Discover Financial stock hits all-time high at $153.48

Discover Financial Services (NYSE:DFS) stock soared to an all-time high, reaching a price level of $153.48. This milestone underscores the company's robust performance over the past year, reflecting investor confidence and a favorable market environment for the financial sector. The impressive ascent of Discover's stock is further highlighted by its remarkable 1-year change, with an 87.07% increase. This significant growth trajectory showcases the company's resilience and adaptability in a dynamic economic landscape, as it continues to innovate and expand its offerings in the competitive world of financial services.

In other recent news, Discover Financial Services reported a 41% year-over-year increase in net income, reaching $965 million in the third quarter of 2024. The company's net interest margin expanded to 11.38%, and card receivables grew by 3%. On the downside, Discover card sales saw a 3% decrease compared to the previous year, attributed to cautious consumer behavior and credit tightening actions. RBC Capital Markets adjusted its stock price target for Discover Financial Services, raising it to $161 from $148, while keeping the stock at a Sector Perform rating. This adjustment followed a recap of the company's third-quarter results, which showed solid core trends. The New York Attorney General, Letitia James, has initiated an investigation into the proposed acquisition of Discover Financial Services by Capital One, focusing on potential violations of New York's antitrust laws. The investigation aims to determine whether the merger would unlawfully stifle competition within the state. These are the recent developments surrounding Discover Financial Services.

InvestingPro Insights

Discover Financial Services' (DFS) recent stock performance aligns with several key metrics and insights from InvestingPro. The company's market cap stands at an impressive $38.53 billion, reflecting its strong position in the financial services sector. DFS's P/E ratio of 11.64 suggests that the stock may still be undervalued despite its recent surge to all-time highs.

InvestingPro Tips highlight DFS's commitment to shareholder value, noting that the company has raised its dividend for 14 consecutive years and maintained dividend payments for 18 years. This consistent dividend policy, coupled with a current dividend yield of 1.96%, underscores the company's financial stability and appeal to income-focused investors.

The stock's remarkable 1-year total return of 81.99% corroborates the article's mention of the 87.07% increase, further emphasizing DFS's exceptional performance. Additionally, DFS is trading at 93.6% of its 52-week high, indicating sustained momentum.

For investors seeking more comprehensive analysis, InvestingPro offers 5 additional tips that could provide deeper insights into DFS's financial health and future prospects.

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