for loan losses. However, a decrease in net interest income (NII) and other income acted as a headwind. Navient's GAAP net income was $25 million compared with $14 million in the prior-year quarter. Navient's NII & Expenses Decline NII declined 8.3% year over year to $120 million in the second quarter. It missed the Zacks Consensus Estimate of $129.1 million by 7%. Total other income decreased 18.2% year over year to $27 million. Provision for loan losses was $26 million, down from $37 million in the prior-year quarter. Total expenses decreased 15.8% year over year to $85 million. NAVI's Quarterly Performance of Segments Federal Education Loans: The segment generated a net income of $26 million, which declined 13.3% year over year. As of June 30, 2026, the company's net FFELP loans were $26.6 billion, down 10.3% sequentially. Consumer Lending: This segment reported a net income of $27 million, which increased 3.8% from the year-ago quarter. The private education loan delinquency rate greater than 30 days was 5.4% compared with 6.4% in the prior-year quarter. As of June 30, 2026, the company's private education loans were $15.7 billion, which increased marginally from the prior quarter. Navient originated $735 million of private education refinance loans in the reported quarter. Navient's Liquidity To meet liquidity needs, NAVI expects to utilize various sources, including cash on hand, unencumbered education loan portfolios, operating cash flows, repayments of principal on unencumbered education loan assets and distributions from securitization trusts. It may also draw down on the secured FFELP Loan and Private Education Loan facilities, issue term asset-backed securities (ABS), enter additional Private Education Loan and ABS repurchase facilities, or issue additional unsecured debt. Notably, the company had $770 million of cash and cash equivalents as of June 30, 2026. Navient's Capital Distribution Activities In the second quarter, the company paid $15 million in common stock dividends. In the reported quarter, Navient repurchased shares of common stock for $2 million. Our Take on NAVI Navient's second-quarter results benefited from lower expenses and a decline in provisions for loan losses. The year-over-year improvement in Consumer Lending net income and solid private education refinance loan originations were other positives. Story Continues However, lower NII and other income remained concerns. The continued decline in the FFELP loan portfolio is also likely to weigh on interest income, while the company's disciplined expense management should provide some support to financial performance. Navient Corporation Price, Consensus and EPS SurpriseNavient Corporation Price, Consensus and EPS Surprise Navient Corporation price-consensus-eps-surprise-chart | Navient Corporation Quote Currently, NAVI carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Performance of Navient's Peers Capital One Financial's COF second-quarter 2026 adjusted earnings of $5.81 per share significantly outpaced the Zacks Consensus Estimate of $4.85. The bottom line was up from $5.48 in the prior-year quarter. Results benefited from a rise in net interest income and non-interest income, along with a substantial decline in provisions. Loan growth and improvement in net interest margin were other positives. However, higher expenses and a sequential decline in deposits were undermining factors for COF. Enova International, Inc. ENVA reported second-quarter 2026 adjusted earnings per share of $4.31, which increased from $3.23 in the

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