This Bank Stock Is Up Nearly 400% From Pandemic Lows and Still a Buy

Shares of Discover Financial Services (NYSE: DFS) sold off after the company's recent earnings report, but it's confusing as to why. The credit card company has always traded at a fairly cheap valuation, and does so today; the thinking goes, unsecured credit card balances are risky, so Discover's price-to-earnings multiple has traditionally been low. The stock nose-dived during the onset of the COVID-19 pandemic, but has nearly quintupled off its pandemic lows, so perhaps those fortunate enough to buy near the bottom are cashing out profits.