2 Credit Card Stocks to Buy During the Crisis
As the coronavirus crisis continues to take its toll on the U.S. economy, more Americans are relying on credit to get by.
A new survey by CreditCards.com reveals that 47% of U.S. adults now have credit card debt, compared to 43% in March.
And 23% of adults have added to their debt during the crisis.
That’s big news for the credit card industry. But is it really safe to invest in this space, right now?
I asked experts Brian Christopher and Jeff Yastine to share their latest thoughts on two credit card companies on their radar.
They recommended both in March — and it sounds like these companies have plenty further to climb…
Trade No. 1: Discover Is up 35% in 6 Weeks
By Brian Christopher
In the Discover Financial Services Inc. (NYSE: DFS) essay I published on March 26, I told you to wait until shares fell again.
They did shortly thereafter.
They closed at $28.53 on April 3. And they’ve risen more than 35% since.
That’s a solid move in a short period.
Technically, the chart looks promising:
DFS Has Quickly Moved Higher Since April 3
As you can see, the stock has been volatile, but shares are trending in the right direction.
I expect that shares will continue to move higher.
They recently traded up to $45, and they’ll go there again.
Trade No. 2: Visa Is up 15% in 2 Months
By Jeff Yastine
If you’re someone who likes to trade often, as opposed to invest — I’d take profits on Visa Inc. (NYSE: V) now.
A 15% gain in the stock after two months is nice enough.
In an uncertain environment like this one, it’s not a bad thing to take profits here and there while you can, then wait for the next opportunity to come along.
But if you’re a longer-term investor, and you’re in the stock already — I think you’re doing great and got in at a good price.
You can see the recent price action in the chart below:
Visa Keeps Climbing
The stock is an ideal position to benefit in many ways, as I noted in my original recommendation on March 17.
If you don’t own the stock but are interested in buying it, I’d wait for another bout of weakness.
My assumption is that Visa’s stock may bounce around a fair amount, up and down with the market.
That would give you numerous opportunities to buy at somewhat lower prices.
As Brian and Jeff explained, credit card stocks should continue to do well in today’s environment.
But they’re just one of the many opportunities out there right now.
In fact, Jeff just released a brand-new video about an incredible technology that’s revolutionizing manufacturing in America.
This new industry is expected to grow its revenue by 300% or more in the next few years.
That means early investors stand to make a life-changing fortune. But you have to act fast.
And keep an eye out. We’ll continue to bring you updates on your free Smart Profits Daily trades.
Assistant Managing Editor, Banyan Hill Publishing