82.33 0.00 (0.00%)
After hours: 4:50PM EDT
|Bid||82.35 x 1100|
|Ask||82.51 x 900|
|Day's Range||81.59 - 82.57|
|52 Week Range||54.36 - 82.57|
|Beta (3Y Monthly)||1.59|
|PE Ratio (TTM)||10.14|
|Earnings Date||Jul 23, 2019|
|Forward Dividend & Yield||1.76 (2.15%)|
|1y Target Est||87.86|
American Express (AXP) Q2 results benefit from higher spending, fees and loans spread across geographies and customer segments.
Discover Financial (DFS) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
Wanji Walcott, an accomplished business executive and legal expert in global payments platforms, joined Discover today as chief legal officer and general counsel and a member of the company’s Executive Committee. In her new position, Walcott will lead Discover’s corporate legal function, which plays a critical role advising on corporate and product strategies, as well as managing litigation and legislative and regulatory affairs. “Wanji’s extensive experience working with global payments organizations and navigating an evolving regulatory landscape will help guide our success and strategy for growth,” said Roger Hochschild, Discover’s CEO and president.
The investing public should get an idea about the performance of the payments industry as the earnings report on Visa (NYSE:V) comes out. The world's largest payments processor will report its third-quarter earnings on Tuesday, July 23rd after the bell. However, expectations will probably run as high as Visa stock.Source: Shutterstock As of last year, Visa controlled about 61.5% of the payment network market in the United States. Consequently, the stock has moved steadily throughout the year. However, given the valuation, the market appears to have fully priced in the market share and earnings growth of V stock. Earnings and Revenue Continue to RiseFor the quarter ending on June 30th, analysts predict Visa earnings of $1.32 per share. Should this hold, that will represent a 10% increase from the same quarter last year, when profits came in at $1.20 per share. Wall Street also projects revenues of $5.7 billion, 8.8% more than the $5.24 billion the company brought in during the third quarter of 2018.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks Top Investors Are Buying Now Visa stock has remained in a fortuitous position for some time. The demand for Visa's services continues to increase profits at double-digit rates as society becomes increasingly cashless. Visa Stock Is ExpensiveThose who hoped to buy on a dip have seen few opportunities. Visa stock fell along with the market, falling to a low of $121.60 per share on December 24th. Since then, it has moved steadily higher, climbing almost 50% since the Christmas Eve bottom. The current price of just over $180 per share comes very close to the all-time high on V stock.Unfortunately for new investors, the current price of Visa stock reflects this growth potential. The forward price-to-earnings ratio now exceeds 29. Wall Street believes that earnings will grow by 16.5% this year and 15.6% in 2020. Consequently, one can understand why V stock is not cheap.Visa stock appears expensive in more ways than one. Many at InvestorPlace seem to agree. Dana Blankenhorn says, "it's time to take profits." Luke Lango calls it a "long-term winner," but says it is "not worthy of paying $180 per share." Even V stock bull Tom Taulli admitted valuations and pressure to reduce fees could undermine the case for Visa.These double-digit growth rates have existed for some time. This has helped the company fund ten straight years of dividend increases. However, the payout now stands at $1 per year. This takes the yield to only around to only 0.55%. That does not compare well to the average dividend return for the S&P 500, which currently stands at just under 1.9%.In fairness, investors seem to get what they pay for in this industry. Mastercard (NYSE:MA) trades at a forward P/E ratio of 31, a bit above Visa's multiple. However, analysts believe MA will post higher profit growth numbers than Visa.Some investors might prefer paying about 14 times forward earnings for American Express (NYSE:AXP). However, AXP stock barely exceeds 10% on profit growth. One can say the same about Discover Financial (NYSE:DFS). DFS stock trades at 8.7x forward earnings. However, Wall Street believes profit growth will fall below 10% after this year. Should I Buy Visa Stock Before Earnings?Despite the success of the company, investors should probably avoid Visa stock going into earnings. Without question, Visa runs the largest payment network. Moreover, thanks to the growing popularity of e-commerce and cashless payment options, its massive size has not precluded double-digit profit growth.However, at more than 29 times forward earnings, the current Visa stock price fully reflects both its value and growth. It will also account for the fact that the company will more than likely beat earnings. * 10 Tech Stocks That Are Still Worth Your Time (And Money) For those determined to invest in this industry, I would choose Visa stock, but not right now. I would urge investors to wait for a correction or a bear market for the S&P 500. As long as the payments industry stays in a growth mode, only a significant decline in the overall market will offer the opportunity to buy V stock at a reasonable price.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 * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post The Bill for Visa Stock Is Too High Ahead of Earnings appeared first on InvestorPlace.
Improving loan balance, higher rates and strength in card business support Capital One's (COF) Q2 earnings. However, rise in expenses and decline in fee income are on the downside.
Discover Financial Services announced today that Jennifer L. Wong, chief operating officer at Reddit, Inc., has joined the company’s Board of Directors. Wong joined Reddit, a major user-generated content and discussion platform, in April 2018 and has deep media industry experience building successful digital advertising offerings for digital media leaders, including Time, Popsugar.com and AOL. “Jen has the experience and insight to help Discover continue to drive new digital media opportunities,” said Roger Hochschild, CEO and president of Discover.
Discover Financial Services (DFS) announced today that its Board of Directors has approved a new $2.2 billion share repurchase program and increased the quarterly common stock dividend from $0.40 to $0.44 per share. The new share repurchase program expires on September 30, 2020, and may be terminated at any time. This is a five-quarter share repurchase program and replaces the prior five-quarter, $3.0 billion program.
Discover (DFS) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Discover Financial Services NYSE:DFSView full report here! Summary * ETFs holding this stock are seeing positive inflows * 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 | PositiveETF activity is positive. Over the last month, ETFs holding DFS are favorable, with net inflows of $6.87 billion. Additionally, the rate of inflows is increasing. 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.
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.