There Is Still Room For Discover Financial Services (DFS) to Improve Its Value – Let’s Wait for Clarity

Discover Financial Services (NYSE: DFS) closed the day trading at $108.21 up 0.06% from the previous closing price of $108.14. In other words, the price has increased by $+0.67 from its previous closing price. On the day, 2194196 shares were traded. DFS stock price reached its highest trading level at $109.21 during the session, while it also had its lowest trading level at $107.61.

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For a better understanding of DFS, let’s look at its different ratios. In the meantime, Its Debt-to-Equity ratio is 1.53 whereas as Long-Term Debt/Eq ratio is at 1.35.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, UBS on November 21, 2022, initiated with a Neutral rating and assigned the stock a target price of $120.

On October 26, 2022, Morgan Stanley Upgraded its rating to Overweight which previously was Equal-Weight and also upped its target price recommendation from $104 to $116.

JP Morgan Downgraded its Overweight to Neutral on September 06, 2022, whereas the target price for the stock was revised from $140 to $113.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Feb 15 when Kolsky Shifra sold 800 shares for $127.00 per share. The transaction valued at 101,600 led to the insider holds 2,450 shares of the business.

Greene John sold 4,443 shares of DFS for $568,464 on Feb 15. The EVP, Chief Financial Officer now owns 26,613 shares after completing the transaction at $127.95 per share. On Feb 09, another insider, Capozzi Daniel Peter, who serves as the EVP, President – US Cards of the company, sold 8,649 shares for $124.59 each. As a result, the insider received 1,077,579 and left with 22,397 shares of the company.

Valuation Measures:

As of this moment, Discover’s Price-to-Earnings (P/E) ratio for their current fiscal year is 7.04, and their Forward P/E ratio for the next fiscal year is 7.71. For the stock, the TTM Price-to-Sale (P/S) ratio is 2.51 while its Price-to-Book (P/B) ratio in mrq is 2.23.

Stock Price History:

The Beta on a monthly basis for DFS is 1.41, which has changed by -9.45% over the last 52 weeks, in comparison to a change of -14.84% over the same period for the S&P500. Over the past 52 weeks, DFS has reached a high of $130.81, while it has fallen to a 52-week low of $87.64. The 50-Day Moving Average of the stock is 98.70, while the 200-Day Moving Average is calculated to be 105.39.

Shares Statistics:

Over the past 3-months, DFS traded about 1.68M shares per day on average, while over the past 10 days, DFS traded about 1.99M shares per day. A total of 273.00M shares are outstanding, with a floating share count of 271.52M. Insiders hold about 0.20% of the company’s shares, while institutions hold 85.10% stake in the company. Shares short for DFS as of Oct 30, 2022 were 3.21M with a Short Ratio of 3.21M, compared to 3.63M on Sep 29, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.17% and a Short% of Float of 1.35%.

Dividends & Splits

DFS’s forward annual dividend rate is 2.40, up from 2.20 a year ago. Against a Trailing Annual Dividend Yield of 2.05%, it implies a Forward Annual Dividend Yield of 2.22%. The stock’s 5-year Average Dividend Yield is 2.14.

Earnings Estimates

Current recommendations for the stock of the company come from 19 analysts. On average, analysts expect EPS of $3.66 for the current quarter, with a high estimate of $4.11 and a low estimate of $2.82, while EPS last year was $3.64. The consensus estimate for the next quarter is $3.89, with high estimates of $5.1 and low estimates of $2.61.

Analysts are recommending an EPS of between $15.83 and $14.37 for the fiscal current year, implying an average EPS of $15.37. EPS for the following year is $14.2, with 21 analysts recommending between $15.49 and $11.99.

Revenue Estimates

16 analysts predict $3.64B in revenue for the current quarter. It ranges from a high estimate of $3.72B to a low estimate of $3.4B. As of the current estimate, Discover Financial Services’s year-ago sales were $2.94B, an estimated increase of 23.90% from the year-ago figure. For the next quarter, 11 analysts are estimating revenue of $3.5B, an increase of 20.70% less than the figure of $23.90% in the same quarter last year. There is a high estimate of $3.63B for the next quarter, whereas the lowest estimate is $3.13B.

A total of 19 analysts have provided revenue estimates for DFS’s current fiscal year. The highest revenue estimate was $13.49B, while the lowest revenue estimate was $12.66B, resulting in an average revenue estimate of $13.23B. In the same quarter a year ago, actual revenue was $12.09B, up 9.50% from the average estimate. Based on 19 analysts’ estimates, the company’s revenue will be $14.42B in the next fiscal year. The high estimate is $15.15B and the low estimate is $13.14B. The average revenue growth estimate for next year is up 9.00% from the average revenue estimate for this year.