Discover Financial Services (DFS) Stock Price, News & Analysis

Company Overview

Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; personal loans, home loans, and other consumer lending; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts. The Payment Services segment operates the PULSE to access automated teller machines, debit, and electronic funds transfer network; and Diners Club International, a payments network that issues Diners Club branded charge cards and/or provides card acceptance services, as well as offers payment transaction processing and settlement services. The company was incorporated in 1960 and is based in Riverwoods, Illinois.

Key Stats

• Today's Range: $144.53 to $146.68
• 50-Day Range: $127.74 to $150.53
• 52-Week Range: $79.04 to $152.90
• Volume: 1.33 million shs
• Average Volume: 1.63 million shs
• Market Capitalization: $36.48 billion
• P/E Ratio: 12.88
• Dividend Yield: 1.93%
• Price Target: $136.12
• Consensus Rating: Hold

Discover Financial Services Stock Analysis - MarketRank™

Discover Financial Services scored higher than 90% of companies evaluated by MarketBeat, and ranked 7th out of 49 stocks in the financial services sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.2 / 5
• Analyst Rating: Hold

Consensus Rating

Discover Financial Services has received a consensus rating of Hold. The company's average rating score is 2.40, and is based on 8 buy ratings, 12 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Discover Financial Services has only been the subject of 3 research reports in the past 90 days.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: -1.60%

Earnings Growth

Earnings for Discover Financial Services are expected to decrease by -1.60% in the coming year, from $13.15 to $12.94 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Discover Financial Services is 12.88, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 131.83.

Price to Earnings Ratio vs. Sector

The P/E ratio of Discover Financial Services is 12.88, which means that it is trading at a less expensive P/E ratio than the Financial Services sector average P/E ratio of about 391.32.

Price to Earnings Growth Ratio

Discover Financial Services has a PEG Ratio of 0.94. PEG Ratios below 1 indicate that a company could be undervalued.

Price to Book Value per Share Ratio

Discover Financial Services has a P/B Ratio of 2.64. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.14% of the float of Discover Financial Services has been sold short.

Short Interest Ratio / Days to Cover

Discover Financial Services has a short interest ratio ("days to cover") of 2.3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Discover Financial Services has recently increased by 22.84%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 4.2 / 5
• Dividend Strength: Strong

Dividend Yield

Discover Financial Services pays a meaningful dividend of 1.90%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Discover Financial Services has been increasing its dividend for 13 years.

Dividend Coverage

The dividend payout ratio of Discover Financial Services is 31.93%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Discover Financial Services will have a dividend payout ratio of 21.64% next year. This indicates that Discover Financial Services will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 3.9 / 5
• Environmental Score: -0.24

Percentage of Shares Shorted

1.14% of the float of Discover Financial Services has been sold short.

Short Interest Ratio / Days to Cover

Discover Financial Services has a short interest ratio ("days to cover") of 2.3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Discover Financial Services has recently increased by 22.84%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 3.7 / 5
• News Sentiment: 0.64

News Sentiment

Discover Financial Services has a news sentiment score of 0.64. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.48 average news sentiment score of Financial Services companies.

News Coverage This Week

MarketBeat has tracked 35 news articles for Discover Financial Services this week, compared to 11 articles on an average week.

Search Interest

17 people have searched for DFS on MarketBeat in the last 30 days. This is an increase of 55% compared to the previous 30 days.

MarketBeat Follows

12 people have added Discover Financial Services to their MarketBeat watchlist in the last 30 days. This is an increase of 200% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Discover Financial Services insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 0.69% of the stock of Discover Financial Services is held by insiders.

Percentage Held by Institutions

86.94% of the stock of Discover Financial Services is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

DFS Stock Analysis - Frequently Asked Questions

How have DFS shares performed this year?

Discover Financial Services' stock was trading at $112.40 at the beginning of the year. Since then, DFS shares have increased by 29.4% and is now trading at $145.45.
View the best growth stocks for 2024 here.

How were Discover Financial Services' earnings last quarter?

Discover Financial Services (NYSE:DFS) released its earnings results on Wednesday, October, 16th. The financial services provider reported $3.69 EPS for the quarter, beating the consensus estimate of $3.28 by $0.41. The financial services provider had revenue of $5.91 billion for the quarter, compared to analysts' expectations of $4.36 billion. Discover Financial Services had a trailing twelve-month return on equity of 20.92% and a net margin of 12.88%.
Read the conference call transcript.

How will Discover Financial Services' stock buyback program work?

Discover Financial Services' board initiated a share repurchase program on Wednesday, April 19th 2023, which allows the company to repurchase $2,700,000,000 in outstanding shares, according to EventVestor. This means that the company could repurchase up to 9.8% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board believes its stock is undervalued.

Does Discover Financial Services have any subsidiaries?

Discover Financial Services subsidiaries include Home Loan Center, Student Loan Corporation, First National Bank Alaska, Diners Club International, DFS Corporate Services LLC, DFS GSD Corp., DFS International Inc., and others.

Who are Discover Financial Services' major shareholders?

Top institutional shareholders of Discover Financial Services include Vest Financial LLC (0.08%), Raymond James & Associates (0.06%), Vontobel Holding Ltd. (0.03%) and Eldred Rock Partners LLC (0.03%). Insiders that own company stock include Carlos Minetti, Michael H Moskow, Robert Andrew Eichfeld, John Greene, Cynthia A Glassman, Shifra Kolsky and Daniel Peter Capozzi.
View institutional ownership trends.

How do I buy shares of Discover Financial Services?

Shares of DFS stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Discover Financial Services own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Discover Financial Services investors own include NVIDIA (NVDA), Chevron (CVX), Meta Platforms (META), Bristol-Myers Squibb (BMY), Broadcom (AVGO), Salesforce (CRM) and Advanced Micro Devices (AMD).

Company Calendar

• Ex-Dividend for 9/5 Dividend: 8/22/2024
• Dividend Payable: 9/05/2024
• Last Earnings: 10/16/2024
• Today: 10/22/2024
• Ex-Dividend for 12/5 Dividend: 11/21/2024
• Dividend Payable: 12/05/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 1/15/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Financial Services
• Industry: Credit Services
• Sub-Industry: Consumer Finance
• Current Symbol: NYSE:DFS
• CUSIP: 25470910
• CIK: 1393612
• Web: www.discover.com
• Phone: (224) 405-0900
• Fax: 224-405-4993
• Employees: 21,100
• Year Founded: 1985

Price Target and Rating

• Average Stock Price Target: $136.12
• High Stock Price Target: $168.00
• Low Stock Price Target: $98.00
• Potential Upside/Downside: -6.4%
• Consensus Rating: Hold
• Rating Score (0-4): 2.40
• Research Coverage: 20 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $8.77
• Trailing P/E Ratio: 12.88
• Forward P/E Ratio: 11.06
• P/E Growth: 0.94
• Net Income: $2.94 billion
• Net Margins: 12.88%
• Pretax Margin: 17.15%
• Return on Equity: 20.92%
• Return on Assets: 1.94%

Debt

• Debt-to-Equity Ratio: 1.28
• Current Ratio: 1.12
• Quick Ratio: 1.04

Sales & Book Value

• Annual Sales: $17.40 billion
• Price / Sales: 2.10
• Cash Flow: $11.90 per share
• Price / Cash Flow: 12.22
• Book Value: $55.08 per share
• Price / Book: 2.64

Miscellaneous

• Outstanding Shares: 250,778,000
• Free Float: 249,340,000
• Market Cap: $36.48 billion
• Optionable: Optionable
• Beta: 1.41