Discover Financial Services (NYSE:DFS) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of DFS, it is a well-regarded dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Discover Financial Services here.
Good value average dividend payer
DFS is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of DFS’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the consumer finance industry, DFS is also trading below its peers, relative to earnings generated. This bolsters the proposition that DFS’s price is currently discounted.
Income investors would also be happy to know that DFS is a great dividend company, with a current yield standing at 2.6%. DFS has also been regularly increasing its dividend payments to shareholders over the past decade.
For Discover Financial Services, I’ve compiled three important aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for DFS’s future growth? Take a look at our free research report of analyst consensus for DFS’s outlook.
- Historical Performance: What has DFS’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DFS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.