Of 27 analysts that are covering Discover Financial Services (DFS) in June, nine recommend a “strong buy,” eight recommend a “hold,” and ten recommend a “buy” on the stock. Discover Financial didn’t have “strong sell” or “sell” ratings.
The stock might witness a rise in favorable ratings due to the positive outlook and supportive macroeconomic factors. Consumer financial companies (IYF) tend to witness a boost in their business due to higher employment and spending levels. The current unemployment rate in the United States is 3.8%, which signals the economy’s improved appetite. The favorable interest rate environment would also provide a base for Discover Financial’s interest income in 2018.
Mastercard (MA), Visa (V), and American Express (AXP) also have the brighter outlook for 2018 due to the improving economy and scope of digital payments. These factors could also help the companies in the June quarter.
Of 39 analysts that are covering Mastercard in June, 17 analysts recommend a “strong buy,” three recommend a “hold,” and 19 recommend a “buy.” Mastercard doesn’t have any “strong sell” or “sell” ratings.
Mastercard’s management views Europe as a profitable market. Management expects the economy to provide substantial opportunities for digital payments. Mastercard is also optimistic about the Indian economy. Increased support from the government could help Mastercard tap the available opportunities.