Alliance Data Systems: A Value Pick With Upside In 2020

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About: Alliance Data Systems Corporation (ADS), Includes: SYF
by: BOOX Research
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BOOX Research
Contrarian, long/short equity
Summary

ADS is down 44% over the past year based on a challenging operating environment.

The company is profitable and management sees higher growth next year.

We think the market may be too bearish as the stock trades at a deep discount to industry peers while broader consumer credit fundamentals remain positive.

We rate ADS as a buy.

Alliance Data Systems (NYSE:ADS) provides private label credit cards along with marketing services and loyalty programs for over 145 brands with 43 million active cardholders. It's been a difficult operating environment for the