Four analysts have increased their EPS forecasts for this financial firm in the past 30 days. The shares have a current annual dividend yield of 2.24%, paid quarterly.
Discover Financial Services (DFS)
From AlphaProfit Sector Investors’ Newsletter
Discover Financial Services (DFS) is growing loans while maintaining credit quality. Its total loans grew 6% year-over-year in the second quarter from a 7% growth in credit card loans. The provision for loan losses matched the growth in loans. These factors along with share purchases boosted EPS 21% year -over-year. Discover raised its quarterly dividend by 10% and plans to buy back $1.63 billion of shares next year. Its shares appeal to growth and income investors. They trade at 8.4X-forward EPS versus prospects for 7% EPS growth in the next 12 months. (Next earnings: Oct. 22)
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com, 281-565-6963, October 2019