Navigating Discover Financial Services – A Fundamental Overview

By Tamara Parker • Saturday, October 05 15:09 • Permanent Link

Shares of Diversified Financial company Discover Financial Services jumped 6.2% today. With many investors piling into DFS without a second thought, it may be a good idea to take a closer look at the stock. Here are some quick facts to get you started:

Discover Financial Services has moved 61.0% over the last year, and the S&P 500 logged a change of 32.6%
DFS has an average analyst rating of hold and is -3.12% away from its mean target price of $149.55 per share
Its trailing earnings per share (EPS) is $11.33
Discover Financial Services has a trailing 12 month Price to Earnings (P/E) ratio of 12.8 while the S&P 500 average is 29.3
Its forward earnings per share (EPS) is $12.77 and its forward P/E ratio is 11.3
The company has a Price to Book (P/B) ratio of 2.42 in contrast to the S&P 500's average ratio of 4.74
Discover Financial Services is part of the Finance sector, which has an average P/E ratio of 20.04 and an average P/B of 1.86
DFS has reported YOY quarterly earnings growth of 71.3% and gross profit margins of 0.9%
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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.