Why Discover Financial Is Poised to Keep Poppin'
by
Mar 18th 2013 10:44AM
Updated Mar 18th 2013 10:46AM
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, bank holding company Discover Financial Services has earned a respected four-star ranking.
With that in mind, let's take a closer look at Discover and see what CAPS investors are saying about the stock right now.
Discover facts
|
Headquarters (founded) |
Riverwoods, Ill. (1960) |
|
Market Cap |
$22.0 billion |
|
Industry |
Consumer finance |
|
Trailing-12-Month Revenue |
$6.8 billion |
|
Management |
Chairman/CEO David Nelms |
|
Return on Equity (average, past 3 years) |
22.2% |
|
Dividend Yield |
1.3% |
|
Competitors |
American Express |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 86% of the 693 members who have rated Discover believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, stockclubpicks, succinctly summed up the Discover bull case for our community:
Margin of safety: low [P/E], slope bottoming out.
Fundamental: EPS consensus too low, EPS growth accelerating, operating leverage observed, higher growth expected, good balance sheet, good overall product, best among its peers, transforming.
Macro: industry is top 10% performance, and market is in an uptrend.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Discover may not be your top choice.
We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
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The article Why Discover Financial Is Poised to Keep Poppin' originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends American Express and Visa. The Motley Fool owns shares of MasterCard. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
