|Bid||0.00 x 800|
|Ask||0.00 x 800|
|Day's Range||80.36 - 81.46|
|52 Week Range||54.36 - 82.51|
|Beta (3Y Monthly)||1.59|
|PE Ratio (TTM)||9.98|
|Earnings Date||Jul 23, 2019|
|Forward Dividend & Yield||1.60 (1.97%)|
|1y Target Est||87.85|
Vanguard founder Jack Bogle helped spearhead the low-cost index fund, putting average returns within reach of every...
Credit cards are now widely accepted in China—and one issuer, Discover, leads the pack, due to its deal with China UnionPay, the Chinese bankcard network.
It's been a decade since Visa (NYSE:V) stock went public. When the IPO of Visa stock took place, things were certainly looking bleak, as the financial crisis was deepening. Consider that the offering came a week after JPMorgan (NYSE:JPM) acquired Bear Stearns for a measly $2 per share (the deal also required a mega loan from the Federal Reserve).Source: Kārlis Dambrāns via FlickrDespite all that, investors still bought $17.9 billion of V stock. On its first day of trading, V stock price rose by an impressive 28%.Anyone who bought Visa stock during its IPO and held onto it would have benefited from hefty gains. For the past ten years, the average annual return of V stock was 28.28%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 A-Rated Stocks to Buy for the Rest of 2019 While all this is great, what can we expect in the years ahead? Is V stock still a good buy? To find out, let's take a look at three pros and cons of Visa stock: Visa Stock Pro: Dominant PlatformVisa operates the world's largest payment network, with 3.3 million cards in use across the globe. The company processes an enormous 188.1 billion transactions per year.The result is that Visa has been able to benefit from powerful network effects. That means that the more consumers become part of the system, the more attractive it is for merchants to participate in it. As a result, it is extremely difficult for other companies to effectively compete with Visa. Besides Visa, only Mastercard (NYSE:MA), American Express (NYSE:AXP) and Discover Financial Services (NYSE:DFS) have credit-card networks in the U.S. Visa Stock Pro: InnovationVisa continues to invest heavily in R&D. For example, the company has built Visa Direct, which enables payments to be sent to credit cards.Then there is the company's tokens. which are used for digital payments. This technology has been shown to greatly reduce fraud, but is also quite convenient.M&A and venture-capital investments have been critical for bolstering Visa's innovation. Note that Visa has taken equity positions in companies like Square (NYSE:SQ), Klarna, Payworks, Stripe and SolarisBank. Visa Stock Pro: Strong FinancialsAs shown by the company's, second-quarter results, released in April, Visa's growth remains fairly steady. Its revenues increased 8% to $5.5 billion, as there was strength across all its main businessesVisa's margins remain juicy, at over 54%. In Q2, its net income came in at $3 billion, up 14% year-over-year.And its balance sheet is solid. It has about $15 billion of cash. Visa Stock Con: Regulatory RiskA key part of Visa's business model is interchange fees. But for many merchants, those fees have become a costly burden. So they have lobbied in multiple countries, including the U.S., to convince regulators to reduce the fees. If they succeed, Visa's bottom line would definitely be adversely impacted. According to the company's 10-K:"When we cannot set default interchange reimbursement rates at optimal levels, issuers and acquirers may find our payments system less attractive. This may increase the attractiveness of other payments systems, such as our competitors' closed-loop payments systems with direct connections to both merchants and consumers. We believe some issuers may react to such regulations by charging new or higher fees, or reducing certain benefits to consumers, which make our products less appealing to consumers. Some acquirers may elect to charge higher merchant discount rates regardless of the Visa interchange reimbursement rate, causing merchants not to accept our products or to steer customers to alternate payments systems or forms of payment." Visa Stock Con: CompetitionVisa faces intense competition from alternate payment providers, such as PayPal (NASDAQ:PYPL), Alibaba's (NYSE:BABA) Alipay and China's WeChat. All of those competitors have the benefit of massive digital platforms.Then there is Facebook (NASDAQ:FB), which is creating a cryptocurrency that uses blockchain technology. Called Libra, FB's cryptocurrency is expected to hit the market next year, with a focus on consumers who don't use banks. If it catches on,Visa stock price could be negatively impacted, since FB has the benefit of its 2+ billion user base. Visa Stock Con: ValuationGiven Visa's competitive advantages, Visa stock does deserve to trade at a premium. But then again, the valuation of V stock has become steep. Note that the forward price-earnings ratio of V stock is about 28 and that Visa stock does not pay a dividend. To put that into perspective, Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) has a PE ratio of 21 and FB is at roughly the same level. Those companies are also growing much more quickly than Visa.As for Wall Street analysts, they remain bullish on V stock, but their enthusiasm is tempered. Based on analysts' average target price on V, Visa stock price is expected to climb about 13%. The Verdict on VisaVisa certainly has some major risk factors. Perhaps the most important one is its competition. As we've seen in various industries, startups can unleash disruption quickly.But so far, Visa has done a good job of innovating. Moreover, the overall credit-card market is likely to grow in a non-cyclical manner. Keep in mind that, worldwide, consumers still use cash and checks to pay for about $17 trillion of goods and services. Consequently, there's still a great deal of room for credit-card usage to increase. There are also big opportunities for Visa in business-to-business transactions and peer-to-peer payments.Given all of Visa's positive attributes - including its strong financials, robust platform and powerful technologies - the pros of V stock outweigh its cons.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post 3 Pros and 3 Cons of Visa Stock appeared first on InvestorPlace.
Discover Financial Services plans to report its second quarter 2019 results after the market closes on Tuesday, July 23, 2019. The earnings release will be available through Discover's Investor Relations website at https://investorrelations.discover.com.
Discover Financial Services (DFS) announced today that its capital plan for the four quarters ending June 30, 2020 contemplates share repurchases of up to $1.63 billion during the four quarters ending June 30, 2020 and an increase in the company’s quarterly dividend from $0.40 to $0.44 per share of common stock. The Board of Directors is scheduled to approve a new share repurchase program and will consider the dividend increase at its July meeting. The company’s capital plan contemplates actions that maintain capital ratios to meet regulatory and legal requirements and support the company’s funding and other capital markets activities.
Discover’s credit card mobile app, as well as its website, Discover.com, ranked highest in customer satisfaction among U.S. credit card companies, according to the J.D. Power U.S. Credit Card Mobile App Satisfaction StudySM and the U.S.
Discover has once again been recognized by IDG’s Computerworld as one of the 2019 Best Places to Work in IT, marking the 16th year the company has been recognized as a best place to work for information technology professionals. Computerworld developed the list based on extensive feedback from IT professionals at small, midsize and large companies. The evaluation is based on company offerings in categories such as benefits, career development, training and retention.
What does an investor do with an opportunity like Visa (NYSE:V)? The Visa stock price continues to stay elevated, at over 27-times forward earnings. Of the 40 largest U.S.-listed stocks by market capitalization, only Amazon (NASDAQ:AMZN) and rival Mastercard (NYSE:MA) sport higher valuations.Source: Shutterstock And yet V stock certainly seems to merit a premium valuation. Few large-capitalization stocks can match its near-term growth prospects. Long-term opportunities come in several forms: lower use of cash worldwide, international expansion, and a move into business-to-business (B2B) offerings.Does an investor follow the Warren Buffett maxim that it's "far better to own a wonderful company at a fair price than a fair company at a wonderful price," as I argued back in 2017? Or does valuation matter, particularly in a bull market seemingly running on fumes?InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor now, Visa stock seems a worthwhile bet. But investors probably have to temper their expectations. The next decade is not going to look like the last one. The Incredible Rise in the Visa Stock PriceLooking backwards, investors certainly missed a huge opportunity in Visa stock. Over the past ten years, shares have returned 953%, not including an admittedly modest dividend. Those gains haven't come just because of the bull market either. In 2009, the company earned 81 cents per share (adjusting for the company's 2015 stock split). A decade ago, the stock (again, on a split-adjusted basis) traded for $16-plus, implying a P/E multiple right at 20x. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 Relative to 2019 expectations, the multiple now sits at 31x. And there are two ways to look at that expansion. The first is that the incredible gains in the Visa stock price are coming mostly from higher earnings. Based on the Street's expectations for 2019, V should climb nearly 500% from 2009 levels.The second, however, is a more difficult question: can the multiples assigned V stock really go much higher? This is a much larger company, which makes percentage growth more difficult to achieve. Yet investors now are paying 50%-plus more for the same dollar of earnings. As impressive as Visa's opportunities are, it's tough to argue that its growth potential is better now than it was a decade ago.Obviously, the market today is in much better shape than in June 2009, when it was just three months removed from financial crisis lows. But that's kind of the point: Visa's earnings multiples can't expand much more without the broad market moving higher.In that scenario, earnings growth still can drive returns -- again, profits are expected to rise 15%-plus in 2020. But roughly 16% annual returns (including the dividend) might seem disappointing in the context of the recent performance. Is V Stock the Best Play?As incredible as the performance of Visa stock seems, there's something more incredible: Mastercard. Visa has returned nearly 1,000% in a decade, yet V shares have underperformed their rival over that span. In fact, MA has been the better pick over one, three, and five-year periods as well. Its 10-year return is a staggering 1,460%.At the moment, MA actually is slightly more expensive on an earnings basis than V stock. Mastercard has greater exposure to non-U.S. payments, and thus, at least in theory, more room for growth. And while past performance doesn't guarantee future performance, the better returns from Mastercard shares are at least worth considering.Of course, Visa and Mastercard aren't the only two stocks in the space, either. Will Healy this month highlighted a potential opportunity in Discover Financial Services (NYSE:DFS), which trades at a substantial discount to both V and MA despite significant potential risk in China. American Express (NYSE:AXP) has been an inconsistent performer, but offers value as well.The stories of the four stocks aren't the same; at the moment, it's foolish to argue that DFS or AXP should be treated like their rivals. But when considering V stock at these multiples, investors should at least keep an open mind toward other stocks in the space. Visa Looks Good, but Not GreatAt the least, the next decade for the Visa stock price is not going to look like the last decade. That's probably not surprising: a repeat of the 950%-plus gains would give Visa a market cap of some $4 trillion.But performance could be good -- and still far short of the standard Visa has set. Bear in mind that if V stock appreciated at 10.5% a year for the next decade, it would reach a $1 trillion market cap ten years from now. Maybe that's not unrealistic in a world where credit-card usage continues to rise. Plus, Visa's efforts in cross-border payments and B2B could bear fruit.Still, $1 trillion does seem like a big ask for returns that almost seem middling given the torrid performance of payment companies of late. And it shows the difficulty in Visa stock here. There's a path to a $1 trillion valuation, which is the good news. But whether 10%-plus a year is good enough for investors depends on their view of the markets and the competition.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post Visa Stock Remains a Buy, But Expectations Need to Be Lowered appeared first on InvestorPlace.
Discover announced today the elimination of deposit account fees, promising to help customers keep more of what they earn and save. Customers with a checking, savings, money market or CD account from Discover Bank now can rest easy knowing their money will stay where they put it without fees for an occasional oversight or pressing need. In addition to offering deposit accounts with no fees for monthly maintenance, checkbook orders or replacement debit cards, going forward, Discover is eliminating fees for insufficient funds, excessive withdrawals, falling below minimum balances and stop-payment requests.
Before putting in our own effort and resources into finding a good investment, we can quickly utilize hedge fund expertise to give us a quick glimpse of whether that stock could make for a good addition to our portfolios. The odds are not exactly stacked in investors' favor when it comes to beating the market, […]
Redsys, the largest payments processor in Spain, and Discover Global Network, the payments brand of Discover Financial Services, announced that they have signed an agreement that will extend merchant acceptance throughout Spain. The agreement enables Discover to work with additional acquirers in the region in an effort to increase acceptance for Discover, Diners Club International, PULSE and affiliate network cards. Redsys provides its high value services to acquirers that hold approximately 90 percent of the market share in Spain with regards to card processing and point of sale systems.
The national average for a gallon of gasoline typically rises during the summer, but this year 47 out of 50 states have prices that are lower than in 2018, according to data from GasBuddy.com, a Boston-based provider of retail fuel pricing information and data. As of June 10, the average gas price declined by 7.1 cents per gallon to $2.73 a gallon in the past week, according to GasBuddy. Patrick DeHaan, a senior petroleum analyst for GasBuddy, said gasoline prices should continue to fall at the pump, but regional variations will continue.
The big shareholder groups in Discover Financial Services (NYSE:DFS) have power over the company. Generally speaking...
The dominance of the Visa (NYSE:V) payment network continues to drive volumes and market share to the company. In this increasingly important industry, Visa stock is benefiting from the fact that its payment network processes about 61.2% of U.S. transactions.In a world that's using less cash, the credit-card industry will prosper, enabling Visa stock to remain a winner over the long-term. However, the question about V stock is not if it will go up, but if it remains a better buy than its peers. * 7 Dark Horse Stocks Winning the Race in 2019 Visa Stock Will Rise With Its IndustryIt's steady as she goes for Visa stock. Bolstered by the company's dominant market share and the continuing march towards a cashless society, V stock is continuing its slow, sustained move higher. After flirting with single-digit prices during the 2008 financial crisis, it began to move steadily higher. Today, it has risen more than 15-fold since that time. The Visa stock price has now surged to around $170.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs both myself and others have pointed out, Visa stock remains pricey. The company's growth and favorable business conditions have taken the forward price-earnings (PE) ratio of V stock above 27.4. However, the average PE ratio of V stock over the last five years is 32.9. Estimated earnings growth of 16.5% this year and its average earnings increase of 20.84% per year over the previous five years has helped to support the high multiples of V stock.Moreover, even market selloffs have resulted in relatively mild pullbacks by V stock. Between late September and the week of Christmas, Visa stock price fell by a little bit less than 20%. However, its PE ratio remained well in the 20s during that time. Also, like most stocks, it quickly recovered. For this reason, I would not expect any significant declines in Visa stock price anytime soon. Given these factors, the long-term owners of V stock should continue to hold onto their shares. Moreover, even at these levels, those buying V stock face few risks. Visa Stock Versus Its PeersThe only reason to not buy Visa stock may involve how well it compares to its key peers. Given the potential growth of cashless payments throughout the world, Mastercard (NYSE:MA), American Express (NYSE:AXP), and Discover Financial (NYSE:DFS) should also generate double-digit profit growth, despite their smaller market shares.However, after looking at card stocks' PE ratios and growth rates, it becomes clear that the market has been willing to support higher price-to-earnings-to growth (PEG) ratios for companies with higher market shares. Visa stock supports a PEG ratio of 1.9 versus only 1.75 for Mastercard. However, for this year, analysts, on average, predict Mastercard will report earnings growth of 17.4% versus only 16.5% for Visa. American Express, long a Warren Buffett favorite, trades at a PEG ratio of 1.57. AXP's expected profit growth comes in at only 10.8%. However, it has a much lower forward PE of around 13.5.Still, it is Discover Financial whose valuation stands out. Its PEG ratio comes in at only 0.7. It also supports a forward PE ratio of only about 8.2. Despite this single-digit multiple, analysts expect its profit to rise 12.4% this year.In some respects, DFS stock is cheap for a reason. It holds only a 2.2% share of card volumes, a decline from 2.3% last year. Visa remains the dominant player in this area, holding steady at 61.2%. However, in the current environment, all payment card companies will prosper.Moreover, since 2005, DFS has partnered with UnionPay, the dominant payment network in China. From a worldwide standpoint, UnionPay comes in second to only Visa on card volumes. The U.S.-China trade war may add a degree of uncertainty. However, with such an ally, DFS should continue to grow. The Bottom Line on Visa StockVisa stock will rise over the long-term, but some of its peers may fare better on a relative basis. V stock will likely remain expensive, but no major challenges have emerged to its dominance in the U.S. or to its double-digit earnings increases.When it comes to PEG ratios, Visa stock holds up well, slightly besting Mastercard and coming in only slightly higher than American Express's ratio. Still, value investors will find Discover Financial stock to be a relative bargain, as it could help a growing, China-based peer enter the U.S. market.As a result, investors who don't want to pay the high multiple carried by V stock have other choices. However,the owners of V stock will continue to benefit from Visa's U.S. dominance and the continuing move to a more cashless society.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Dark Horse Stocks Winning the Race in 2019 * 6 Chinese Stocks to Sell That Are Suffering From a Digital Ad Slowdown * 4 Technology Stocks Blasting Higher Compare Brokers The post Visa Stock May Not Be the Best Credit-Card Name appeared first on InvestorPlace.
Discover Financial (DFS) collaborates with Borica AD to facilitate the acceptance of Bcard's Global Cards outside Bulgaria on the Discover Global Network.
Discover Financial Services NYSE:DFSView full report here! Summary * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | PositiveShort interest is extremely low for DFS with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting DFS. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding DFS totaled $8.03 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Financials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Borica AD, owner of Bulgaria’s national payment scheme Bcard and Discover Financial Services, a leading direct bank and payments services company announced that they have signed a strategic agreement that will allow acceptance of Bcard’s Global Cards outside of Bulgaria on the Discover Global Network. To help provide safer international transactions, Bcard and Discover will collaborate on the integration of Discover’s EMV® contact, contactless and mobile solutions, D-PAS for international usage.
With the announcement of EMVCo’s release of the EMV® Secure Remote Commerce (SRC) Specification v1.0, Discover announces that it intends to have a functioning system in market later this year. “We are committed to supporting digital acceptance capabilities that help our partners and merchant community provide positive payment experiences to their customers,” said Ricardo Leite, vice president of global products and partnerships for Discover Global Network. “We remain actively engaged with other stakeholders to understand the market and uncertainties around SRC as we develop our own foundational components.
Discover Financial Services (DFS) today announced that R. Mark Graf, executive vice president and chief financial officer, has informed the company of his intent to retire in 2020. Graf will remain in his current role until a successor is appointed to ensure that management and the Board of Directors have the appropriate time to evaluate a full slate of candidates for the company’s next CFO. Graf will participate in the process and will remain an employee of the company until early 2020 to ensure a smooth transition for this critical role.