Discover Fin Sv (DFS) Price: $26.08

Industry: FinanceChaikin Power Gauge Report | Generated: Wed Jul 27 11:30 EDT 2011

Discover Fin Sv

DFS$26.08

Expert Opinions

Price/Volume Activity

Earnings Performance

Financial Metrics

Power Gauge Rating

DFS Discover Fin ..

News Sentiment :Neutral

July 20, 2011

News Sentiment Rating

Neutral

Chaikin Sentiment GaugeTM

for DFS is neutral. Stories concerning DFS have abalanced or neutral sentiment.

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential. High Potential Neutral Low Potential

DFS - Neutral

The Chaikin Power Gauge RatingTM

for DFS is neutral with very attractivefinancial metrics, very strong earnings performance, very bullish price/volumeactivity and very positive expert opinions.

DFS's financial metrics are excellent due to a high return on equity.

DFS's financial metrics are excellent due to a high long term debt to equityratio.

Despite these bullish factors, Chaikin Power Tools has identified a negativetrend resulting in a neutral rating.

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Financials & Earnings

Business Value

Price to Sales Ratio

Return on Equity

Price to Book Value

LT Debt/Equity Ratio

Financial Metrics Financial Metrics Rating

Assets and Liabilities Valuation Returns

Very Bullish

DFS's financial metrics are excellent. The company yields a high return onshareholder's equity and generates high free cash flow relative to marketcapitalization.

The rank is based on a high long term debt to equity ratio, high return on equityand relatively high cash flow.

Ratio TTM

Current Ratio 1.44

LT Debt/Equity 2.74

Ratio TTM

Price/Book 2.20

Price/Sales 1.73

Ratio TTM

Return on Invest 6.7%

Return on Equity 24.7%

Earnings Consistency

Projected P/E Ratio

Earnings Trend

Earnings Surprise

Earnings Growth

Earnings Performance Earnings Performance Rating

5 Year Revenue and Earnings Growth EPS Estimates

EPS Surprise EPS Quarterly Results

Very Bullish

DFS's earnings performance has been very strong. The company has a history ofstrong earnings growth and has outperformed analysts' earnings estimates.

The rank is based on high earnings growth over the past 3-5 years, better thanexpected earnings in recent quarters, an upward trend in earnings this year, arelatively low projected P/E ratio and inconsistent earnings over the past 5 years.

11/06 11/07 11/08 11/09 11/10

Revenue(M) 5,997.46 5,051.87 6,957.02 10,378.75 8,241.22

Rev % Growth 17.32% -15.77% 37.71% 49.18% -20.60%

EPS $2.26 $1.18 $1.93 $2.42 $1.23

EPS % Growth 86.78% -47.79% 63.56% 25.39% -49.17%

Factor Actual EPS Prev EST EPS Current Change

Quarterly EPS $0.47 $0.80 +0.33

Yearly EPS $1.23 $3.49 +2.26

Factor Actual EPS Growth Est EPS Growth Change

3-5 year EPS 13.57% 12.33% -1.24

Estimate Actual Difference % Difference

Latest Qtr $0.72 $1.09 $0.37 51.39

1 Qtr Ago $0.53 $0.84 $0.31 58.49

2 Qtr Ago $0.42 $0.64 $0.22 52.38

3 Qtr Ago $0.35 $0.47 $0.12 34.29

FY Qtr 1 Qtr 2 Qtr 3 Qtr 4 Total

11/09 $0.25 $0.43 $1.09 $0.63 $2.40

11/10 $-0.22 $0.34 $0.47 $0.64 $1.23

11/11 $0.84 $1.09 - - -

Fiscal Year End Month is November.

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Price Trend & Expert Opinions

Volume Trend

Price Trend ROC

Price Trend

Chaikin Money Flow

Relative Strength vs Market

Price/Volume Activity Price/Volume Activity Rating

Relative Strength vs S&P500 Index

Chart shows whether DFS is performing better or worse than the market.

Chaikin Money Flow

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity Price Activity Volume Activity

Very Bullish

Price and volume activity for DFS is very bullish. DFS has outperformed the S&P500 over 26 weeks and is experiencing sustained buying.

The rank for DFS is based on its price strength versus the market, positiveChaikin money flow, a positive Chaikin price trend, a negative Chaikin price trendROC and an increasing volume trend.

Factor Value

52 Week High 27.52

52 Week Low 13.91

% Change YTD Rel S&P 500 31.05%

Factor Value

% Change Price - 4 Weeks 5.20%

% Change Price - 24 Weeks 26.54%

% Change Price - 4 Wks Rel to S&P 0.19%

% Change Price - 24 Wks Rel to S&P 24.54%

Factor Value

Average Volume 20 Days 7,344,930

Average Volume 90 Days 6,437,471

Chaikin Money Flow Persistency 80%

Relative Strength vs Industry

Analyst Opinions

Insider Activity

Short Interest

Earnings Estimate Revisions

Expert Opinions Expert Opinions

Earnings Estimate Revisions Analyst Recommendations EPS Estimates Revision Summary

Very Bullish

Expert opinions about DFS are very positive. Analysts are raising their EPSestimates for DFS and shorting of DFS is low.

The rank for DFS is based on analysts revising earnings estimates upward, a lowshort interest ratio, insiders not purchasing significant amounts of stock andoptimistic analyst opinions.

Current 7 Days Ago % Change

Current Qtr 0.82 0.80 +2.50%

Next Qtr 0.78 0.77 +1.30%

Current 30 Days Ago % Change

Current FY 3.55 3.33 0.22

Factor Value

Mean this Week Buy

Mean Last Week Buy

Change 0.00

Mean 5 Weeks Ago Buy

Last Week Last 4 Weeks

Up Down Up Down

Curr Qtr 0 0 2 0

Curr Yr 0 0 4 0

Next Qtr 0 0 2 0

Next Yr 0 0 4 0

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The Company & Its Competitors

DFS's Competitors in Finance

Company Power Historic EPS Projected EPS Profit Margin PEG PE Revenue(M)Gauge growth growth

DFS 13.57% 12.33% 22.75% 0.61 8.58 8,241

EZPW 28.83% 15.00% 13.64% 0.86 13.59 733

AEA 4.31% 15.00% 6.71% 0.62 10.43 600

CACC 17.31% - 39.20% - 13.56 442

COF 10.77% 9.80% 19.17% 0.69 6.43 19,067

NNI 1.51% 17.00% 17.91% 0.28 3.94 1,062

WRLD 15.15% - 18.57% - 12.15 491

SLM 42.41% 10.00% 1.88% 0.89 7.80 6,776

News Headlines for DFS

Business events scheduled for Thursday - Jun22, 2011

Discover Financial to buy back $1 billion in stock- Jun 15, 2011

Discover Financial Services Announces $1Billion Share Repurchase Program - Jun 15,2011

Tree.com sells mortgage unit to DiscoverFinancial - May 12, 2011

Discover to Acquire Mortgage OriginationBusiness from Tree.com for $55.9 Million - May12, 2011

Company Details Company Profile

DISCOVER FIN SV2500 LAKE COOK ROADRIVERWOODS, IL 60015USAPhone: 224-405-0900Fax: 224-405-4993Website:http://www.discoverfinancial.comFull Time Employees: 10,300Sector: Finance

Discover Financial Services operates the Discover Card with more than fifty millioncardmembers, the Discover Network with millions of merchant and cash access locations,and the Goldfish credit card business in the United Kingdom. Discover Financial Servicesalso operates the pulse ATM/debit network, which serves more than four thousand fourhundred financial institutions and includes nearly two lakhs sixty thousand ATMs, as wellas POS terminals, nationwide.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculatedby evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is thestrongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe.

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LM 2.3 DS 3.0 LS 2.1

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