Are These Finance Titans a Buy Heading Into Earnings? AXP, DFS

Core Viewpoint - The 2024 Q4 earnings season is underway, with Discover Financial Services (DFS) and American Express (AXP) among the notable companies reporting, both of which have significantly outperformed the S&P 500 over the past year [1][2][14]. Group 1: Discover Financial Services (DFS) - Analysts expect DFS to report an EPS of $3.15, reflecting a 14% increase over recent months and a substantial 100% year-over-year growth [5]. - The Zacks Consensus estimate for DFS's net interest income is $3.6 billion, which is a 3% increase from the previous year's $3.4 billion, with the company having a history of exceeding expectations in this area [6]. - DFS's current forward 12-month earnings multiple is 14.5X, indicating a 35% discount compared to the S&P 500, and the PEG ratio stands at 1.1X, suggesting a fair price for the anticipated growth [6][7]. Group 2: American Express (AXP) - AXP's EPS is projected at $3.03, which is a 3% increase over recent months and indicates a 15% year-over-year growth [8]. - The Zacks Consensus estimate for AXP's net interest income is $4.1 billion, representing a 15% increase from the previous year, with AXP also having a strong track record of positive surprises in this metric [10]. - AXP's Q3 sales reached $16.6 billion, marking the tenth consecutive period of record sales, with Q4 sales forecasted at $17.2 billion, reflecting an 8.8% year-over-year growth [11][12].