Discover (DFS) closed the most recent trading day at $48.85, moving +1.31% from the previous trading session. This change outpaced the S&P 500's 0.45% gain on the day. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.52%.
Coming into today, shares of the credit card issuer and lender had lost 15.61% in the past month. In that same time, the Finance sector gained 0.22%, while the S&P 500 gained 2.08%.
Wall Street will be looking for positivity from DFS as it approaches its next earnings report date. This is expected to be July 22, 2020. On that day, DFS is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 90.09%. Our most recent consensus estimate is calling for quarterly revenue of $2.63 billion, down 7.71% from the year-ago period.
DFS's full-year Zacks Consensus Estimates are calling for earnings of $1.67 per share and revenue of $10.87 billion. These results would represent year-over-year changes of -81.61% and -5.15%, respectively.
It is also important to note the recent changes to analyst estimates for DFS. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 12.36% lower. DFS is currently a Zacks Rank #3 (Hold).
Looking at its valuation, DFS is holding a Forward P/E ratio of 28.87. This valuation marks a premium compared to its industry's average Forward P/E of 12.57.
We can also see that DFS currently has a PEG ratio of 4.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Consumer Loans industry currently had an average PEG ratio of 2.12 as of yesterday's close.
The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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