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Amex Fully Valued But Sallie Mae and Discover Have Room To Run


The strong dollar will not hurt American Express too much because the majority of its business is domestic, but the stock is fully valued at its current level, said Michael Taiano, Senior Analyst at Burke & Quick. Taiano said he is more bullish on shares of Sallie Mae because of the strong demand for high yielding student loans in this low yield environment. He also said the company has a highly scalable, pure play model now that it has spun off its servicing business. Finally, Taiano said he is positive on Discover Financial Services, saying the company's credit performance has been excellent and its loan growth has been stronger than its competitors.