NEW YORK ( TheStreet) -- Following Thursday's market pain -- especially for bank stocks -- investors need to move away from the screaming headlines for a moment and consider that nothing has really changed in two days, and the price action underscores some fantastic opportunities.
Following Warren Buffett's mantra of being "greedy when others are fearful," let's highlight some of the bargains:
Despite the sluggish economy, the lenders with the highest concentration in credit card loans -- including, of course, American Express (AXP - Get Report), Discover Financial Services (DFS) and also Capital One (COF) -- have all done an excellent job working through problem loans, and have been posting fantastic earnings results. That means a healthy generation of excess capital, which will support share prices one way or another. American Express repurchased $1 billion in common shares during the second quarter, and announced another $1 billion buyback plan in July. Those are very significant buybacks for a stock with a $56 billion market capitalization.
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