Medallion Financial (NASDAQ:TAXI) provides loans to taxi drivers in New York City who want to buy a taxi medallion. While it may sound like the company has a nice niche market to work in, that market has recently been invaded by the likes of Uber and Lyft, which are turning the taxi business upside down. Because of these new threats, investors have been bailing out of Medallion in droves, sending the stock down 20% over the last year.
But according to Financials analyst David Hanson on today's Stock of the Day, it's this narrative that has hurt the company, not the fundamentals of Medallion itself. In fact, David wants investors to do some research themselves and not blindly buy into the idea that Medallion is going to be run out of town. He encourages investors to keep an eye on Uber and Lyft, but he's still confident in Medallion Financial.
David Hanson has no position in any stocks mentioned. Mark Reeth has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.