Bank stocks have had a tough go of it in recent years, but things seem to be improving, judging by their recent stock performance. Capital One (NYSE: COF) is one bank that faced pressure as multidecade-high interest rates weighed on the sector as a whole, but its stock has performed much better recently.
The bank made big news in February when it agreed to acquire Discover Financial Services, creating an intriguing opportunity for investors. Here's what you need to know about the acquisition and Capital One's business before buying it today.
Capital One provides banking to customers, but its bread-and-butter business is credit cards. According to The Nilson Report, a newsletter covering the global payment industry, Capital One is the fourth-largest credit card company in the U.S. Only JPMorgan Chase, American Express, and issued more credit cards.
Source Fool.com