- Discover Financial’s charge-offs were reported at 4.31% in October.
- The rate of delinquencies for the same period was 3.87%.
- Total card loans for Discover Financial reached $100.7 billion.
- Analyst ratings include 6 buys, 12 holds, and 1 sell recommendation.
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Discover Financial Services on Smartkarma
Discover Financial Services is attracting positive attention from analysts on Smartkarma, a platform where top independent analysts share their insights. According to Value Investors Club, Discover Financial Services (DFS) is viewed favorably, with a bullish sentiment. The analysts highlight DFS as a successful business with strong financial performance, emphasizing its ownership of the Discover Network and Pulse debit card scheme in the US. They commend DFS for focusing on prime customers and maintaining a high-quality deposit base, which has helped the company remain profitable even in challenging economic conditions. Additionally, there is speculation about a potential merger with Capital One Financial Corp., which could have significant implications for the financial services industry.
A look at Discover Financial Services Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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, appears to have a balanced long-term outlook based on the Smartkarma Smart Scores analysis. The company scored an overall rating of 3 for Value, Dividend, and Growth, indicating a moderate performance in these areas. However, it shines in Resilience with a score of 4, highlighting the company’s ability to weather economic challenges. Furthermore, Discover Financial Services shows strong Momentum with a score of 5, suggesting positive market sentiment and potential growth opportunities.
Overall, Discover Financial Services seems to be well-positioned for the future, with a solid foundation in terms of resilience and momentum. While the company may not be leading in value, dividend, or growth factors, its ability to withstand uncertainties and capitalize on market momentum bodes well for its long-term success in the credit card and electronic payment services 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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