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 upward trend: price may ascend as a result of having broken its lower Bollinger Band on December 18, 2024
DFS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 28 cases where DFS's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DFS advanced for three days, in of 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for DFS moved out of overbought territory on December 02, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 71 cases where DFS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on December 26, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on DFS as a result. In of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DFS turned negative on December 02, 2024. 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 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for DFS entered a downward trend on December 30, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (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.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is (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 Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (2.354) is normal, around the industry mean (4.895). P/E Ratio (11.490) is within average values for comparable stocks, (55.228). Projected Growth (PEG Ratio) (3.168) is also within normal values, averaging (3.039). Dividend Yield (0.022) settles around the average of (0.040) among similar stocks. P/S Ratio (2.072) is also within normal values, averaging (3.431).
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General Information
a regional bank
Industry FinanceRentalLeasing