On Aug 15, 2016, shares of Discover Financial Services (DFS - Free Report) hit a 52-week high of $58.55 driven by strong second-quarter 2016 results. About 2.1 million shares exchanged hands in the last trading session and the stock finally closed at $58.21, up 0.07%.
The stock seems to have gained from robust quarterly earnings of $1.47 per share that surpassed the Zacks Consensus Estimate by 3.5%. The bottom line also improved 10.5% year over year on higher loan growth and increased net interest margin. Notably, this Zacks Rank #3 (Hold) Consumer Loans provider delivered an average positive surprise in three of the last four quarters.
Discover Financial has cemented investors’ confidence after having fulfilled the terms of the Federal Reserve's Comprehensive Capital Analysis and Review process recently. It received approval from the Fed with respect to its proposed capital actions for the four quarters ending Jun 30, 2017. This reflects the company’s adequate capital and stable capital structure even amid various stress-test scenarios. It also implies that the insurer is well positioned to undertake planned capital distributions, such as dividends and share repurchases, in line with the regulatory body’s minimum capital requirements. Pursuant to the capital plan, Discover Financial can now repurchase almost $2 billion of its stock over the next 12 months. In addition, it hiked its quarterly dividend by 7% last month.
Backed by earnings outperformance, the Zacks consensus Estimate was also moved north as most of the estimates were revised higher over the last 7 days. The same increased to $5.70 for 2016 and $6.11 for 2017.
Stocks that Warrant a Look
Some better-ranked stocks from the same industry like Credit Acceptance Corp (CACC - Free Report) , Regional Management Corp. (RM - Free Report) and EZCORP Inc. (EZPW - Free Report) . While Credit Acceptance and Regional Management sport a Zacks Rank #1 (Strong Buy), EZCORP holds a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
On Aug 15, 2016, shares of Discover Financial Services (DFS - Free Report) hit a 52-week high of $58.55 driven by strong second-quarter 2016 results. About 2.1 million shares exchanged hands in the last trading session and the stock finally closed at $58.21, up 0.07%.
The stock seems to have gained from robust quarterly earnings of $1.47 per share that surpassed the Zacks Consensus Estimate by 3.5%. The bottom line also improved 10.5% year over year on higher loan growth and increased net interest margin. Notably, this Zacks Rank #3 (Hold) Consumer Loans provider delivered an average positive surprise in three of the last four quarters.
Discover Financial has cemented investors’ confidence after having fulfilled the terms of the Federal Reserve's Comprehensive Capital Analysis and Review process recently. It received approval from the Fed with respect to its proposed capital actions for the four quarters ending Jun 30, 2017. This reflects the company’s adequate capital and stable capital structure even amid various stress-test scenarios. It also implies that the insurer is well positioned to undertake planned capital distributions, such as dividends and share repurchases, in line with the regulatory body’s minimum capital requirements. Pursuant to the capital plan, Discover Financial can now repurchase almost $2 billion of its stock over the next 12 months. In addition, it hiked its quarterly dividend by 7% last month.
Backed by earnings outperformance, the Zacks consensus Estimate was also moved north as most of the estimates were revised higher over the last 7 days. The same increased to $5.70 for 2016 and $6.11 for 2017.
Stocks that Warrant a Look
Some better-ranked stocks from the same industry like Credit Acceptance Corp (CACC - Free Report) , Regional Management Corp. (RM - Free Report) and EZCORP Inc. (EZPW - Free Report) . While Credit Acceptance and Regional Management sport a Zacks Rank #1 (Strong Buy), EZCORP holds a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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