What’s Discover Financial Services (DFS)’s Price to Earnings Ratio?


Discover Financial Services (NYSE:DFS) saw an upside of 1.09% to close Tuesday at $111.49 after adding $1.2 on the day. The 5-day average trading volume is 4,877,740 shares of the company’s common stock. It has gained $112.37 in the past week and touched a new high 3 times within the past 5 days. An average of 2,701,245 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,319,446.

DFS’s 1-month performance is 14.00% or $13.89 on its low of $94.42 reached on 01/19/23. The company’s shares have touched a 52-week low of $87.64 and high of $129.12, with the stock’s rally to the 52-week high happening on 01/24/23. YTD, DFS has achieved 13.96% or $13.66 and has reached a new high 9 times. However, the current price is down -13.65% from the 52-week high price.

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Insider Transactions

DFS stock investors last saw insider trading activity on Dec 07.Moskow Michael H (Director) most recently sold 1,291 shares at $105.10 per share on Dec 07. This transaction cost the insider $135,684. SVP, Controller & CAO, Kolsky Shifra, sold 800 shares at a price of $127.00 on Feb 15. Then, on Feb 15, EVP, Chief Financial Officer Greene John sold 4,443 shares at a price of $127.95 per share. This transaction amounted to $568,464.

Valuation Metrics

DFS stock has a beta of 1.42. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.22 while the price-to-book (PB) in the most recent quarter is 2.30, with the price to cash flow ratio at 5.19.

As well, the company’s long term debt to equity for the quarter ending September 29 was 1.35, while the total debt to equity was 1.53. The firm’s gross profit as reported stood at $9.52 billion against revenue of $10.65 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected DFS to announce $3.72 per share in earnings in its latest quarter, but it posted $3.54, representing a -4.80% surprise. Shareholders hold equity totaling $273.23 million.

Let’s look briefly at Discover Financial Services (DFS) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 70.62% to suggest the stock is trending Overbought, with historical volatility in this time period at 35.07%.

The stock’s 5-day moving average is $106.43, reflecting a +5.77% or $6.08 change from its current price. DFS is currently trading +15.10% above its 20-day SMA, +10.53% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +11.45% and SMA200 by+0.90%.

Stochastic %K and %D was 91.30% and 77.70% and the average true range (ATR) pointed at 3.63. The RSI (14) points at 65.59%, while the 14-day stochastic is at 95.10% with the period’s ATR at 3.39. The stock’s 9-day MACD Oscillator is pointing at 2.88 and 4.22 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Discover Financial Services (NYSE: DFS), Barclays downgraded it to an Equal weight rating. They previously had an Overweight rating on the stock. Analysts offering their rating for DFS stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate DFS as a “sell,”, while 11 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 0 rates the stock as overweight while 11 have offered a “buy” rating.

What is DFS’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $97.00 and a high of $127.00, with their median price target at $118.00. Looking at these predictions, the average price target given by analysts is for Discover Financial Services (DFS) stock is $116.11.


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