Traders Could Ring Up Big Profits With This Credit Card Stock

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

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.

DFS Chart
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Chart Key[2]

  1. DFS:
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