Jim Cramer said on Mad Money that Capital One Financial Corporation has become a virtual trampoline, boosted by strong consumer spending and tame credit card delinquencies. He pointed to a 0.9% rise in May retail sales from the previous month and a 6.9% increase from a year earlier as signs of a healthy consumer. Cramer noted that Capital One, a Charitable Trust holding, was previously slammed by higher oil prices but now benefits from offering higher interest rate credit cards. He also highlighted the completed Discover deal, which made Capital One the largest credit card issuer by balances in the United States, giving it greater scale and diversification.
Capital One Financial CorporationStrong consumer spending and tame credit card delinquencies boost Capital One's credit card business.