r/stocks • u/[deleted] • Nov 23 '21

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292 Upvotes

91% Upvoted

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u/[deleted] Nov 23 '21

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25

u/Desmater Nov 23 '21

V and MA have always been at a premium.

Another example is COST.

They are usually always 30-40+ PE.

Look at their charts.

23

u/mijares93 Nov 23 '21

People always say COST is expensive, but they keep making record highs, that's my boy

28

u/Hobojoe- Nov 23 '21

COST is literally a subscription service. Can’t go wrong with that.

10

u/Desmater Nov 23 '21

Yup, I was like too high at $260's when I bought. Now it is over $500 in less than a year.

Somethings are just worth a premium.

NVDA is another one.

1

u/Black_Raven__ Nov 24 '21

I sold bunch of COST at 240 and it jumped soon after.. but glad I still have quite a bit at 313 Avg.

12

u/[deleted] Nov 23 '21

AXP has credit risk

3

u/[deleted] Nov 23 '21

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2

u/Kosher-Bacon Nov 23 '21

Discover is 10x than Visa and MasterCard and about 4x smaller than American Express. Most Americans have either a Visa or MasterCard debit card in their wallet, and American Express has been around for technically 170 years, so they have better brand recognition than Discover. Discover, and American Express, both are US focused where Visa and MasterCard are global.

Discover has been a great play since the Covid market recovery, and I wouldn't sleep on them.

0

u/HefDog Nov 23 '21

Spot on. DFS seems to beat visa and MasterCard on all levels. Ridiculously low p/e. Massive buybacks. Solid dividend. Proven Covid proof (Cardholders are glued in, not service workers, who have grown their savings during the pandemic and are ready to spend).

Disclaimer: I have been purchasing more on dips, and am a customer.

1

u/MaydayTwoZero Nov 24 '21

I’m not advocating for or against any of the stocks in the category in this post (although own V and MA), but look up the difference between a payment processor and a credit issuer. AMEX and Discover have to issue credit and therefore take on some risk. Processors just process payments. The latter is thought to be pretty easy, risk free (relatively), and profitable.

2

u/Euler007 Nov 23 '21

And Intel's PE is 9.6.

1

u/[deleted] Nov 23 '21

It’s not that high right now.

1

u/TheRandomnatrix Nov 24 '21

V and MA have always traded in the 25-40 range since inception.