In the Consumer Finance sub-industry of the Financials sector is... you guessed it:
Discover Financial Services (DFS).
Otherwise, I'd probably be saying "Don't Leave Home Without This Stock" or "What's In Your Portfolio?" or... I don't know what H&R Block's slogan is!?!
Moving on.
All of the ratios that I use to rank the stocks within the S&P 500 Index and then their respective sectors and sub-industries are saying the same thing for this group, so I'm only going to publish one of the ratios today.
The Sortino Ratio
And just so we're clear, when I say that Discover Financial Services is "The Stock That Pays You Back," I am not talking about dividends.
I'm talking about increasing stock prices.
To that end, let's take a look at my current trading signals for each of these 4 stocks:
That's right, you would have had to buy DFS 3+ years ago to get all of that that roughly 214% gain...
Does anybody (besides Warren Buffett) actually hold stocks that long anymore?
I do.
Personally, I think less trading is better trading.
I like long-term capital gains.
I don't like transaction costs and I really don't like paying taxes.
But that's just me.
Disclaimer: I do not own any of the stocks mentioned in this post nor do I plan to open any positions in any of these stocks in the next 72 hours.
Discover Financial Services (DFS).
Otherwise, I'd probably be saying "Don't Leave Home Without This Stock" or "What's In Your Portfolio?" or... I don't know what H&R Block's slogan is!?!
Moving on.
All of the ratios that I use to rank the stocks within the S&P 500 Index and then their respective sectors and sub-industries are saying the same thing for this group, so I'm only going to publish one of the ratios today.
The Sortino Ratio
| Rank | Symbol | Company | Average Weekly Excess Return % | Downside Deviation % | Sortino Ratio |
|---|---|---|---|---|---|
| 1 | DFS | Discover Financial Services | +0.49% | 2.22% | +0.2216 |
| 2 | HRB | Block H&R | +0.32% | 2.55% | +0.1240 |
| 3 | AXP | American Express Co | +0.15% | 1.53% | +0.1008 |
| 4 | COF | Capital One Financial | -0.02% | 2.34% | -0.0082 |
And just so we're clear, when I say that Discover Financial Services is "The Stock That Pays You Back," I am not talking about dividends.
I'm talking about increasing stock prices.
To that end, let's take a look at my current trading signals for each of these 4 stocks:
| Symbol | Company | Buy Signal Date | Buy Signal Price | Closing Price 7/26/2013 | Current Trade Return % |
|---|---|---|---|---|---|
| DFS | Discover Financial Services | 4/19/2010 | $15.75 | $49.45 | 213.97% |
| HRB | Block H&R | 7/9/2012 | $15.91 | $30.49 | 91.64% |
| AXP | American Express Co | 1/30/2012 | $51.38 | $75.34 | 46.63% |
| COF | Capital One Financial | 5/6/2013 | $59.51 | $68.76 | 15.54% |
That's right, you would have had to buy DFS 3+ years ago to get all of that that roughly 214% gain...
Does anybody (besides Warren Buffett) actually hold stocks that long anymore?
I do.
Personally, I think less trading is better trading.
I like long-term capital gains.
I don't like transaction costs and I really don't like paying taxes.
But that's just me.
Disclaimer: I do not own any of the stocks mentioned in this post nor do I plan to open any positions in any of these stocks in the next 72 hours.
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