Remitly Global (NASDAQ: RELY) has been on a winning streak lately, with its stock price soaring more than 35% in the past two weeks. This surge comes on the back of the company’s stellar fourth-quarter results and its upbeat outlook for the future.
As a leader in processing international money transfers, Remitly saw a 26% increase in revenue, a 35% surge in send volume, and a 19% rise in active customers compared to the same quarter last year. The company also turned a profit, with net income reaching $41 million, a significant improvement from a $6 million net loss in the previous year.
Looking ahead to 2026, Remitly expects revenue growth of 19% to 20%, positive net income, and a 25% to 32% increase in adjusted EBITDA. With Wall Street analysts setting an average price target of $21 per share, investors are eyeing a potential 20% gain in the stock.
While Remitly’s performance has been impressive, another financial stock that investors should consider is Capital One Financial (NYSE: COF). Despite being down 19% year to date, Capital One is poised for a rebound, driven by its recent acquisition of Discover.
The acquisition of Discover, which closed last year, is expected to generate $2.5 billion to $2.7 billion in annual synergies starting in 2027. This strategic move will boost revenue by 25% and earnings by 26% over the next few years. Additionally, Capital One’s shift of popular credit cards to the Discover network is set to increase revenue and reduce costs.
Furthermore, Capital One’s low valuation presents an attractive investment opportunity. While its current P/E ratio may be skewed due to integration costs, its forward P/E ratio of 9 and PEG ratio of 0.20 indicate value territory.
Analysts are bullish on Capital One, with an average price target of $280 per share, suggesting a 42% upside potential in the next 12 months. With its transformation into a diversified, all-weather stock and its attractive valuation, Capital One stands out as a compelling investment option.
In conclusion, while Remitly has shown strong performance, Capital One offers even greater upside potential for investors. By diversifying its business and leveraging synergies from the Discover acquisition, Capital One is well-positioned for growth in the coming years. Investors looking for a value play with significant growth prospects should consider adding Capital One to their portfolio.
