- Discover Financial reported April Charge-offs of 5.6% which is significantly higher compared to the previous year’s 3.56%.
- The rate of Delinquencies also spiked by close to 1%, coming in at 3.72% compared to 2.75% the previous year.
- Total card loans have seen a significant boost, amounting to $99.7 billion, marking an increase of 9.2% year-on-year.
- There is a mix of analyst sentiment around these figures, with 6 buying suggestions, 13 holding recommendations, and 0 sell instructions.
A look at Discover Financial Services Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Discover Financial Services, a credit card issuer and electronic payment services company, shows promising long-term potential based on the Smartkarma Smart Scores. With solid scores across key factors such as Value, Dividend, Growth, Resilience, and particularly Momentum, Discover Financial Services is positioned well for sustained success in the financial market.
Operating in the credit card sector and offering a range of financial services including student and personal loans, savings products, and an extensive ATM/debit network, Discover Financial Services has a balanced outlook for future growth and stability. With consistent scores in crucial areas, the company demonstrates resilience and a strong momentum that bodes well for its future performance in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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