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Analysts Are Recommending Discover Financial Services (DFS) As A Buy Candidate

Discover Financial Services (NYSE:DFS) has a beta value of 1.42 and has seen 0.66 million shares traded in the recent trading session. The company, currently valued at $28.58B, closed the recent trade at $111.35 per share which meant it lost -$0.14 on the day or -0.13% during that session. The DFS stock price is -15.96% off its 52-week high price of $129.12 and 21.29% above the 52-week low of $87.64. If we look at the company’s 10-day average daily trading volume, we find that it stood at 3.54 million shares traded. The 3-month trading volume is 2.17 million shares.

The consensus among analysts is that Discover Financial Services (DFS) is an Overweight stock at the moment, with a recommendation rating of 2.50. 0 analysts rate the stock as a Sell, while 0 rate it as Overweight. 11 out of 23 have rated it as a Hold, with 11 advising it as a Buy. 1 have rated the stock as Underweight. The expected earnings per share for the stock is $3.66.

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Discover Financial Services (NYSE:DFS) trade information

Sporting -0.13% in the red today, the stock has traded in the green over the last five days, with the highest price hit on Tuesday, 01/24/23 when the DFS stock price touched $111.35 or saw a rise of 2.07%. Year-to-date, Discover Financial Services shares have moved 13.96%, while the 5-day performance has seen it change 5.77%. Over the past 30 days, the shares of Discover Financial Services (NYSE:DFS) have changed 14.00%. Short interest in the company has seen 7.54 million shares shorted with days to cover at 4.2.

Wall Street analysts have a consensus price target for the stock at $116.11, which means that the shares’ value could jump 4.1% from the levels at last check today. The projected low price target is $97.00 while the price target rests at a high of $127.00. In that case, then, we find that the latest price level in today’s session is -14.05% off the targeted high while a plunge would see the stock lose 12.89% from the levels at last check today.

Discover Financial Services (DFS) estimates and forecasts

Figures show that Discover Financial Services shares have outperformed across the wider relevant industry. The company’s shares have gained 11.47% over the past 6 months, with this year growth rate of -9.68%, compared to -25.20% for the industry. Other than that, the company has, however, lowered its growth outlook for the 2023 fiscal year revenue. Growth estimates for the current quarter are 0.50% and -7.80% for the next quarter. Revenue growth from the last financial year stood is estimated to be 9.50%.

16 analysts offering their estimates for the company have set an average revenue estimate of $3.64 billion for the current quarter. 11 have an estimated revenue figure of $3.5 billion for the next quarter concluding in Mar 2023. Year-ago sales stood $2.94 billion and $2.9 billion respectively for this quarter and the next, and analysts expect sales will grow by 23.90% for the current quarter and 20.70% for the next.

If we evaluate the company’s growth over the last 5-year and for the next 5-year period, we find that annual earnings growth was 25.40% over the past 5 years.

DFS Dividends

Discover Financial Services is expected to release its next earnings report between April 25 and May 01 this year, and investors are excited at the prospect of better dividends despite the company’s debt issue. The forward dividend is 2.40 at a share yield of 2.15%. The company’s dividend yield has gone up over the past 12 months.

Discover Financial Services (NYSE:DFS)’s Major holders

Insiders own 0.62% of the company shares, while shares held by institutions stand at 86.03% with a share float percentage of 86.57%. Investors are also buoyed by the number of investors in a company, with Discover Financial Services having a total of 1,249 institutions that hold shares in the company. The top two institutional holders are Vanguard Group, Inc. (The) with over 35.39 million shares worth more than $3.35 billion. As of Jun 29, 2022, Vanguard Group, Inc. (The) held 12.95% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the holding of over 20.66 million shares as of Jun 29, 2022. The firm’s total holdings are worth over $1.95 billion and represent 7.56% of shares outstanding.

Also the top two Mutual Funds that are holding company’s shares are Washington Mutual Investors Fund and Vanguard Total Stock Market Index Fund. As of Sep 29, 2022, the former fund manager holds about 3.26% shares in the company for having 8.91 million shares of worth $810.27 million while later fund manager owns 8.27 million shares of worth $782.51 million as of Jun 29, 2022, which makes it owner of about 3.03% of company’s outstanding stock.

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