Tuesday, October 20, 2020

Discover Financial Services [DFS] is -35.13% lower this YTD. Is it still time to buy?

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Discover Financial Services [NYSE: DFS] slipped around -4.01 points on Monday, while shares priced at $55.02 at the close of the session, down -6.79%.

Discover Financial Services stock is now -35.13% down from its year-to-date (YTD) trading value. DFS Stock saw the intraday high of $57.09 and lowest of $54.61 per share. The company’s 52-week high price is 87.43, which means current price is +136.65% above from all time high which was touched on 01/23/20.

Compared to the average trading volume of 3.56M shares, DFS reached a trading volume of 4304198 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Discover Financial Services [DFS]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DFS shares is $61.45 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DFS stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wolfe Research have made an estimate for Discover Financial Services shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on July 31, 2020. While these analysts kept the previous recommendation, UBS raised their target price from $36 to $72. The new note on the price target was released on June 22, 2020, representing the official price target for Discover Financial Services stock. Previously, the target price had yet another drop from $55 to $52, while BMO Capital Markets kept a Outperform rating on DFS stock. On March 20, 2020, analysts decreased their price target for DFS shares from 82 to 59.

The Average True Range (ATR) for Discover Financial Services is set at 2.38, with the Price to Sales ratio for DFS stock in the period of the last 12 months amounting to 1.45. The Price to Book ratio for the last quarter was 1.96, with the Price to Cash per share for the same quarter was set at 57.23. Price to Free Cash Flow for DFS in the course of the last twelve months was 3.62.

How has DFS stock performed recently?

Discover Financial Services [DFS] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.12. With this latest performance, DFS shares gained by 10.17% in over the last four-week period, additionally plugging by 106.45% over the last 6 months – not to mention a drop of -33.66% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DFS stock in for the last two-week period is set at 50.14, with the RSI for the last a single of trading hit 46.44, and the three-weeks RSI is set at 52.05 for Discover Financial Services [DFS]. The present Moving Average for the last 50 days of trading for this stock 52.55, while it was recorded at 57.97 for the last single week of trading, and 56.91 for the last 200 days.

Discover Financial Services [DFS]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Discover Financial Services [DFS] shares currently have an operating margin of +28.10. Discover Financial Services’s Net Margin is presently recorded at +21.01.

Return on Total Capital for DFS is now 10.36, given the latest momentum, and Return on Invested Capital for the company is 9.16. Return on Equity for this stock inclined to 25.57, with Return on Assets sitting at 2.62. When it comes to the capital structure of this company, Discover Financial Services [DFS] has a Total Debt to Total Equity ratio set at 216.72. Additionally, DFS Total Debt to Total Capital is recorded at 68.43, with Total Debt to Total Assets ending up at 22.47. Long-Term Debt to Equity for the company is recorded at 181.07, with the Long-Term Debt to Total Capital now at 54.46.

Reflecting on the efficiency of the workforce at the company, Discover Financial Services [DFS] managed to generate an average of $170,872 per employee.

Earnings analysis for Discover Financial Services [DFS]

With the latest financial reports released by the company, Discover Financial Services posted 2.36/share EPS, while the average EPS was predicted by analysts to be reported at 2.28/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 3.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DFS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Discover Financial Services go to 0.70%.

Insider trade positions for Discover Financial Services [DFS]

There are presently around $14,369 million, or 86.50% of DFS stock, in the hands of institutional investors. The top three institutional holders of DFS stocks are: VANGUARD GROUP INC with ownership of 30,108,121, which is approximately 19.509% of the company’s market cap and around 0.20% of the total institutional ownership; FMR LLC, holding 24,456,424 shares of the stock with an approximate value of $1.35 billion in DFS stocks shares; and BLACKROCK INC., currently with $1.15 billion in DFS stock with ownership of nearly -2.799% of the company’s market capitalization.

Positions in Discover Financial Services stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 333 institutional holders increased their position in Discover Financial Services [NYSE:DFS] by around 48,854,902 shares. Additionally, 415 investors decreased positions by around 46,777,248 shares, while 102 investors held positions by with 165,536,277 shares. The mentioned changes placed institutional holdings at 261,168,427 shares, according to the latest SEC report filing. DFS stock had 121 new institutional investments in for a total of 17,299,759 shares, while 98 institutional investors sold positions of 6,309,356 shares during the same period.

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