72.90 0.00 (0.00%)
After hours: 4:32PM EDT
|Bid||71.56 x 100|
|Ask||79.94 x 100|
|Day's Range||72.49 - 74.39|
|52 Week Range||57.50 - 81.93|
|PE Ratio (TTM)||13.45|
|Forward Dividend & Yield||1.40 (1.97%)|
|1y Target Est||N/A|
Monday, April 9: Chinese newspapers talk tough on trade, Viacom wants a better bid from CBS, credit card companies won’t require signatures anymore
Discover Financial Services (DFS) is tracked by 27 analysts in April 2018, of which seven analysts suggested a “hold,” and one analyst gave a “sell” rating on its stock. Ten analysts recommended a “buy,” and the remaining nine analysts gave “strong buy” ratings on DFS.
Discover Financial Services (DFS) has a price-to-earnings ratio on an NTM (next-12-months) basis of ~8.9x, which highlights its lower valuations. The average price-to-earnings ratio of Discover’s peers is ~14.0x.
Discover Financial Services’ (DFS) Cashback Checking product contains a rewards program that allows customers to earn cashback bonuses by making purchases using the associated debit card. This product doesn’t require a minimum opening deposit or minimum balance, and there are no monthly fees. Customers can use more than 60,000 MoneyPass and Allpoint ATMs located within the US without incurring transaction fees.
In late 2017, the Tax Cuts and Jobs Act was passed, in which corporate taxes were reduced substantially. Discover Financial Services (DFS) has its operations mainly in the US, allowing the company to pay a lower tax rate, which could benefit its long-term growth. Discover expects to pay lower taxes, which would result in higher cash flows that the company could deploy in its business activities.
In 2017, Discover Financial Services (DFS) exceeded analysts’ estimates on its earnings per share (or EPS) in 3Q17. The company missed its EPS estimates in the other three quarters of 2017. However, its competitors (XLF) American Express (AXP) and Mastercard (MA) have exceeded analysts’ expectations throughout 2017.
Discover Financial Services (DFS) saw favorable momentum in its business in fiscal 2017 and in 4Q17. According to the company’s management, the momentum would also be visible in 2018, which could help the company in terms of return on equity (or ROE) as well as growth. Wall Street analysts gave a high estimate of $2.02 and a low estimate of $1.65 on Discover’s earnings per share (or EPS) for 1Q18.
Mastercard (MA) saw positive momentum in its business in 2017 thanks to the adoption of e-commerce. The company saw a rise of 18% in gross revenue in 2017 compared to 2016. Moving forward, Mastercard and its competitor (XLF) Visa (V) will likely experience upward trends in their revenues mainly due to rising inflation as a result of trade war fears.
On April 9, 2018, Mastercard (MA) made an announcement regarding the integration of its Masterpass service with the My Phillips 66 app. Masterpass saves the information that’s required for the execution of transactions, such as shipping information and card information. This move could help Mastercard witness a rise in its number of transactions.
Valuing DFS, a financial stock, can be daunting since consumer financials generally have cash flows that are impacted by regulations that are not imposed upon other industries. For example, businessesRead More...
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Citi initiated coverage of four U.S. credit card companies Thursday, two of which were given bullish ratings and two given neutral ratings. The Analyst Citi's Jill Shea initiated coverage of the following ...
Visa (V) reported strong quarterly results in its fiscal 1Q18, which ended on December 31, 2017. Its performance was aided by the positive momentum it witnessed in its core metrics globally. The company saw especially strong momentum in the United States due to the holiday season as well as growth in e-commerce.
Every business nowadays is adopting digital tools in order to witness positive momentum in its operating revenue, and Visa (V) is no exception. Last year, the company saw strong momentum in its core metrics, which helped it gain investors’ attention. The technological initiatives the company has been adopting have also been primary contributors to its momentum.
In a previous article, I compared Amazon.com, Inc. (NASDAQ:AMZN) to Walmart Inc (NYSE:WMT). Currently, Amazon enjoys a high level of growth that few want to challenge. The short-term thinking that drives Amazon stock drove the stock price downward as President Donald Trump again weighed in on the company.
The People’s Bank of China has announced that it will be allowing foreign companies to enter its domestic payments market. Mastercard (MA) and Visa (V) will be increasing their presences in China if they comply with the requirements being laid out. There’s a huge opportunity in China’s payment market, which could prove beneficial for the payment giants (XLF).
The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Index (PMI) data, output in the Financials sector is rising.