Please ensure Javascript is enabled for purposes of website accessibility

2 Stocks We're Watching Now

By Motley Fool Staff – Nov 8, 2018 at 2:38PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Here are two stocks on the top of our financial-sector watchlist this week.

Each week, Industry Focus: Financials host Jason Moser and Fool.com contributor Matt Frankel, CFP, discuss one stock they're watching. In this week's installment, Matt makes his case for Synchrony Financial (SYF), while Jason thinks Markel (MKL) is worthy of a closer look.

A full transcript follows the video.

This video was recorded on Nov. 5, 2018.

Jason Moser: Let's wrap up the week here, as we always do, with One to Watch. What's your One to Watch this week, Matt?

Matt Frankel: [laughs] My One to Watch is Synchrony, SYF, actually. Not only is it down about 10% after the lawsuit was announced, but, as I mentioned before, I love their high-yield business model. It's a very efficient company. I had a chance to meet with their management team. I think they have great leadership. There are a couple of really promising avenues they're taking their business. The CareCredit healthcare product has a lot of runway as more healthcare costs are being shifted to the consumer. They're starting to bundle a lot of their store card products together. All of their different home goods retailers, they're going to offer one credit card product that can be used across all of them. Same with auto parts. There's a lot of runway for growth here. As they're bringing in more and more retail deposits, their cost of capital is getting lower. I think it's a great time to get into this at a big discount. And, hopefully, I'll be able to shut up about Synchrony for a few days so I can buy some.

Moser: [laughs] Yeah, we have trading guidelines we have to adhere to here. If we talk about it, we can't buy it; and if we buy it, we have to shut up about it for a while. What's the ticker there for Synchrony, Matt?

Frankel: It's SYF. If I don't mention Synchrony next week, that might be why.

Moser: That's always a good thing to remember. I was trying to figure out, did I want to get Berkshire Hathaway as my One to Watch or Markel. I really love what both their quarters looked like. I'm going to go ahead with Markel, MKL. I'm really enthusiastic about where this company is headed. It's still a fairly small insurer, but they're building this business in that Berkshire Hathaway model. It's exciting from a number of different perspectives. I love the Markel Ventures side of the business. Again, I think Tom Gayner is doing a lot of great things with these guys. I think Markel should be on probably everybody's radar here at this point.

Jason Moser owns shares of Markel. Matthew Frankel, CFP owns shares of BRK-B and Markel. The Motley Fool owns shares of and recommends Markel. The Motley Fool recommends BRK-B. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Markel Stock Quote
Markel
MKL
Synchrony Financial Stock Quote
Synchrony Financial
SYF

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
110%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.