As Barrons's reports: "Discover Earnings Beat Forecasts. The Stock-and Competitor Shares-Are Falling. ..." For more coverage, read the full article here. On the back of this news, Discover Financial Services sank -2.1% to a price of $100.19. Are the markets overreacting?
Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. The company belongs to the Financial Services sector, which has an average price to earnings (P/E) ratio of 13.34 and an average price to book (P/B) ratio of 1.95. In contrast, Discover Financial Services has a trailing 12 month P/E ratio of 11.3 and a P/B ratio of 2.5.
At today's price of $100.19 per share, Discover Financial Services is -13.5% away from its target price of $115.82, and on average, analysts give the stock a rating of buy. 3.2% of the company's shares are linked to short positions, and 86.0% of the shares are owned by institutional investors.