Why Discover Financial Is Poised to Keep Poppin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, bank holding company Discover Financial Services (NYSE: DFS  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Discover and see what CAPS investors are saying about the stock right now.

Discover facts

Headquarters (founded)

Riverwoods, Ill. (1986)

Market Cap

$23.5 billion

Industry

Consumer finance

Trailing-12-Month Revenue

$6.9 billion

Management

Chairman / CEO David Nelms
President / COO Roger Hochschild

Return on Common Equity (average, past 3 years)

25.2%

Dividend Yield

1.7%

Competitors

American Express 
MasterCard
Visa

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 86% of the 727 members who have rated Discover believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, eajohnson1, succinctly summed up the bull case for our community:

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.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Discover may not be your top choice.

Many investors are scared about investing in big banking stocks after the crash, but the sector has one notable stand out. In a sea of mismanaged and dangerous peers, it stands out as The Only Big Bank Built To Last. You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.


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