On June 27, 2013, Zacks Investment Research upgraded
Discover Financial Services
) to a Zacks Rank #2 (Buy).
Why the Upgrade?
Discover Financial has been witnessing rising earnings
estimates on the back of the recent initiatives to expand
clientele, including interest rate cuts and strategic alliances.
As a result, the Zacks Consensus Estimate for this direct banking
and payment services company's 2013 earnings per share (EPS)
stands at $4.78, up 7.25% over 2012.
The most recent among these measures was a cut down in the
interest rates on Discover Financial's fixed rate student loans
for undergraduate, graduate and post-graduate students. The
company is now offering fixed rate loans with an interest rate
beginning at 5.49%. The low rates should help attract more
students toward Discover Financial's student loans, thus boosting
the income of the Direct Banking segment of Discover
Additionally, Discover Financial inked agreements with
Barclaycard Global Payment Acceptance, Japan Credit Bureau,
Cadence Bank and Nigeria-based Interswitch Limited this year to
boost card acceptances and transaction volume.
On Apr 23, 2013, Discover Financial reported first-quarter
2013 EPS of $1.33, surpassing the Zacks Consensus Estimate by
18.75% and year-ago earnings by 9.9%. The positive momentum is
expected to continue in the second quarter as well. As a result,
the Zacks Consensus Estimate for the second quarter of 2013 is
$1.15, up 14.69% over the year-ago quarter.
Other Stocks to Consider
Other companies worth considering in the financial sector are
Regional Management Corp.
) - Zacks Rank #1 (Strong Buy),
World Acceptance Corp.
) - Zacks Rank #2 (Buy) and
) - Zacks Rank #1 (Strong Buy).
DISCOVER FIN SV (DFS): Free Stock Analysis
REGIONAL MANAGE (RM): Free Stock Analysis
VANTIV INC-A (VNTV): Free Stock Analysis
WORLD ACCEPTANC (WRLD): Free Stock Analysis
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