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1. Discover Fin Sv (DFS) Price: $26.08
Industry: Finance
Chaikin Power Gauge Report | Generated: Wed Jul 27 11:30 EDT 2011
DFS
Discover Fin Sv $26.08 Power Gauge Rating
DFS - Neutral
TM
The Chaikin Power Gauge Rating for DFS is neutral with very attractive
financial metrics, very strong earnings performance, very bullish price/volume
activity and very positive expert opinions.
Financial Metrics
DFS's financial metrics are excellent due to a high return on equity.
Earnings Performance
DFS's financial metrics are excellent due to a high long term debt to equity
Price/Volume Activity
ratio.
Despite these bullish factors, Chaikin Power Tools has identified a negative
Expert Opinions
trend resulting in a neutral rating.
News Sentiment Rating
Neutral
DFS Discover Fin .. July 20, 2011 TM
Chaikin Sentiment Gauge for DFS is neutral. Stories concerning DFS have a
balanced or neutral sentiment.
News Sentiment :Neutral
Power Trend - 5 Year Chart
The Power Gauge distills a 20 factor model into a concise picture of a stock's potential. High Potential Neutral Low Potential
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2. Financials & Earnings
Financial Metrics
Financial Metrics Rating
LT Debt/Equity Ratio
Very Bullish
Price to Book Value DFS's financial metrics are excellent. The company yields a high return on
shareholder's equity and generates high free cash flow relative to market
Return on Equity
capitalization.
The rank is based on a high long term debt to equity ratio, high return on equity
Price to Sales Ratio and relatively high cash flow.
Business Value
Assets and Liabilities Valuation Returns
Ratio TTM Ratio TTM Ratio TTM
Current Ratio 1.44 Price/Book 2.20 Return on Invest 6.7%
LT Debt/Equity 2.74 Price/Sales 1.73 Return on Equity 24.7%
Earnings Performance
Earnings Performance Rating
Earnings Growth
Very Bullish
Earnings Surprise DFS's earnings performance has been very strong. The company has a history of
strong earnings growth and has outperformed analysts' earnings estimates.
Earnings Trend The rank is based on high earnings growth over the past 3-5 years, better than
expected earnings in recent quarters, an upward trend in earnings this year, a
Projected P/E Ratio relatively low projected P/E ratio and inconsistent earnings over the past 5 years.
Earnings Consistency
5 Year Revenue and Earnings Growth EPS Estimates
11/06 11/07 11/08 11/09 11/10 Factor Actual EPS Prev EST EPS Current Change
Revenue(M) 5,997.46 5,051.87 6,957.02 10,378.75 8,241.22 Quarterly EPS $0.47 $0.80 +0.33
Rev % Growth 17.32% -15.77% 37.71% 49.18% -20.60% Yearly EPS $1.23 $3.49 +2.26
EPS $2.26 $1.18 $1.93 $2.42 $1.23 Factor Actual EPS Growth Est EPS Growth Change
EPS % Growth 86.78% -47.79% 63.56% 25.39% -49.17% 3-5 year EPS 13.57% 12.33% -1.24
EPS Surprise EPS Quarterly Results
Estimate Actual Difference % Difference FY Qtr 1 Qtr 2 Qtr 3 Qtr 4 Total
Latest Qtr $0.72 $1.09 $0.37 51.39 11/09 $0.25 $0.43 $1.09 $0.63 $2.40
1 Qtr Ago $0.53 $0.84 $0.31 58.49 11/10 $-0.22 $0.34 $0.47 $0.64 $1.23
2 Qtr Ago $0.42 $0.64 $0.22 52.38 11/11 $0.84 $1.09 - - -
3 Qtr Ago $0.35 $0.47 $0.12 34.29 Fiscal Year End Month is November.
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3. Price Trend & Expert Opinions
Price/Volume Activity
Price/Volume Activity Rating
Relative Strength vs Market Very Bullish
Chaikin Money Flow
Price and volume activity for DFS is very bullish. DFS has outperformed the S&P
500 over 26 weeks and is experiencing sustained buying.
Price Trend
The rank for DFS is based on its price strength versus the market, positive
Price Trend ROC
Chaikin money flow, a positive Chaikin price trend, a negative Chaikin price trend
ROC and an increasing volume trend.
Volume Trend
Relative Strength vs S&P500 Index Chaikin Money Flow
Chart shows whether DFS is performing better or worse than the market. Chaikin Money Flow analyzes supply and demand for a company's stock.
Price Activity Price Activity Volume Activity
Factor Value Factor Value Factor Value
52 Week High 27.52 % Change Price - 4 Weeks 5.20% Average Volume 20 Days 7,344,930
52 Week Low 13.91 % Change Price - 24 Weeks 26.54% Average Volume 90 Days 6,437,471
% Change YTD Rel S&P 500 31.05% % Change Price - 4 Wks Rel to S&P 0.19% Chaikin Money Flow Persistency 80%
% Change Price - 24 Wks Rel to S&P 24.54%
Expert Opinions
Expert Opinions
Earnings Estimate Revisions Very Bullish
Short Interest Expert opinions about DFS are very positive. Analysts are raising their EPS
estimates for DFS and shorting of DFS is low.
Insider Activity
The rank for DFS is based on analysts revising earnings estimates upward, a low
short interest ratio, insiders not purchasing significant amounts of stock and
Analyst Opinions
optimistic analyst opinions.
Relative Strength vs Industry
Earnings Estimate Revisions Analyst Recommendations EPS Estimates Revision Summary
Current 7 Days Ago % Change Factor Value Last Week Last 4 Weeks
Current Qtr 0.82 0.80 +2.50% Mean this Week Buy Up Down Up Down
Next Qtr 0.78 0.77 +1.30% Mean Last Week Buy Curr Qtr 0 0 2 0
Curr Yr 0 0 4 0
Current 30 Days Ago % Change Change 0.00
Next Qtr 0 0 2 0
Current FY 3.55 3.33 0.22 Mean 5 Weeks Ago Buy
Next Yr 0 0 4 0
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4. The Company & Its Competitors
DFS's Competitors in Finance News Headlines for DFS
Company Power Historic EPS Projected EPS Profit Margin PEG PE Revenue(M) Business events scheduled for Thursday - Jun
Gauge growth growth 22, 2011
DFS 13.57% 12.33% 22.75% 0.61 8.58 8,241 Discover Financial to buy back $1 billion in stock
EZPW 28.83% 15.00% 13.64% 0.86 13.59 733
- Jun 15, 2011
Discover Financial Services Announces $1
AEA 4.31% 15.00% 6.71% 0.62 10.43 600
Billion Share Repurchase Program - Jun 15,
CACC 17.31% - 39.20% - 13.56 442 2011
Tree.com sells mortgage unit to Discover
COF 10.77% 9.80% 19.17% 0.69 6.43 19,067
Financial - May 12, 2011
NNI 1.51% 17.00% 17.91% 0.28 3.94 1,062
Discover to Acquire Mortgage Origination
WRLD 15.15% - 18.57% - 12.15 491
Business from Tree.com for $55.9 Million - May
12, 2011
SLM 42.41% 10.00% 1.88% 0.89 7.80 6,776
Company Details Company Profile
DISCOVER FIN SV Discover Financial Services operates the Discover Card with more than fifty million
2500 LAKE COOK ROAD cardmembers, the Discover Network with millions of merchant and cash access locations,
RIVERWOODS, IL 60015 and the Goldfish credit card business in the United Kingdom. Discover Financial Services
USA also operates the pulse ATM/debit network, which serves more than four thousand four
Phone: 224-405-0900 hundred financial institutions and includes nearly two lakhs sixty thousand ATMs, as well
Fax: 224-405-4993 as POS terminals, nationwide.
Website:
http://www.discoverfinancial.com
Full Time Employees: 10,300
Sector: Finance
Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated
by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the
strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe.
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LM 2.3 DS 3.0 LS 2.1
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