Discover Financial Services (NYSE: DFS) has seen a rise in its stock price by 4.35 in relation to its previous close of 189.26. However, the company has experienced a 9.21% gain in its stock price over the last five trading sessions. zacks.com reported 2025-01-22 that While the top- and bottom-line numbers for Discover (DFS) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Is It Worth Investing in Discover Financial Services (NYSE: DFS) Right Now?
The price-to-earnings ratio for Discover Financial Services (NYSE: DFS) is 17.29x, which is above its average ratio. Moreover, the 36-month beta value for DFS is 1.45. Analysts have varying opinions on the stock, with 5 analysts rating it as a “buy,” 2 as “overweight,” 12 as “hold,” and 0 as “sell.”
The public float for DFS is 249.94M and currently, short sellers hold a 1.19% of that float. On January 23, 2025, DFS’s average trading volume was 1.63M shares.
DFS’s Market Performance
DFS stock saw an increase of 9.21% in the past week, with a monthly gain of 17.38% and a quarterly increase of 32.84%. The volatility ratio for the week is 2.73%, and the volatility levels for the last 30 days are 2.47% for Discover Financial Services (DFS). The simple moving average for the last 20 days is 10.43% for DFS stock, with a simple moving average of 37.09% for the last 200 days.
Analysts’ Opinion of DFS
Many brokerage firms have already submitted their reports for DFS stocks, with UBS repeating the rating for DFS by listing it as a “Buy.” The predicted price for DFS in the upcoming period, according to UBS is $239 based on the research report published on January 13, 2025 of the current year 2025.
Barclays, on the other hand, stated in their research note that they expect to see DFS reach a price target of $186, previously predicting the price at $137. The rating they have provided for DFS stocks is “Overweight” according to the report published on January 06th, 2025.
DFS Trading at 11.26% from the 50-Day Moving Average
After a stumble in the market that brought DFS to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 3.88% of gains for the given period.
Volatility was left at 2.47%, however, over the last 30 days, the volatility rate increased by 2.73%, as shares surge +16.68% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +8.19% upper at present.
During the last 5 trading sessions, DFS rose by +9.21%, which changed the moving average for the period of 200-days by +58.00% in comparison to the 20-day moving average, which settled at $178.85. In addition, Discover Financial Services saw 14.01% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at DFS starting from Greene John, who sale 35,191 shares at the price of $106.51 back on Jan 26 ’24. After this action, Greene John now owns 18,592 shares of Discover Financial Services, valued at $3,748,193 using the latest closing price.
Stock Fundamentals for DFS
Current profitability levels for the company are sitting at:
- 0.39 for the present operating margin
- 1.0 for the gross margin
The net margin for Discover Financial Services stands at 0.15. The total capital return value is set at 0.06. Equity return is now at value 18.68, with 1.98 for asset returns.
Based on Discover Financial Services (DFS), the company’s capital structure generated 0.51 points at debt to capital in total, while cash flow to debt ratio is standing at 0.4. The debt to equity ratio resting at 1.05. The interest coverage ratio of the stock is 2.63.
When we switch over and look at the enterprise to sales, we see a ratio of 2.71. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.93.
Conclusion
To wrap up, the performance of Discover Financial Services (DFS) has been better in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
