Discovery Financial Services
This stock resides in another sector that has been red-hot but has solid upside potential from current levels. Discover Financial Services (NYSE: DFS) operates as a digital banking and payment services company in the United States. It operates in two segments.
The Direct Banking segment offers Discover-branded credit cards to individuals. Other consumer products and services include private student loans, personal loans, home equity loans and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts, IRA certificates of deposit and sweep accounts.
The Payment Services segment operates the PULSE network, an automated teller machine, debit and electronic funds transfer network. Its Diners Club International is a payments network that issues Diners Club branded charge cards and provides card acceptance services. The Discover Network processes transactions for Discover-branded credit and debit cards, as well as provides payment transaction processing and settlement services.
Investors receive a 1.54% dividend. The Jefferies price target is $115 and could be going higher soon. The consensus target is higher and $117.18, and Friday’s closing share price was $113.97.
The banking industry continues to remain hot, and this is a solid choice for investors looking at financials. KeyCorp (NYSE: KEY) operates as the bank holding company for KeyBank National Association, which provides deposit, lending, cash management and investment services to individuals, small and medium-sized businesses.
The company also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets banner.
KeyCorp stock investors receive a 3.25% dividend. The $24 Jefferies target price compares with the $23.10 consensus figure. The shares closed on Friday at $23.12 apiece.