Discover (DFS) Stock Moves -0.38%: What You Should Know
In the latest trading session, Discover (DFS) closed at $100.49, marking a -0.38% move from the previous day. This change was narrower than the S&P 500's 0.78% loss on the day. Meanwhile, the Dow lost 0.88%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Coming into today, shares of the credit card issuer and lender had gained 0.71% in the past month. In that same time, the Finance sector lost 1.15%, while the S&P 500 lost 3.4%.
Investors will be hoping for strength from Discover as it approaches its next earnings release. On that day, Discover is projected to report earnings of $3.73 per share, which would represent year-over-year growth of 5.37%. Our most recent consensus estimate is calling for quarterly revenue of $3.33 billion, up 19.88% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.32 per share and revenue of $12.92 billion. These totals would mark changes of -14.08% and +6.91%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Discover. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.33% lower. Discover is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Discover is currently trading at a Forward P/E ratio of 6.58. Its industry sports an average Forward P/E of 5.62, so we one might conclude that Discover is trading at a premium comparatively.
Meanwhile, DFS's PEG ratio is currently 0.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DFS's industry had an average PEG ratio of 0.27 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 175, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Discover Financial Services (DFS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
