Discover Financial Services: Patience Is Virtue In This Economic Environment

Summary

  • Discover Financial Services has been a good investment for investors in the past few years.
  • The company continues to report solid growth metrics in key areas of the business.
  • However, given the current economic uncertainty and market conditions, we believe that investors should "HOLD" and take a wait-and-see approach as more news comes out.
  • We believe 2020 lows can serve as a reasonable benchmark to the extent of a potential downside.

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Thesis

Discover Financial Services (DFS) is a company with an all-around solid value proposition based on its business performance and shareholder returns. We like the company's history of growth and improvements in key lines of its business. However, in our first

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Sweet Minute Capital produces high-quality research on contrarian investment ideas, focusing on various industries with potential for high growth of shareholder value. We strive to uncover under-appreciated stocks that are priced well below their long-term fundamental value and can generate outsized shareholder returns for the long term. The firm also specializes in producing research that focuses on easy-to-understand concepts that are accessible to all readers.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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