Discover (DFS) Offering Possible 36.99% Return Over the Next 29 Calendar Days

Discover's most recent trend suggests a bullish bias. One trading opportunity on Discover is a Bull Put Spread using a strike $95.00 short put and a strike $90.00 long put offers a potential 36.99% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $95.00 by expiration. The full premium credit of $1.35 would be kept by the premium seller. The risk of $3.65 would be incurred if the stock dropped below the $90.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Discover is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Discover is bullish.

The RSI indicator is at 78.16 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Discover

Discover Financial Services To Buy Back $1.1B In Stock
Wed, 20 Jan 2021 06:31:44 +0000
Discover Financial Services announced a new stock repurchase program of up to $1.1 billion. The financial services company had suspended its buyback program since March 2020 amid the coronavirus pandemic. The reinstatement of the repurchase plan came ahead of the company's 4Q quarterly results, which are scheduled to be released on Jan. 20 after the market bell. Discover Financial Services (DFS) said that the new share buyback program is valid until Dec. 31, 2021. However, it can be terminated at any time. In addition to the repurchase program, the company’s board announced a quarterly cash dividend of $0.44 per share, which will be paid on March 4 to stockholders of record as of Feb. 18. (See DFS stock analysis on TipRanks) Its quarterly dividend of $0.44 a share translates into an annual dividend of $1.76 per share, implying a dividend yield of about 1.8%. On Jan. 19, J.P. Morgan analyst Richard Shane raised the stock’s price target to $114 (15.1% upside potential) from $72 and maintained a Buy rating. In a note to investors, Shane said that he is “increasingly constructive” on consumer finance this year and expects multiple expansion for the group in 2021. Furthermore, Shane remains optimistic about the group's earnings prospects and expects the company to return a significant amount of capital to its shareholders. From the rest of the Street, the stock scores a cautiously optimistic outlook with the analyst consensus of a Moderate Buy based on 6 Buys and 9 Holds. The average analyst price target of $93.29 implies downside potential of about 5.8% to current levels. Shares have gained about 21.1% in one year. Meanwhile, TipRanks’ stock sentiment tool shows that investors currently have a Negative stance on DFS. Related News:Lennar To Buy Back $1B In Stock; Street Sees 27% UpsideAlly Financial To Buy Back $1.6B In StockBristol-Myers To Buy Back Another $2B In Stock More recent articles from Smarter Analyst: Netflix's Subscriber Growth Fuel 4Q Sales Boom; Shares Pop 12% Palantir Nabs Multi-Million-Dollar Contract With PG&E; Shares Gain 3% Facebook’s WhatsApp Asked to Withdraw Privacy Policy By India – Report Western Union Gains 3% On Walmart Deal

Discover Financial Services Board of Directors Approves Repurchase of up to $1.1 Billion of Common Stock, Declares Common and Preferred Stock Dividends
Tue, 19 Jan 2021 22:05:00 +0000
Discover Financial Services (NYSE: DFS) announced today that its Board of Directors has approved a new $1.1 billion share repurchase program, having suspended share repurchases since March 2020 in response to the economic recession. The new program expires on December 31, 2021, and can be terminated at any time.

Discover Financial Earnings Preview
Tue, 19 Jan 2021 15:32:58 +0000
On Wednesday, January 20, Discover Financial (NYSE:DFS) will release its latest earnings report. Check out Benzinga's preview to understand the implications.What Are Earnings, Net Income, And Earnings Per Share? Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.Earnings And Revenue Sell-side analysts expect Discover Financial's EPS to be near $2.36 on sales of $2.82 billion. Discover Financial reported a per-share profit of $2.25 when it published results during the same quarter last year. Sales in that period totaled $2.94 billion.What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter? Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the “consensus estimates”; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an “earnings surprise”, which can really move a stock depending on the difference between actual and estimated values.View more earnings on DFSThe analyst consensus estimate would represent a 4.89% increase in the company's EPS figure. Revenue would have fallen 4.21% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020 EPS Estimate 1.53 -0.28 0.94 2.24 EPS Actual 2.45 -1.20 -0.25 2.25 Revenue Estimate 2.67 B 2.66 B 2.89 B 2.95 B Revenue Actual 2.71 B 2.66 B 2.89 B 2.94 B Stock Performance For a full 12 months, the return has risen by 16.82%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.Do not be surprised to see the stock move on comments made during its conference call. Discover Financial is scheduled to hold the call at 08:00:00 ET and can be accessed here.See more from Benzinga * Click here for options trades from Benzinga * UnitedHealth Group Earnings Preview * Preview: Bank of New York Mellon's Earnings(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Should You Buy Discover Financial (DFS) Ahead of Earnings?
Tue, 19 Jan 2021 13:32:01 +0000
Discover Financial (DFS) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.

What's in Store for Discover Financial (DFS) Q4 Earnings?
Mon, 18 Jan 2021 14:45:02 +0000
Discover Financial (DFS) is likely to have benefited from an improved sales volume and reduced expenses in Q4, partially offset by the COVID-induced market volatility.

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