Banking, finance, and taxes
Is Discover Financial Becoming a Bargain?
Published:
Last Updated:
The financial sector underperformed the Dow Jones Industrial Average in January. In fact, financial stocks dropped 10% in the month, compared with a drop of 6.5% in the Dow. Big bank stocks had a rough month, but credit card issuers American Express Co. (NYSE: AXP) and Discover Financial Services (NYSE: DFS) did worse. American Express dropped nearly 24% in the month and Discover dropped more than 15%.
Discover’s shares closed near $48 on the day before it reported fourth-quarter results, dropped nearly $4 the next day and posted a new 52-week low of $44.67 on Friday. The decline was all about missing profit estimates, primarily the result of slow growth in the credit card business.
The profit miss does not appear to have moved ratings on the stock, although several analysts firms have cut their price targets. Here’s a rundown:
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.