Why Discover Financial Is Poised to Keep Popping
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, bank holding company Discover Financial has earned a respected four-star ranking.
With that in mind, let's take a closer look at Discover and see what CAPS investors are saying about the stock right now.
Discover facts
Headquarters (founded) | Riverwoods, Ill. (1986) |
Market Cap | $24.1 billion |
Industry | Consumer finance |
Trailing-12-Month Revenue | $6.8 billion |
Management | Chairman / CEO David Nelms |
Return on Equity (average, past 3 years) | 22.2% |
Dividend Yield | 1.6% |
Competitors | Visa |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 87% of the 742 members who have rated Discover believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, Googlespooch, succinctly summed up the bull case for our community:
Discover has been in the business of credit cards for around 25 years now. Despite being one of the smaller competitors (in comparison to Visa and MasterCard), Discover seems to have a lot going for it. They have fantastic customer loyalty and their new Discover IT card is, to say the least, a great deal! Discover seems well run and set to outperform.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Discover may not be your top choice.
After all, many investors are terrified about investing in financial stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.
The article Why Discover Financial Is Poised to Keep Popping originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends MasterCard and Visa. The Motley Fool owns shares of MasterCard and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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