Discover Financial Services $ 54.13 0.99 (1.86%)
Discover Financial Services News and Headlines -
In December 2016, Mohnish Pabrai (Trades, Portfolio) outlined what he called his "Uber Cannibals" investing strategy. The strategy was built around the simple idea that businesses aggressively buying back their own stock can outperform the market in the long run.
Since first publishing this idea, the value investor has published a list of his favorite Uber Cannibal stocks every year. At the beginning of this year, he outlined five new opportunities on his blog:
- Assured Guaranty (AGO)
- Primerica (PRI)
- Globe Life (GL)
- Navient (NAVI)
- Discover Financial Services (DFS)
Assured Guaranty has been aggressively repurchasing its
The fund follows a socially responsible value-based strategy, investing in a wide range of deeply discounted, out-of-favor stocks that have long term competitive advantages and relevancy, quality management and positive scores on ESG (Environmental, Social and Corporate Governance) criteria. The fund’s portfolio managers are Jerome Dodson (Trades, Portfolio) (the Chairman of Parnassus Investments) and Billy Hwan (the Senior Research Analyst).
Based on its investing criteria, the fund cut back on several positions
The guru’s Chicago-based firm invests in undervalued small and mid-cap companies that have sustainable competitive advantages, high barriers to entry and predictable fundamentals that allow for double-digit earnings growth. Rogers emphasizes that patience, independent thinking and a long-term outlook are necessary for generating good returns.
With these criteria in mind, Ariel’s top six buys for the quarter were Envista Holdings Corp. (NVST), Vail Resorts Inc. (MTN), Charles Schwab Corp. (SCHW), Discover Financial Services (DFS), Bristol-Myers Squibb Co. (BMY) and
Discover Financial Services
The firm cut the Discover Financial Services (DFS) position by 93.26%. The portfolio was impacted by -1.30%.
The bank has a market cap of $11.99 billion and an enterprise value of $28.62 billion.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 18.96% and return on assets of 1.94% are outperforming 51% of companies in the credit services industry. Its financial strength is rated 3 out
Discover Financial Services (DFS) (DFS- $35.67 - NYSE) is the financial services company that issues the Discover card. It also makes student loans and personal loans. Discover’s shares fell sharply during the quarter as investors attempted to assess the impact of rising unemployment due to coronavirus-related business shutdowns on the company’s credit card loan portfolio.
From Keeley Asset Management's Mid Cap Dividend Valud Fund's first-quarter 2020 shareholder commentary.
To Our Shareholders,
For the quarter ended March 31, 2020, the KEELEY Mid Cap Dividend Value Fund’s net asset value (“NAV”) per Class A share fell -34.10% versus an -31.71% decline in the Russell Mid Cap Value Index.
The year started out promisingly with the S&P 500 making new all-time highs in the first quarter. That changed quickly. In fact, the S&P went from a new all-time high to a bear market (down 20%) in a record sixteen days. This is faster than the thirty days it took to enter a bear market in 1929 and the thirty-eight days
Companies that are growing their earnings are often good investments because they can return a solid profit to investors.
According to GuruFocus' discounted cash flow calculator as of March 4, the following undervalued companies have a high margin of safety and have grown their earnings per share over a five-year period.
Alibaba Group Holding Ltd.'s (BABA) earnings per share have grown 25.3% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 22% margin of safety at $212 per share. The price-earnings ratio is
“There is an enormous difference between perfect competition and monopoly, and most businesses are much closer to one extreme than we commonly realize.”
- Peter Thiel
Legendary investor Peter Thiel thinks that a business is either facing a perfect competition or has a monopoly position in the market. Assuming this is true, investors should look only for the latter kind of company to invest in, as no company makes a durable economic profit without a lasting competitive advantage.
However, it is understandable that the management from either side has an interest in “confusing” the public; businesses without
New York-based MasterCard (MA) and California-based Visa (V) are the two leading players of the four-company oligopoly of payment processing outside of China. They are also the only two “pure plays” in the space, unlike American Express (AXP) and Discover (DFS), both of which also issue their own cards to end-users.
Unarguably, both names symbolize quality and growth and, in our view, belong to the scarce species of “wonderful businesses.” As you can see below, MasterCard and Visa consistently generated high free cash return on assets while increasing the top-line year-over-year by between 2% and 21% every year for the
According to GuruFocus insider data, the recent Chief Financial Officer buys were from the following companies: CenterState Bank Corp (CSFL), Unifi Inc. (UFI) and Discover Financial Services (DFS).
CFO William E. Matthews bought 5,000 shares for $22.89 per share on Jan. 31. Since then, the stock price has increased by 1.62%.
CenterState Bank Corp has a market cap of $2.91 billion and its shares were traded around $23.26 on Feb. 4. The company has a price-earnings ratio of 12.44 and a price-sales ratio of 3.85. The trailing 12-month dividend yield of CenterState Bank Corp stocks is 1.86%, while
According to GuruFocus Insider Data, these are the largest CEO buys during the past week.
Anthem Inc. (ANTM) President and CEO Gail Boudreaux bought 7,600 shares on Jan. 30 at a price of $263.70. The price of the stock has increased by 0.6% since.
With over 40 million members, Anthem is one of the largest managed-care organizations in the United States. The firm provides individual, group and government-sponsored health insurance. The firm operates under the Blue Cross/Blue Shield brand in 14 states.
The company has a market cap of $67.27 billion. Its
The largest insider buys this week were for Delta Air Lines Inc. (DAL), Huntington Bancshares Inc. (HBAN), Freeport-McMoRan Inc. (FCX) and Discover Financial Services (DFS).
Delta Air Lines director bought 1,025 shares
Director Michael P. Huerta bought 1,025 shares on Jan. 28 for an average price of $57.38. The stock has declined 2.86% since then.
Delta is a major American airline, operating over 5,400 flights daily. The company serves an extensive domestic and international network, including 319 destinations in 54 countries on six continents. It has a market capitalization of $36.05 billion; as of Jan. 31, it traded at $55.74.
"When you have to make a choice and don’t make it, that is in itself a choice."
- William James
One evening a Cherokee elder told his grandson about a battle that goes on inside people. He said, “My son, the battle is between two “wolves” inside us all. One is Evil. It is anger, envy, jealousy, sorrow, regret, greed, arrogance, self-pity, guilt, resentment, inferiority, lies, false pride, superiority, and ego. The other is Good. It is joy, peace, love, hope, serenity, humility, kindness, benevolence, empathy, generosity, truth, compassion, and faith.” The grandson thought about
According to the GuruFocus All-in-One Screener, a Premium feature, as of Jan. 10, the following Guru-held companies are trading at a discount and have positive three- to five-year future earnings estimates.
Shares of Cummins Inc. (CMI) were trading around $173.52 per share on Jan.10.
The company, which manufactures diesel and natural gas engines, has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have risen 3.90% over the last five years.
Analysts project a three-year to five-year earnings growth rate of 4.65%. The return on
As of Tuesday, the GuruFocus All-in-One Screener found the following stocks that have low price-earnings ratios and have been bought by gurus. While some of them are great investments, others need to be checked again, according to the discounted cash flow calculator.
Discover Financial Services
With a market cap of $25.12 billion, Discover Financial Services (DFS) is trading with a price-earnings ratio of 9.23. According to the DCF calculator, the stock has a fair value of $168.17 while trading at about $80. The price has risen 6% over the last 12 months and is now
Screening for securities that are more than doubling 20-year high-quality corporate bonds' earnings yields raises the possibility of gaining impressive margins.
These bonds represent corporate loans issued by companies that are triple-A, double-A and single-A rated.
The Federal Reserve Bank of St. Louis indicated that the monthly average spot rate of the 20-year bond is 3.97%.
As a result, the following stocks have an earnings yield of more than 7.94% or a price-earnings ratio of less than 12.59 as of July 26.
Moreover, the Peter Lynch chart suggests that these stocks are cheap.
Discover Financial Services (DFS) traded
According to the GuruFocus All-In-One Screener, the following companies have grown their book value per share over the past decade.
Book value per share is calculated as total equity minus preferred stock, divided by shares outstanding. Theoretically, it is what shareholders will receive if a company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Since the book value per share may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.
Companies that are growing their earnings are often good investments because they can return a solid profit to investors. According to the discounted cash flow calculator, the following undervalued companies have grown their earnings per share over a five-year period.
Fiat Chrysler Automobiles NV's (FCAU) earnings per share have grown 53% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 39% margin of safety at $14 per share. The price-earnings ratio is 6.54. The share price has been as high as $20.43 and as low as
The CVS Health Corp. (CVS) position was reduced by 87.04%. The trade had an impact of -1.74% on the portfolio.
The drugstore chain has a market cap of $74.44 billion and an enterprise value of $141.60 billion.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of -0.38% and the return on assets of -0.10% are outperforming 62% of companies in the
There are a number of great companies in the market today. By using the ModernGraham valuation model, I've selected the 10 lowest PEmg (price-normalized earnings) companies of those reviewed. Each company has been determined to be undervalued or fairly valued and suitable for the Defensive Investor according to the ModernGraham approach.
Defensive Investors are defined as investors who need to select only the companies that present the least amount of risk. Enterprising Investors, on the other hand, are able to select companies that present a moderate (though still low) amount of risk.
Macy's Inc. (M)
Macy's qualifies for both