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If You Invested $1000 in Discover 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Discover (DFS - Free Report) ten years ago? It may not have been easy to hold on to DFS for all that time, but if you did, how much would your investment be worth today?
Discover's Business In-Depth
With that in mind, let's take a look at Discover's main business drivers.
Founded in 1986 and based in Riverwoods, IL, Discover Financial Services is a digital banking and payment services company in the United States. The company offers credit cards, personal, student and home loans as well as deposit products. In March 2009, Discover Financial became a bank holding company under the Bank Holding Company Act of 1956 and a financial holding company under the Gramm-Leach-Bliley Act in connection with its participation in the U.S. Treasury’s Capital Purchase Program.
Discover Financial offers its products and services with acceptance in more than 185 countries and territories. The company operates through three networks:
The Discover Network – Discover Financial’s credit card payment network. The PULSE network – Discover Financial’s ATM, debit and electronic funds transfer network. Diners Club International – Discover Financial’s global payment network.
Discover Financial manages its business activities in two segments:
The Digital Banking segment (accounted for 92.5% of pre-tax income in 2021): This includes Discover card-branded credit cards issued to individuals in the Discover Network. The segment also offers personal loans, student loans, home loans and, other consumer lending and deposit products.
The Payment Services segment (7.5%): This includes PULSE, Diners Club and its network partners business (previously referred to as the third-party issuing business), which includes credit, debit and prepaid cards issued by the third parties on the Discover Network.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Discover, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in June 2012 would be worth $3,508.99, or a gain of 250.90%, as of June 8, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 216.40% and the price of gold increased 11.77% over the same time frame in comparison.
Analysts are forecasting more upside for DFS too.
Discover Financial’s integrated digital banking and payments model as well as the ongoing economic recovery is buoying its performance. Expanding global payments operations and an attractive core business poise it well for growth. Several digital transformation efforts of the company bode well. Its strong balance sheet is a major positive, highlighted by a healthy liquidity portfolio. The solid financial position enables it to deploy capital via buybacks and dividends. Shares of the company have outperformed its industry in the past year. However, its expenses are expected to increase going forward, which will restrict the margins. Also, provision for loan losses remains a concern. The overall operating efficiency of the company is declining. As such, the stock warrants a cautious stance.
Over the past four weeks, shares have rallied 7.59%, and there have been 14 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Discover 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Discover (DFS - Free Report) ten years ago? It may not have been easy to hold on to DFS for all that time, but if you did, how much would your investment be worth today?
Discover's Business In-Depth
With that in mind, let's take a look at Discover's main business drivers.
Founded in 1986 and based in Riverwoods, IL, Discover Financial Services is a digital banking and payment services company in the United States. The company offers credit cards, personal, student and home loans as well as deposit products. In March 2009, Discover Financial became a bank holding company under the Bank Holding Company Act of 1956 and a financial holding company under the Gramm-Leach-Bliley Act in connection with its participation in the U.S. Treasury’s Capital Purchase Program.
Discover Financial offers its products and services with acceptance in more than 185 countries and territories. The company operates through three networks:
The Discover Network – Discover Financial’s credit card payment network. The PULSE network – Discover Financial’s ATM, debit and electronic funds transfer network. Diners Club International – Discover Financial’s global payment network.
Discover Financial manages its business activities in two segments:
The Digital Banking segment (accounted for 92.5% of pre-tax income in 2021): This includes Discover card-branded credit cards issued to individuals in the Discover Network. The segment also offers personal loans, student loans, home loans and, other consumer lending and deposit products.
The Payment Services segment (7.5%): This includes PULSE, Diners Club and its network partners business (previously referred to as the third-party issuing business), which includes credit, debit and prepaid cards issued by the third parties on the Discover Network.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Discover, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in June 2012 would be worth $3,508.99, or a gain of 250.90%, as of June 8, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 216.40% and the price of gold increased 11.77% over the same time frame in comparison.
Analysts are forecasting more upside for DFS too.
Discover Financial’s integrated digital banking and payments model as well as the ongoing economic recovery is buoying its performance. Expanding global payments operations and an attractive core business poise it well for growth. Several digital transformation efforts of the company bode well. Its strong balance sheet is a major positive, highlighted by a healthy liquidity portfolio. The solid financial position enables it to deploy capital via buybacks and dividends. Shares of the company have outperformed its industry in the past year. However, its expenses are expected to increase going forward, which will restrict the margins. Also, provision for loan losses remains a concern. The overall operating efficiency of the company is declining. As such, the stock warrants a cautious stance.
Over the past four weeks, shares have rallied 7.59%, and there have been 14 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.