Capital One Financial (COF) is buying rival Discover Financial Services (DFS), The Wall Street Journal reported Monday.
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A deal to merge the big credit-card players could be announced as soon as Tuesday, the Wall Street Journal said, citing sources. Earlier Monday, Bloomberg reported that Capital One was mulling a Discover deal
Discover Financial stock has a market capitalization of $27.6 billion, but a deal would likely carry a premium. Capital One stock’s valuation is $52.3 billion.
COF stock has risen 4.7% in 2024, rebounding last week from the 10-week line, near 52-week highs. DFS stock has dipped 1.7% this year, including a 10.8% tumble on Jan. 18Â after reporting tumbling Q4 earnings. Discover Financial, which has been finding support at a rising 50-day line since then, is close to a 113.42 buy point from a cup-with-handle base.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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