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Discover (DFS, $123.86) beats Q2 earnings estimates; announces dividend hike
Discover Financial Services shares reported earnings for the second quarter.
The company posted net income of $5.55 a share, in the second quarter, surpassing the $4.11 a share expected by analysts polled by FactSet. The figure also reflects a bounce-back from a pandemic-induced loss of -$1.20 a share in the year-ago quarter.
Net interest income climbed +5% year-over-year to $2.3 billion. Revenue, net of interest expense, came in at $3.58 billion, beating analysts’ expectation of $2.9 billion.
Discover’s Board of Directors approved share repurchases of up to $2.4 Billion of common stock, and a +14% increase in the quarterly common stock dividend to $0.50 Per Share.
DFS in downward trend: 10-day moving average broke below 50-day moving average on May 12, 2022
The 10-day Moving Average for DFS crossed bearishly below the 50-day moving average on May 12, 2022. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 59%.
Current price $103.06 is below $112.64 the lowest support line found by A.I. Throughout the month of 04/13/22 - 05/16/22, the price experienced a -9% Downtrend. During the week of 05/09/22 - 05/16/22, the stock fell -4%.
The Momentum Indicator moved below the 0 level on May 05, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on DFS as a result. In 44 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 54%.
The Moving Average Convergence Divergence Histogram (MACD) for DFS turned negative on May 09, 2022. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 25 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 52%.
DFS moved below its 50-day Moving Average on May 06, 2022 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DFS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 52%.
DFS broke above its upper Bollinger Band on April 18, 2022. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Stochastic Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +6.44% 3-day Advance, the price is estimated to grow further. Considering data from situations where DFS advanced for three days, in 218 of 351 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 47%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.41.
The Tickeron PE Growth Rating for this company is 80 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 60 (best 1 - 100 worst), indicating steady price growth. DFS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 41 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock slightly better than average.
The Tickeron Valuation Rating of 17 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.382) is normal, around the industry mean (4.384). P/E Ratio (6.165) is within average values for comparable stocks, (80.319). DFS's Projected Growth (PEG Ratio) (0.386) is slightly lower than the industry average of (1.301). Dividend Yield (0.019) settles around the average of (0.039) among similar stocks. P/S Ratio (2.534) is also within normal values, averaging (24.819).
The Tickeron SMR rating for this company is 3 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
A leasing company (e.g. United Rentals, Inc. ) is typically the legal owner of the asset for the duration of the lease, while the lessee has operating control over the asset while also having some share of the economic risks and returns from the change in the valuation of the underlying asset. Per capita disposable income and corporate earnings or cash flow could be some of the critical metrics for this business – the higher the values of these metrics, the potentially greater ability of consumers/businesses to afford apartments/office spaces for rent. Other finance companies include credit/debit card payment processing companies (e.g. Visa Inc. and Mastercard), private label credit cards providers (e.g. Synchrony Financial) and automobile finance companies (e.g. Credit Acceptance Corporation).
The average market capitalization across the Finance/Rental/Leasing Industry is 7.7B. The market cap for tickers in the group ranges from 10.3K to 428.7B. V holds the highest valuation in this group at 428.7B. The lowest valued company is CAFI at 10.3K.
The average weekly price growth across all stocks in the Finance/Rental/Leasing Industry was -2.14%. For the same Industry, the average monthly price growth was -7.75%, and the average quarterly price growth was -13.29%. SOHI experienced the highest price growth at 61.26%, while WINSF experienced the biggest fall at -70%.
- 5/10/22 5:36 AM: Discover Financial Services (DFS, $107.27) was a top loser this week, declining -5.31%. Expect a Downtrend reversal
- 5/4/22 8:26 AM: Discover Financial Services (DFS, $115.56) was a top weekly gainer, with a +5.64% jump
- 4/27/22 5:34 AM: Discover Financial Services (DFS, $109.39) was a top loser this week, declining -7.88%
The average weekly volume growth across all stocks in the Finance/Rental/Leasing Industry was 29.18%. For the same stocks of the Industry, the average monthly volume growth was 47.26% and the average quarterly volume growth was 48.93%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the MA200MA50 Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 36%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.17.
70 stocks in the group of tickers exhibit a similar negative trend based on the Aroon indicator with an average likelihood of 72%.
The most notable companies in this group are VISA (NYSE:V), Mastercard (NYSE:MA), American Express Company (NYSE:AXP), General Electric Company (NYSE:GE), Discover Financial Services (NYSE:DFS), United Rentals (NYSE:URI), Synchrony Financial (NYSE:SYF), SLM Corp (NASDAQ:SLM), LexinFintech Holdings Ltd (NASDAQ:LX).
The average market capitalization across the group is 10.2B. The market cap for tickers in the group ranges from 0 to 428.7B. V holds the highest valuation in this group at 428.7B. The lowest valued company is SLMBP at 0.
- 5/5/22 4:57 AM: VISA (V, $214.52), market cap jumped by $26.9B
- 4/28/22 6:01 AM: VISA (V, $214.11), market cap jumped by $41.8B
- 3/25/22 6:10 AM: VISA (V, $217.31), market cap jumped by $20.2B
The average weekly price growth across all stocks in the group was 0.02%. For the same group, the average monthly price growth was -8.73%, and the average quarterly price growth was -24.22%. SRCO experienced the highest price growth at 70.32%, while URAL experienced the biggest fall at -75%.
- 5/14/22 4:24 AM: Mr Cooper Group (COOP, $42.79) was a top loser this week, declining -5.25%. Expect a Downtrend reversal
- 5/14/22 4:23 AM: AdaptHealth (AHCO, $16.25) was a top weekly gainer, with a +25.39% jump
- 5/14/22 4:22 AM: Petrogress (PGAS, $0.04) was a top weekly gainer, with a +23.21% jump
The average weekly volume growth across all stocks in the group was 65.17%. For the same stocks of the group, the average monthly volume growth was 85.96% and the average quarterly volume growth was 33.77%
- 5/14/22 4:17 AM: The volume for loanDepot stock increased for four consecutive days, resulting in a record-breaking daily growth of 190% of the 65-Day Volume Moving Average
- 5/14/22 4:16 AM: The volume for Mogo stock increased for two consecutive days, resulting in a record-breaking daily growth of 306% of the 65-Day Volume Moving Average
- 5/13/22 4:50 AM: The volume for loanDepot stock increased for three consecutive days, resulting in a record-breaking daily growth of 208% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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