Traders Could Ring Up Big Profits With This Credit Card Stock

by Sam Collins | June 5, 2013 1:56 am

Traders Could Ring Up Big Profits With This Credit Card Stock

Discover Financial Services (DFS[1]) — This direct banking and financial services company operates as a bank and a credit card payments network. Credit quality is the best it’s been in 14 years due to higher credit standards and an improved economy.

Analysts’ consensus earnings estimates are $4.73 per share for 2013 and $4.83 for 2014. DFS has an annualized dividend yield of 1.7%.

The stock broke from a 12-month consolidation in March, jumping from $40 to over $48. It is in a bull channel with support at its intermediate trendline (red dashed line) at $46 and 50-day moving average (blue line) at $45.10. MACD is arching up and bullish.

Buy DFS for a continuation of its bull channel and a near-term trading objective of $55.

06 05 13 dsf 300x185 Traders Could Ring Up Big Profits With This Credit Card Stock
Click to Enlarge

chart key 300x84 Traders Could Ring Up Big Profits With This Credit Card Stock[2]

Endnotes:
  1. DFS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DFS
  2. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2013/06/trade-of-the-day-discover-financial-services-dfs/
Short URL: http://invstplc.com/1fpCGTI