This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Discover Financial Services - Upgrades & Downgrades

NEW YORK ( TheStreet) - With net income jumping 14.3% to $258 million from the same quarter last year, TheStreet Ratings' stock model upgraded Discover Financial Services (DFS - Get Report) to 'Buy' from 'Hold'.

TheStreet Ratings released rating changes on seven additional U.S. common stocks for June 24, 2010. Four stocks have been downgraded and four stocks have been upgraded by our stock model.

In financial results leading to the Discover upgrade, sales via Discover Card grew 6% to $22.9 billion while overdue balances fell to 4.5% in fiscal second quarter. Write offs of uncollectable loans, predicted by the company to be as high as 8.5% came in at just under 8.0%.

In a bullish signal of a healthier balance sheet, Discover's provision for future loan losses contracted by 44% and the company paid back $1.2 billion to the U.S. government's Troubled Asset Relief Program. The model sees upside potential for the share price above $18 in the next 12 months.
Stocks to Avoid
10 Dow Stocks Investors Should Avoid

Heading in the other direction with a downgrade to 'Sell' from 'Hold' is Farmer Bros Co (FARM - Get Report). This company focuses on wholesale selling of coffee and tea to restaurants and other foodservice providers during a time when household budgets are under pressure and individuals are curtailing restaurant visits.

Farmer Bros lost $2.15 per share over the last 12 months and is expected to continue to lose money in the coming quarters. The model recommends cutting your losses now as the shares have stepped lower, breaking through support levels and look to test the March 2009 low of $14.26.

-- Reported by Kevin Baker in Jupiter, Fla.

For additional Investment Research check out our Ratings Research Center.
Kevin Baker became the senior financial analyst for TheStreet Ratings upon the August 2006 acquisition of Weiss Ratings by, covering mutual funds. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DFS $46.25 0.00%
FARM $24.47 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs