Discover Financial Services Stock Buy Recommendation Reiterated (DFS)
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- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 33.73% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DFS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- DISCOVER FINANCIAL SVCS INC has improved earnings per share by 12.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DISCOVER FINANCIAL SVCS INC increased its bottom line by earning $4.46 versus $4.06 in the prior year. This year, the market expects an improvement in earnings ($4.55 versus $4.46).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Consumer Finance industry average. The net income increased by 7.4% when compared to the same quarter one year prior, going from $512.58 million to $550.72 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 7.2%. Since the same quarter one year prior, revenues slightly increased by 6.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $881.80 million or 10.55% when compared to the same quarter last year. In addition, DISCOVER FINANCIAL SVCS INC has also vastly surpassed the industry average cash flow growth rate of -162.81%.
--Written by a member of TheStreet Ratings Staff. It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE
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