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