Discover Financial Services (NYSE: DFS) has flown under the radar compared to other banks and credit card companies, particularly in the past year. But the company posted strong fourth-quarter and year-end earnings on Jan. 19, and investors should pay attention to this.
There are some numbers and trends in that report showing that this stock could be poised for a bounce-back year. Let's examine why this wildly undervalued stock may be ready for the start of a bull run in 2023.
Discover Financial Services is often seen as the other credit card company, next to its much better-known competitors Visa , Mastercard , and American Express . But it is different from its competitors in some important ways. It's a closed-loop network, meaning it issues the cards, lends the money, and processes the transactions all on its network. American Express is also a closed-loop network, but Discover's model is different from American Express's -- and that difference proved key to its success last year.
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Why This Wildly Undervalued Stock Is Ready for a Bull Run In 2023