SC - Alliance Data Systems: This Near-Compounder Appears 50-75% Undervalued
Alliance Data Systems (ADS) has been perhaps the worst-performing financial stock over the past 3-4 years. In 2015, the stock peaked at $300 per share, only to drop over the next four years to its current level around $112, down roughly 60%.
The company is a retail-oriented, private-label credit card issuer, for consumers who want, for example, a Victoria's Secret branded card. The stock has suffered mightily as credit card balances at the company have continued to decline amidst the shift away from brick and mortar retail to online spending.
At 5.3x forward 2020 earnings,