Analysts are somewhat bullish on Discover Financial stock, with 11 of 21 having a Buy or Strong Buy rating and 10 more with Hold ratings. At a share price of around $107.20, the upside potential based on a median price target of $119.00 is 11%. At the high price target of $146.00, the upside potential is 36.2%.
Fourth-quarter revenue is forecast to reach $3.68 billion, up 5.8% sequentially and 25.2% higher year over year. Adjusted EPS are forecast at $3.71, up 4.7% sequentially and by 1.9% year over year. For the full year, EPS are estimated to reach $15.63, down 12.3%, on revenue of $13.32 billion, up 10.2%.
Discover stock trades at 6.9 times expected 2022 EPS, 7.7 times estimated 2023 earnings of $13.86 and 7.2 times estimated 2024 earnings of $14.87. The stock’s 52-week range is $87.64 to $129.12, and the company pays an annual dividend of $2.40 (yield of 2.26%). Total shareholder return over the past year was negative 15.4%.
Kinder Morgan
Energy infrastructure company Kinder Morgan Inc. (NYSE: KMI) has added almost 6.5% to its share price over the past 12 months The company generates more than two-thirds of its profits from moving natural gas through its pipelines under long-term contracts that are nearly fully committed. That stable source of revenue is Kinder Morgan’s (and other pipeline operators’) source for their handsome distributions to shareholders. But to grow, Kinder Morgan and its peers need vast amounts of capital to build more pipelines. Most of that capital is borrowed, and high interest rates mitigate against borrowing. It is a juggling act, and so far, this company has been able to keep its balls in the air.
Inflation and high interest rates contribute significantly to the lukewarm analyst outlook. Of 22 brokerages covering the stock, 15 have Hold ratings and just five have Buy or Strong Buy ratings. At a share price of around $19.10, the stock trades just above its $19.00 median target. At the high price target of $24.00, the implied upside is 26.3%.
Consensus estimates call for fourth-quarter revenue of $4.86 billion, down 6.2% sequentially but up 10.0% year over year, and EPS of $0.30, up 20.5% sequentially and by 11.1% year over year. For the full 2022 fiscal year, analysts forecast EPS of $1.15, down 13.1%, on sales of $19.42 billion, up 16.9%.
Kinder Morgan stock trades at 16.6 times expected 2022 EPS, 16.8 times estimated 2023 earnings of $1.13 and 16.6 times estimated 2024 earnings of $1.15. The stock’s 52-week range is $15.78 to $20.20. Kinder Morgan pays an annual dividend of $1.11 (yield of 6.1%). Total shareholder return over the past 12 months was 13.2%.
Originally published at 24/7 Wall St.
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