Discover Financial stock soars to all-time high of $195.36

Discover Financial Services (NYSE:DFS) stock has reached an all-time high, touching a price level of $195.36. With a market capitalization of nearly $49 billion and a P/E ratio of 13.84, the company maintains a "GREAT" financial health score according to InvestingPro analysis. This milestone underscores a period of robust growth for the company, reflecting investor confidence and a favorable market environment for the financial services sector. Over the past year, Discover Financial has seen an impressive 94.23% change in its stock price, with a notable dividend yield of 1.48% and a 14-year streak of consecutive dividend increases. According to InvestingPro's Fair Value analysis, the stock currently appears slightly undervalued, suggesting potential room for further growth. This significant increase over the year highlights the company's resilience and adaptability in a dynamic economic landscape. Discover more insights and 10+ additional ProTips with a comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Discover Financial Services has been at the center of several developments. The company has seen an upgrade from UBS, moving its stock from Neutral to Buy, and raising the price target from $150.00 to $239.00. This change reflects the company's potential growth following a recent merger, which could transform Discover Financial into a vertically integrated payments platform. Truist Securities has also initiated coverage on Discover Financial with a Buy rating, highlighting its robust return on tangible common equity growth potential.

Discover Financial has also made significant executive moves, awarding Interim CEO and President J. Michael Shepherd a one-time cash bonus of $1.5 million. Furthermore, the company expedited the payout of incentives to certain executives ahead of its planned merger with Capital One Financial Corporation (NYSE:COF). On the financial front, Discover Financial reported a 41% year-over-year increase in net income for the third quarter of 2024, reaching $965 million.

Keefe, Bruyette & Woods maintained its Outperform rating on Discover Financial, commending the company's recent restatement of certain expenses related to merchant liability as part of its ongoing process to gain regulatory approval for its proposed merger with Capital One Financial. Lastly, Discover Financial restated its previously reported financial statements for the fiscal year ended December 31, 2023, as well as for the first and second quarters of 2024. These are the recent developments in Discover Financial's business activities.

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