Is Discover Financial Services a Buy?

Discover Financial Services (NYSE: DFS) is a credit card company, but it's also an online bank with about $112 billion in assets. Either way you classify it, it has been a strong performer over the past decade. Discover's stock has returned about 13% on an annualized basis for the past 10 years through the end of the second quarter of 2020. That makes it a top performer among banks; as a credit card company, it has trailed the major players, Visa and Mastercard, but it is different from them in several key ways.

This year, Discover's stock has been hit hard by the coronavirus pandemic, down about 45% year to date. That's worse than the average return for bank stocks and far worse than Visa and Mastercard, which are both relatively flat for the year. Why is Discover underperforming, and is it a buy?

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Source Fool.com