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

Company Overview

Discover Financial Services is a diversified direct banking and payment services company headquartered in Riverwoods, Illinois. The company’s core business centers on the Discover® credit card, one of the largest credit card brands in the United States. Through its direct banking subsidiary, Discover Bank, the company also offers a range of consumer banking products designed to complement its credit franchise, including checking accounts, savings accounts, money market accounts and certificates of deposit.

Beyond its credit card and deposit offerings, Discover Financial Services provides an array of lending products tailored to consumer needs. These include personal loans, student loans and home equity loans, as well as debt consolidation loans. Each product is supported by digital tools and customer service platforms intended to simplify application, management and payment processes, reflecting the company’s emphasis on technological innovation and customer engagement.

In addition to its retail banking and lending operations, Discover Financial Services operates a global payments network. Discover® Network processes credit and debit card transactions at millions of merchant locations in the United States, while its PULSE® network provides ATM and point-of-sale acceptance for debit card transactions. The company’s network services division also facilitates clearing and settlement, fraud management and value-added services for merchants and financial institutions.

Originally launched as part of Sears in 1985 and introduced to the public in 1986, Discover has evolved through a series of spin-offs and acquisitions to become an independent publicly traded company (NYSE:DFS). Over the years, Discover has expanded its footprint across the United States and maintains select international acceptance agreements to serve cardholders abroad. Under the leadership of CEO Roger Hochschild, the company continues to pursue growth through product innovation, strategic partnerships and investments in digital capabilities.

Key Stats

• Today's Range: $198.70 to $203.02
• 50-Day Range: $182.56 to $204.08
• 52-Week Range: $122.37 to $207.42
• Volume: 31.29 million shs
• Average Volume: 1.85 million shs
• Market Capitalization: $49.77 billion
• P/E Ratio: 12.39
• Dividend Yield: 1.42%
• Price Target: $191.64
• Consensus Rating: Moderate Buy

Discover Financial Services Stock Analysis - MarketRank™

Discover Financial Services scored higher than 77% of companies evaluated by MarketBeat, and ranked 1003rd out of 2,763 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Discover Financial Services has received a consensus rating of Moderate Buy. The company's average rating score is 2.58, and is based on 5 buy ratings, 6 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Discover Financial Services has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 13.83%

Earnings Growth

Earnings for Discover Financial Services are expected to grow by 13.83% in the coming year, from $13.88 to $15.80 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Discover Financial Services is 12.39, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 25.53.

Price to Earnings Ratio vs. Sector

The P/E ratio of Discover Financial Services is 12.39, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 20.07.

Price to Earnings Growth Ratio

Discover Financial Services has a PEG Ratio of 1.51. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Discover Financial Services has a P/B Ratio of 2.77. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: N/A
• Short Interest Level: N/A

Short Interest

There is no current short interest data available for DFS.

Dividend

• Score: 4.2 / 5
• Dividend Strength: Strong

Dividend Yield

Discover Financial Services pays a meaningful dividend of 1.37%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Discover Financial Services has been increasing its dividend for 14 years.

Dividend Coverage

The dividend payout ratio of Discover Financial Services is 14.65%. 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 17.72% 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

Short Interest

There is no current short interest data available for DFS.

News and Social Media

• Score: 1.4 / 5
• News Sentiment: 0.50

News Sentiment

Discover Financial Services has a news sentiment score of 0.50. 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 lower news sentiment than the 0.67 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 2 news articles for Discover Financial Services this week, compared to 17 articles on an average week.

Search Interest

Only 1 people have searched for DFS on MarketBeat in the last 30 days. This is a decrease of 0% compared to the previous 30 days.

MarketBeat Follows

Only 1 people have added Discover Financial Services to their MarketBeat watchlist in the last 30 days. This is a decrease of -50% 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 $173.23 at the beginning of the year. Since then, DFS shares have increased by 14.2% and is now trading at $197.7550.

How were Discover Financial Services' earnings last quarter?

Discover Financial Services (NYSE:DFS) posted its quarterly earnings data on Wednesday, April, 23rd. The financial services provider reported $4.25 EPS for the quarter, topping analysts' consensus estimates of $3.33 by $0.92. The financial services provider had revenue of $4.25 billion for the quarter, compared to analysts' expectations of $4.25 billion. Discover Financial Services had a trailing twelve-month return on equity of 26.18% and a net margin of 17.29%.
Read the conference call transcript.

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.

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.

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

• Last Earnings: 4/23/2025
• Record date for 6/5 Dividend: 5/23/2025
• Ex-Dividend for 6/5 Dividend: 5/23/2025
• Dividend Payable: 6/05/2025
• Today: 7/03/2025
• Next Earnings (Estimated): 7/16/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: Personal credit institutions
• Sub-Industry: Consumer Finance
• Current Symbol: NYSE:DFS
• CIK: 1393612
• Web: www.discover.com
• Phone: (224) 405-0900
• Fax: 224-405-4993
• Employees: 20,200
• Year Founded: 1985

Price Target and Rating

• Average Stock Price Target: $191.64
• High Stock Price Target: $239.00
• Low Stock Price Target: $119.00
• Potential Upside/Downside: -3.1%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.58
• Research Coverage: 12 Analysts

Profitability

• EPS (Trailing Twelve Months): $19.11
• Trailing P/E Ratio: 12.39
• Forward P/E Ratio: 14.25
• P/E Growth: 1.51
• Net Income: $4.54 billion
• Net Margins: 17.29%
• Pretax Margin: 25.70%
• Return on Equity: 26.18%
• Return on Assets: 2.72%

Debt

• Debt-to-Equity Ratio: 1.09
• Current Ratio: 1.09
• Quick Ratio: 1.03

Sales & Book Value

• Annual Sales: $18.00 billion
• Price / Sales: 2.76
• Cash Flow: $11.59 per share
• Price / Cash Flow: 17.06
• Book Value: $71.33 per share
• Price / Book: 2.77

Miscellaneous

• Outstanding Shares: 251,653,000
• Free Float: 249,577,000
• Market Cap: $49.77 billion
• Optionable: Optionable
• Beta: 1.16