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More on Discover (DFS -3%) FQ4 earnings: Bulls on the high-flier (+61% YTD) may have a buying...

More on Discover (DFS -3%) FQ4 earnings: Bulls on the high-flier (+61% YTD) may have a buying opportunity as the earnings miss looks to be the result of an 18% increase in expenses thanks to costs associated with the Tree.com acquisition and new partnerships. Operationally: Total loans +6% Y/Y, net interest margin +34 bps, net charge-offs a historical low of 2.29%, delinquency rate of 1.86% down 53 bps. (PR)
Comments (3)
  • under 9x earnings; good growth; losses low: BUY
    20 Dec 2012, 11:15 AM Reply Like
  • agree.. looks like a chance to climb on board or add to dfs position today!... barring a market meltdown a mid 40's handle looks reasonable on this
    20 Dec 2012, 11:47 AM Reply Like
  • Yes - it is up over 60% YTD, but it is extremely cheap on all valuation metrics. Especially relative to its growth rate.
    20 Dec 2012, 01:58 PM Reply Like
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