GaryPhoto
Introduction
Stocks that are inflation prone have been falling in price over the past few months. And loan and credit card companies are part of this group. Discover Financial (DFS) has seen over a 20% price decline this year, so
Discover Financial Services: Still Strong But The Risk-Reward Has Changed
Summary
- Discover is still seeing great financial results and low credit metrics.
- But the risk-reward has changed, as prolonged high inflation will affect the business negatively.
- Because of this I'm not a buyer unless price is below 1.5x P/BV.
Graduate from Plymouth State UniversityB.S. Business Admin./Minor EconomicsRetail Investor Long Term (5+ years) & Value Strategy
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.
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