Top Financial Stocks
Financial stocks are higher today with the NYSE Financial Sector
Index advancing 0.7% and the S&P Financial 100 Index also
gaining about 0.7%.
In company news, Credit card firm Discover Financial Services (
) rose Tuesday after analysts at UBS started the credit-card issuer
with a Neutral rating and a $56 price target.
The research shop said it believes the stock is fully valued at
11 times its price to earnings, adding it will likely underperform
its closest competitor Capital One Financial (
), which UBS started as a Buy on Tuesday.
"While the capital management story is powerful at DFS, its
earnings story remains more vulnerable to higher rates and
normalizing credit costs," the UBS analysts wrote in a new research
note today. "In addition, multiple expansion is unlikely as its
student lending and mortgage businesses expand, while its payment
services business slows."
DFS was up about 2% at $54.75 a share, just 6 cents off its
intra-day high. Shares have a 52-week range of $37.24 to
In other sector news,
(+) JPM, Reports Q4 earnings of $1.30 per share, beating Capital
IQ consensus by $0.06. Adjusted EPS was $1.40, up from $1.35 in the
year-ago quarter and also topping analyst estimates by $0.06 per
(-) BCH, Investment funds currently owning about 32.7% of the
Chilean bank's stock file amended prospectus to sell 6.7 mln shares
in a secondary offering. BCH will not receive any of the $335 mln
in expected gross proceeds.