Discover Financial Services (NYSE:DFS)

Company has performed as well as V and MA but has not been shown the same love from the market. DFS has expanded its business model and developed its technology which will secure additional business and maintain the company's revenue growth.

cheap stock with competitive dividend

Lots of potential to grow over the next few years and fantastic customer service

For a long time I associated Discover with bad stereotypes from the 80’s and 90’s. Now that I own a card – and the company has spun off – a whole other story emerges. In my area they are landing accounts with merchants who have long resisted credit cards. Their customer service, website, etc. is great. Growth potential from revenue increase, market share increase, upselling to loyal customers, new products and innovations. Probably not all of those will pan out, but with a basic valuation that is low…

With green thumbs on AXP, V, and MA I might as well add this one as well. Payments industry is growing as the world is becoming more of a cashless society. Still there is huge room and even continents of growth opportunities still out there for companies!

DFS continues to find new avenues of growth and despite its run, is still undervalued.

s&p 5 star

Chart Pattern: weekly chart breakout

Long term technical: top 30%, positive alpha, low beta, high sharpe

Margin of safety: low pe, slope bottoming out

Fundamental: EPS consensus too low, EPS growth accelerating, operating leverage observed, higher growth expected, good balance sheet, good overall product, best among its peers, transforming

Macro: industry is top 10% performance, and market is in an uptrend

Credit card companies will rule for the next few years until the next instant payment strategy emerges.

like how it actually lends cash and trades at such a low valuation sub 10x pe.

Narrowing cost of financing, death of cash and strong growth in Asia.

People are seeing those first 2013 paychecks and finally realizing that taxes DID go up. Credit will start to get extended, and companies like DFS will benefit.

if leadership can maintain a strong desire to win we will be rewarded

Buying on weakness.

A low P/E ratio with a strong history of growth and positive future outlook as credit card payments increase, as well as expand into mobile services such as NFC. A big name that is not going anywhere bad anytime soon. A small dividend doesn't hurt, and compared to its possibly overvalued peers, very fair price to get in at.

paypal

Very large, hairy, cajones. Dividend sucks but maybe they will learn.

My conservative 5-year Graham valuation projects a 203% growth.

It is a reliable and growing stock..and has been doing great for the past 2 years.