Discover Financial Services [DFS] is -9.10% lower this YTD. Is it still time to buy?

Discover Financial Services [NYSE: DFS] closed the trading session at $77.10 on 11/17/20. The day’s price range saw the stock hit a low of $74.45, while the highest price level was $77.44. The company report on November 10, 2020 that areeba and Discover sign Network Alliance Agreement.

Agreement will increase international acceptance for all cardholders and provide additional payment options in the Lebanese payment environment.

areeba and Discover signed a strategic agreement that increases the global acceptance footprint for both organizations. The agreement gives Discover, Diners Club International, PULSE and Network Alliance cardholders the ability to use their cards on the areeba network, which includes Point-of-Sale (POS) and e-commerce platforms across Lebanon.

The stocks have a year to date performance of -9.10 percent and weekly performance of 1.00 percent. The stock has been moved at 88.00 percent over the last six months. The stock has performed 21.30 percent around the most recent 30 days and changed 51.74 percent over the most recent 3-months.

If compared to the average trading volume of 3.03M shares, DFS reached to a volume of 3486403 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to 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 $73.26 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 3.08, with the Price to Sales ratio for DFS stock in the period of the last 12 months amounting to 1.99. The Price to Book ratio for the last quarter was 2.57, with the Price to Cash per share for the same quarter was set at 59.81. Price to Free Cash Flow for DFS in the course of the last twelve months was 4.35.

DFS stock trade performance evaluation

Discover Financial Services [DFS] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.00. With this latest performance, DFS shares gained by 21.30% in over the last four-week period, additionally plugging by 88.00% over the last 6 months – not to mention a drop of -8.38% 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 68.40, with the RSI for the last a single of trading hit 69.27, and the three-weeks RSI is set at 66.14 for Discover Financial Services [DFS]. The present Moving Average for the last 50 days of trading for this stock 63.49, while it was recorded at 75.82 for the last single week of trading, and 53.25 for the last 200 days.

Discover Financial Services [DFS]: An insightful look at the core 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 per share (EPS) analysis for Discover Financial Services [DFS] stock

With the latest financial reports released by the company, Discover Financial Services posted 2.25/share EPS, while the average EPS was predicted by analysts to be reported at 2.24/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 0.40%. 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%.

Discover Financial Services [DFS]: Insider Ownership positions

There are presently around $20,268 million, or 87.70% of DFS stock, in the hands of institutional investors. The top three institutional holders of DFS stocks are: VANGUARD GROUP INC with ownership of 34,002,031, which is approximately 12.933% of the company’s market cap and around 0.20% of the total institutional ownership; FMR LLC, holding 22,456,190 shares of the stock with an approximate value of $1.73 billion in DFS stocks shares; and BLACKROCK INC., currently with $1.56 billion in DFS stock with ownership of nearly -2.934% of the company’s market capitalization.

Positions in Discover Financial Services stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 301 institutional holders increased their position in Discover Financial Services [NYSE:DFS] by around 30,053,981 shares. Additionally, 402 investors decreased positions by around 25,703,292 shares, while 131 investors held positions by with 207,122,811 shares. The mentioned changes placed institutional holdings at 262,880,084 shares, according to the latest SEC report filing. DFS stock had 93 new institutional investments in for a total of 9,577,953 shares, while 95 institutional investors sold positions of 5,378,307 shares during the same period.

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