30 Best Stocks To Invest In According to Billionaires

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22. Discover Financial Services (NYSE:DFS)

No. of Billionaire Investors: 21

Total Value of Billionaire Holdings: $903.85 Million

Discover Financial Services (NYSE:DFS) is a digital banking and payment services company. It is a bank holding company, as well as a financial holding company. The company operates through two segments: Digital Banking and Payment Services.

On January 27, Truist analyst Brian Foran raised the price target on DFS shares to $262 from $233, keeping a Buy rating on the stock. The upgrade follows the Q4 earnings of $5.11, which was well above analyst estimates of $3.20 per share. The revenue came in at $4.76 billion, surpassing the expected $4.41 billion. Foran’s price target increase indicates an improved earnings outlook based on a higher net interest margin path, improving credit, and a deceleration in expenses.

During Q4 2024, the company completed the sale of its private student loan portfolio, improving DFS’ financial position and reflecting a streamlined business model. The average consumer deposits during the quarter soared by 10% year-over-year, enhancing the company’s funding mix.

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