John Wilson Discover Financial Services LLC DFS-N TOP PICK Aug 05, 2015

Discover Financial (DFS-N) or Visa (V-N)? Has recently come off quite a bit on the back of a missed earnings quarter. They also provided some forward negative guidance. He owns MasterCard (MA-N) which is very similar to Visa in terms of valuations. Visa has a much stronger earnings profile, and given the fact that the technicals are looking a bit rough on this one, he would wait until they turn around a bit and have an earnings surprise.

(A Top Pick Nov 18/14. Down 16.94%.) This is a theme that should have worked, but didn’t. They spent a lot trying to grow their loan book, and the challenge is that earnings growth is going to be a little muted.

It was a real darling for a while. They are more of a card company than a network. The whole sector is under pressure until you see a turn. The technicals are not confirming a positive fundamental story.

This is a card issuer. Numbers were quite favourable today and the space is acting very well. He prefers and owns Synchrony Financial (SYF-N).

This is a direct bank as well as a card business. Very, very strong earnings growth. Also, have a strong loan growth. Really a top pick in the financial services sector. Attractively valued. Cheap and very good growth. Dividend yield of 1.96%.

(A Top Pick April 26/16. Up 5%.) He just got out of this recently. It has been falling along with all of the financials in the last 2 months. He still likes the name.

Payments and financial technology is a great group. He has preferred V-N for a long time with a more attractive business model. It has a great international growth path in front of it. Don’t buy the laggards.

Its merger with Capitol One will likely go ahead under Trump, since Washington will purse fewer anti-trusts cases. Shares soared today and will continue to climb.

The Capital One merger will work, and doesn't fear the Justice Department will block it.