- Shares of Comerica (CMA) of Dallas closed at $43.30 Monday and traded for 14.7 times the consensus 2014 EPS estimate of $2.95. Comerica's return on average equity (ROE) has ranged between 6.64% and 8.49% over the past four quarters, according to Thomson Reuters Bank Insight.
- First Niagara Financial Group (FNFG) of Buffalo closed at $11.06 Monday and traded for 13.5 times the consensus 2014 EPS estimate of 82 cents. The company's ROE has ranged between 4.79% and 6.42% over the past four quarters.
- Shares of Zions Bancorporation of Salt Lake City closed at $28.40 Monday and traded for 15.4 times the consensus 2014 EPS estimate of $1.84. The company's ROE has ranged between 3.53% and 7.12% over the past four quarters.
NEW YORK ( TheStreet) -- Some investors have been griping about the market valuation of Discover Financial Services ( DFS), despite the stock's stellar performance, according to KBW analyst Sanjay Sakhrani. It's not difficult to understand why. Discover's shares closed at $52.42 Monday and traded for 10.3 times the consensus 2014 earnings estimate of $5.07 a share, among analysts polled by Thomson Reuters. That's a rather modest forward price-to-earnings ratio, considering how profitable Discover has been. Many regional banks trade at considerably higher valuations despite being much less profitable than Discover. Here are a few examples:
Visa and MasterCard ) and 2) its willingness to provide white label services (i.e., as it is currently doing for PayPal)." PayPal is eBay's lucrative payments network, which partnered with Discover in April 2012 to offer merchants the ability to accept PayPal payments.