Company name Alliance Data Systems Corporation
Stock ticker ADS
Live stock price [stckqut]ADS[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Fair
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $73.77
Target stock price (averages with growth) $93.53
Target stock price (averages with no growth) $93.53
Target stock price (manual assumptions) $90.74

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/ads

Alliance Data Systems Corporation, incorporated on February 23, 1995, is a provider of data-driven marketing and loyalty solutions serving consumer-based businesses in a range of industries. The Company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs. The Company operates through three segments: LoyaltyOne, which provides coalition and short-term loyalty programs through the Company’s Canadian AIR MILES Reward Program and BrandLoyalty Group B.V. (BrandLoyalty); Epsilon, which provides end-to-end, integrated direct marketing solutions, and Card Services, which provides risk management solutions, account origination, funding, transaction processing, customer care, collections and marketing services for the Company’s private label and co-brand retail credit card programs. Its client base is diversified across a range of end-markets, including financial services, specialty retail, grocery and drugstore chains, petroleum retail, automotive, hospitality and travel, telecommunications, insurance and healthcare.

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Alliance Data Systems Corporation as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns.

Since ADS is only a Fair company and I know there are many Good Companies out there so I will be removing Alliance Data from my Watch List and finding another company to add to it in its place.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Alliance Data Systems Corporation calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $146.83
  • Growth: 0.2
  • Current EPS (TTM): $17.38
  • P/E: 51
  • Future EPS Calc: $43.24
  • Future Stock Price Calc: $2205.59
  • Target stock price: $1369.5

[/s2If]
I hope that this makes you a Confident Investor.

Symbol Stock Price change today
CRTO Criteo SA (ADR) 4.3%
COHR Coherent, Inc. 3.0277%
ILMN Illumina, Inc. 2.9983%
ADS Alliance Data Systems Corporation 2.9532%
SWKS Skyworks Solutions Inc 2.7652%
AVGO Broadcom Inc 2.4628%
BABA Alibaba Group Holding Ltd 2.1246%
TGS Transportadora de Gas del Sur SA (ADR) 2.1061%
MKSI MKS Instruments, Inc. 1.9053%
PYPL Paypal Holdings Inc 1.8974%
CVGW Calavo Growers, Inc. 1.7614%
CRUS Cirrus Logic, Inc. 1.6826%
MTZ MasTec, Inc. 1.6779%
THRM Gentherm Inc 1.5181%
LRCX Lam Research Corporation 1.4479%
EA Electronic Arts Inc. 1.2428%
AMAT Applied Materials, Inc. 1.2244%
MA Mastercard Inc 1.182%
ALGN Align Technology, Inc. 1.1807%
KNX Knight-Swift Transportation Holdings Inc 1.1276%
V Visa Inc 1.1276%
LULU Lululemon Athletica inc. 1.119%
GOOGL Alphabet Inc Class A 1.0863%
SBUX Starbucks Corporation 1.0281%
MKTX MarketAxess Holdings Inc. 1.0225%
TMUS T-Mobile Us Inc 0.9726%
FB Facebook, Inc. Common Stock 0.8957%
DPZ Domino’s Pizza, Inc. 0.8061%
BKNG Booking Holdings Inc 0.7962%
ANET Arista Networks Inc 0.7883%
SUI Sun Communities Inc 0.6075%
NXST Nexstar Media Group Inc 0.5208%
TNET TriNet Group Inc 0.4546%
PATK Patrick Industries, Inc. 0.3878%
AMN AMN Healthcare Services, Inc. 0.3687%
IBP Installed Building Products Inc 0.2525%
MEI Methode Electronics Inc. 0.2013%
ADBE Adobe Systems Incorporated -0.0147%
AAPL Apple Inc. -0.0402%
HZO MarineMax Inc -0.0511%
AMZN Amazon.com, Inc. -0.0548%
NSP Insperity Inc -0.1774%
STZ Constellation Brands, Inc. Class A -0.3348%
CBPO China Biologic Products Holdings Inc -0.5674%
MU Micron Technology, Inc. -0.6386%
ABMD ABIOMED, Inc. -0.6657%
NVDA NVIDIA Corporation -0.7988%
ALXN Alexion Pharmaceuticals, Inc. -0.8878%
LGIH LGI Homes Inc -0.9631%
GTN Gray Television, Inc. -1.3469%
ULTA Ulta Beauty Inc -1.539%
JAZZ Jazz Pharmaceuticals PLC -1.917%
HSKA Heska Corp -2.2165%
WCG WellCare Health Plans, Inc. -2.5802%
REGN Regeneron Pharmaceuticals Inc -2.6787%
NFLX Netflix, Inc. -4.4907%
UNH UnitedHealth Group Inc -5.1822%

Stock ticker Stock name Last Close Recommendation
AAPL Apple Inc. $188.4700 Very Concerned, may need to wait
ABMD ABIOMED, Inc. $276.3900 Very Concerned, may need to wait
ADBE Adobe Systems Incorporated $262.3400 Concerned, but watch close as good things may happen soon
ADS Alliance Data Systems Corporation $171.0600 Some Concerns, may need to wait
ALGN Align Technology, Inc. $268.9600 Concerned, but watch close as good things may happen soon
ALXN Alexion Pharmaceuticals, Inc. $134.6000 Concerned, but watch close as good things may happen soon
AMAT Applied Materials, Inc. $38.9300 Very Concerned, may need to wait
AMN AMN Healthcare Services, Inc. $46.1800 Very Concerned, may need to wait
AMZN Amazon.com, Inc. $1765.7000 Concerned, but watch close as good things may happen soon
ANET Arista Networks Inc $311.3300 Strong Buy or Hold
AVGO Broadcom Inc $295.9700 Strong Buy or Hold
BABA Alibaba Group Holding Ltd $177.0300 Very Concerned, may need to wait
BKNG Booking Holdings Inc $1752.1100 Very Concerned, may need to wait
CBPO China Biologic Products Holdings Inc $88.9800 Concerned, but watch close as good things may happen soon
COHR Coherent, Inc. $135.5200 Very Concerned, may need to wait
CRTO Criteo SA (ADR) $19.1400 Very Concerned, may need to wait
CRUS Cirrus Logic, Inc. $41.7800 Very Concerned, may need to wait
CVGW Calavo Growers, Inc. $84.7700 Strong Buy or Hold
DPZ Domino’s Pizza, Inc. $247.5800 Some Concerns, may need to wait
EA Electronic Arts Inc. $100.6700 Concerned, but watch close as good things may happen soon
FB Facebook, Inc. Common Stock $165.8700 Very Concerned, may need to wait
GOOGL Alphabet Inc Class A $1178.0100 Very Concerned, may need to wait
GTN Gray Television, Inc. $21.6900 Very Concerned, may need to wait
HSKA Heska Corp $85.7400 Possible Buy or Hold, but some concerns
HZO MarineMax Inc $18.6800 Very Concerned, may need to wait
IBP Installed Building Products Inc $48.2900 Strong Buy or Hold
ILMN Illumina, Inc. $302.0700 Very Concerned, may need to wait
JAZZ Jazz Pharmaceuticals PLC $137.2900 Concerned, but watch close as good things may happen soon
KNX Knight-Swift Transportation Holdings Inc $31.3800 Very Concerned, may need to wait
LGIH LGI Homes Inc $63.5500 Strong Buy or Hold
LRCX Lam Research Corporation $177.6400 Very Concerned, may need to wait
LULU Lululemon Athletica inc. $146.8000 Possible Buy or Hold, but some concerns
MA Mastercard Inc $232.5200 Concerned, but watch close as good things may happen soon
MEI Methode Electronics Inc. $27.6800 Very Concerned, may need to wait
MKSI MKS Instruments, Inc. $89.1000 Strong Buy or Hold
MKTX MarketAxess Holdings Inc. $245.0800 Strong Buy or Hold
MTZ MasTec, Inc. $46.1400 Very Concerned, may need to wait
MU Micron Technology, Inc. $39.2300 Very Concerned, may need to wait
NFLX Netflix, Inc. $353.3700 Very Concerned, may need to wait
NSP Insperity Inc $121.7000 Very Concerned, may need to wait
NVDA NVIDIA Corporation $176.5000 Strong Buy or Hold
NXST Nexstar Media Group Inc $109.2800 Concerned, but watch close as good things may happen soon
PATK Patrick Industries, Inc. $43.5800 Very Concerned, may need to wait
PYPL Paypal Holdings Inc $103.0700 Strong Buy or Hold
REGN Regeneron Pharmaceuticals Inc $402.8700 Very Concerned, may need to wait
SBUX Starbucks Corporation $72.7400 Strong Buy or Hold
STZ Constellation Brands, Inc. Class A $170.1200 Strong Buy or Hold
SUI Sun Communities Inc $118.1800 Strong Buy or Hold
SWKS Skyworks Solutions Inc $80.5900 Very Concerned, may need to wait
TGS Transportadora de Gas del Sur SA (ADR) $12.5100 Very Concerned, may need to wait
THRM Gentherm Inc $36.8600 Very Concerned, may need to wait
TMUS T-Mobile Us Inc $72.2400 Very Concerned, may need to wait
TNET TriNet Group Inc $58.6300 Very Concerned, may need to wait
ULTA Ulta Beauty Inc $346.0500 Strong Buy or Hold
UNH UnitedHealth Group Inc $241.7100 Very Concerned, may need to wait
V Visa Inc $154.2200 Very Concerned, may need to wait
WCG WellCare Health Plans, Inc. $259.8100 Possible Buy or Hold, but some concerns

Symbol Stock Price change today
ADS Alliance Data Systems Corporation 3.5769%
ALXN Alexion Pharmaceuticals, Inc. 3.4016%
HSKA Heska Corp 2.9067%
ANET Arista Networks Inc 2.845%
REGN Regeneron Pharmaceuticals Inc 2.6886%
KNX Knight-Swift Transportation Holdings Inc 2.3627%
STZ Constellation Brands, Inc. Class A 2.184%
TNET TriNet Group Inc 2.132%
MKTX MarketAxess Holdings Inc. 1.907%
NSP Insperity Inc 1.9031%
NXST Nexstar Media Group Inc 1.9007%
ULTA Ulta Beauty Inc 1.8505%
NVDA NVIDIA Corporation 1.7781%
AVGO Broadcom Inc 1.6669%
CVGW Calavo Growers, Inc. 1.6496%
PYPL Paypal Holdings Inc 1.5756%
V Visa Inc 1.4834%
TMUS T-Mobile Us Inc 1.4244%
COHR Coherent, Inc. 1.2906%
ADBE Adobe Systems Incorporated 1.2659%
ILMN Illumina, Inc. 1.2479%
MA Mastercard Inc 1.2456%
ALGN Align Technology, Inc. 1.1992%
DPZ Domino’s Pizza, Inc. 1.1708%
CRUS Cirrus Logic, Inc. 1.1658%
MTZ MasTec, Inc. 0.9843%
BKNG Booking Holdings Inc 0.9404%
MKSI MKS Instruments, Inc. 0.9158%
SBUX Starbucks Corporation 0.9129%
FB Facebook, Inc. Common Stock 0.8359%
MEI Methode Electronics Inc. 0.8324%
SUI Sun Communities Inc 0.8312%
SWKS Skyworks Solutions Inc 0.8226%
PATK Patrick Industries, Inc. 0.6874%
AMAT Applied Materials, Inc. 0.5838%
EA Electronic Arts Inc. 0.58%
LRCX Lam Research Corporation 0.536%
AMZN Amazon.com, Inc. 0.5354%
THRM Gentherm Inc 0.1902%
CBPO China Biologic Products Holdings Inc 0.1822%
GTN Gray Television, Inc. 0.0911%
IBP Installed Building Products Inc 0.0641%
LGIH LGI Homes Inc -0.1153%
HZO MarineMax Inc -0.2166%
JAZZ Jazz Pharmaceuticals PLC -0.2775%
BABA Alibaba Group Holding Ltd -0.386%
MU Micron Technology, Inc. -0.5672%
GOOGL Alphabet Inc Class A -0.6297%
AAPL Apple Inc. -1.0332%
AMN AMN Healthcare Services, Inc. -1.1484%
UNH UnitedHealth Group Inc -1.4057%
NFLX Netflix, Inc. -1.7093%
LULU Lululemon Athletica inc. -2.0603%
TGS Transportadora de Gas del Sur SA (ADR) -2.963%
WCG WellCare Health Plans, Inc. -3.9297%
ABMD ABIOMED, Inc. -8.6904%
CRTO Criteo SA (ADR) -17.1975%

Stock ticker Stock name Last Close Recommendation
AAPL Apple Inc. $195.0900 Strong Buy or Hold, but there are some concerns
ABMD ABIOMED, Inc. $337.4300 Possible Buy or Hold, but some concerns
ADBE Adobe Systems Incorporated $264.1800 Concerned, but watch close as good things may happen soon
ADS Alliance Data Systems Corporation $171.4200 Possible Buy or Hold, but some concerns
ALGN Align Technology, Inc. $280.7300 Strong Buy or Hold, but there are some concerns
ALXN Alexion Pharmaceuticals, Inc. $134.2100 Concerned, but watch close as good things may happen soon
AMAT Applied Materials, Inc. $41.3300 Strong Buy or Hold
AMN AMN Healthcare Services, Inc. $49.2400 Possible Buy or Hold, but some concerns
AMZN Amazon.com, Inc. $1819.2600 Strong Buy or Hold, but there are some concerns
ANET Arista Networks Inc $315.0200 Strong Buy or Hold, but there are some concerns
AVGO Broadcom Inc $296.8000 Strong Buy or Hold
BABA Alibaba Group Holding Ltd $181.5000 Concerned, but watch close as good things may happen soon
BKNG Booking Holdings Inc $1774.3600 Possible Buy or Hold, but some concerns
CBPO China Biologic Products Holdings Inc $88.4200 Strong Buy or Hold
COHR Coherent, Inc. $143.2600 Strong Buy or Hold
CRTO Criteo SA (ADR) $26.5100 Very Concerned, may need to wait
CRUS Cirrus Logic, Inc. $43.2300 Strong Buy or Hold
CVGW Calavo Growers, Inc. $83.2700 Very Concerned, may need to wait
DPZ Domino’s Pizza, Inc. $245.0500 Very Concerned, may need to wait
EA Electronic Arts Inc. $104.8800 Strong Buy or Hold
FB Facebook, Inc. Common Stock $166.0800 Very Concerned, may need to wait
GOOGL Alphabet Inc Class A $1236.1300 Strong Buy or Hold, but there are some concerns
GTN Gray Television, Inc. $22.4800 Concerned, but watch close as good things may happen soon
HSKA Heska Corp $85.9000 Possible Buy or Hold, but some concerns
HZO MarineMax Inc $18.8100 Very Concerned, may need to wait
IBP Installed Building Products Inc $45.3800 Very Concerned, may need to wait
ILMN Illumina, Inc. $319.2100 Strong Buy or Hold
JAZZ Jazz Pharmaceuticals PLC $136.0300 Concerned, but watch close as good things may happen soon
KNX Knight-Swift Transportation Holdings Inc $32.2300 Very Concerned, may need to wait
LGIH LGI Homes Inc $56.1300 Very Concerned, may need to wait
LRCX Lam Research Corporation $183.8000 Strong Buy or Hold
LULU Lululemon Athletica inc. $148.9100 Possible Buy or Hold, but some concerns
MA Mastercard Inc $235.8700 Strong Buy or Hold, but there are some concerns
MEI Methode Electronics Inc. $30.0200 Concerned, but watch close as good things may happen soon
MKSI MKS Instruments, Inc. $92.5700 Strong Buy or Hold, but there are some concerns
MKTX MarketAxess Holdings Inc. $240.1600 Strong Buy or Hold
MTZ MasTec, Inc. $47.7700 Concerned, but watch close as good things may happen soon
MU Micron Technology, Inc. $43.9900 Strong Buy or Hold
NFLX Netflix, Inc. $377.8700 Strong Buy or Hold
NSP Insperity Inc $126.9700 Concerned, but watch close as good things may happen soon
NVDA NVIDIA Corporation $183.9400 Strong Buy or Hold, but there are some concerns
NXST Nexstar Media Group Inc $108.6500 Concerned, but watch close as good things may happen soon
PATK Patrick Industries, Inc. $43.4100 Very Concerned, may need to wait
PYPL Paypal Holdings Inc $104.1500 Strong Buy or Hold, but there are some concerns
REGN Regeneron Pharmaceuticals Inc $402.5900 Very Concerned, may need to wait
SBUX Starbucks Corporation $72.2600 Strong Buy or Hold
STZ Constellation Brands, Inc. Class A $169.3900 Very Concerned, may need to wait
SUI Sun Communities Inc $117.4300 Concerned, but watch close as good things may happen soon
SWKS Skyworks Solutions Inc $86.0700 Strong Buy or Hold
TGS Transportadora de Gas del Sur SA (ADR) $14.2600 Very Concerned, may need to wait
THRM Gentherm Inc $37.9700 Some Concerns, may need to wait
TMUS T-Mobile Us Inc $72.2600 Very Concerned, may need to wait
TNET TriNet Group Inc $61.8000 Concerned, but watch close as good things may happen soon
ULTA Ulta Beauty Inc $335.1300 Strong Buy or Hold
UNH UnitedHealth Group Inc $252.0200 Very Concerned, may need to wait
V Visa Inc $155.8000 Strong Buy or Hold, but there are some concerns
WCG WellCare Health Plans, Inc. $250.0200 Possible Buy or Hold, but some concerns