Is Discover Financial Stock a Good Investment?
Discover Financial Investment Advice | DFS |
- Examine Discover Financial's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Discover Financial's leadership team and their track record. Good management can help Discover Financial navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Finance space and any emerging trends that could impact Discover Financial's business and its evolving consumer preferences.
- Compare Discover Financial's performance and market position to its competitors. Analyze how Discover Financial is positioned in terms of product offerings, innovation, and market share.
- Check if Discover Financial pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Discover Financial's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Discover Financial Services stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Discover Financial Services is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Discover Financial Stock
Researching Discover Financial's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 86.0% of the company shares are held by institutions such as insurance companies. The book value of Discover Financial was currently reported as 68.77. The company recorded earning per share (EPS) of 12.42. Discover Financial last dividend was issued on the 21st of November 2024. The entity had 1:5 split on the January 31, 2014.
To determine if Discover Financial is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Discover Financial's research are outlined below:
| Discover Financial had very high historical volatility over the last 90 days | |
| Over 86.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: Democrats bash CapOne-Discover merger proposal |
Discover Financial uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Discover Financial Services. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Discover Financial's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 17th of April 2024 Upcoming Quarterly Report | View | |
| 17th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 15th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Discover Financial's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Discover Financial's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2009-12-17 | 2009-09-30 | 0.14 | 0.12 | -0.02 | 14 | ||
2007-12-20 | 2007-09-30 | 0.36 | 0.4 | 0.04 | 11 | ||
2008-06-26 | 2008-03-31 | 0.37 | 0.42 | 0.05 | 13 | ||
2010-09-20 | 2010-06-30 | 0.38 | 0.47 | 0.09 | 23 | ||
2008-03-19 | 2007-12-31 | 0.4 | 0.5 | 0.1 | 25 | ||
2009-06-18 | 2009-03-31 | -0.3 | -0.18 | 0.12 | 40 | ||
2010-03-16 | 2009-12-31 | -0.08 | -0.22 | -0.14 | 175 | ||
2016-01-27 | 2015-12-31 | 1.3 | 1.14 | -0.16 | 12 |
Know Discover Financial's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Discover Financial is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Discover Financial Services backward and forwards among themselves. Discover Financial's institutional investor refers to the entity that pools money to purchase Discover Financial's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Balyasny Asset Management Llc | 2024-09-30 | 2.6 M | Sessa Capital Im Lp | 2024-09-30 | 2.5 M | Amvescap Plc. | 2024-06-30 | 2.4 M | Northern Trust Corp | 2024-09-30 | 2.2 M | Legal & General Group Plc | 2024-06-30 | 2 M | Bank Of New York Mellon Corp | 2024-06-30 | 2 M | Capital Research & Mgmt Co - Division 3 | 2024-09-30 | 1.9 M | Millennium Management Llc | 2024-06-30 | 1.8 M | Goldman Sachs Group Inc | 2024-06-30 | 1.8 M | Vanguard Group Inc | 2024-09-30 | 30.8 M | Capital World Investors | 2024-09-30 | 20.9 M |
Discover Financial's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 45.85 B.Market Cap |
|
Discover Financial's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.02 | |
| Return On Capital Employed | 0.03 | 0.03 | |
| Return On Assets | 0.02 | 0.02 | |
| Return On Equity | 0.20 | 0.16 |
Determining Discover Financial's profitability involves analyzing its financial statements and using various financial metrics to determine if Discover Financial is a good buy. For example, gross profit margin measures Discover Financial's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Discover Financial's profitability and make more informed investment decisions.
Discover Financial's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Discover Financial's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Discover Financial Services. Check Discover Financial's Beneish M Score to see the likelihood of Discover Financial's management manipulating its earnings.
Evaluate Discover Financial's management efficiency
Discover Financial has Return on Asset of 0.0216 % which means that on every $100 spent on assets, it made $0.0216 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.2026 %, implying that it generated $0.2026 on every 100 dollars invested. Discover Financial's management efficiency ratios could be used to measure how well Discover Financial manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Discover Financial's Return On Tangible Assets are comparatively stable compared to the past year. Return On Assets is likely to gain to 0.02 in 2024, whereas Return On Capital Employed is likely to drop 0.03 in 2024. At this time, Discover Financial's Return On Assets are comparatively stable compared to the past year.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 58.38 | 41.96 | |
| Tangible Book Value Per Share | 57.37 | 41.21 | |
| Enterprise Value Over EBITDA | 9.52 | 6.54 | |
| Price Book Value Ratio | 1.93 | 1.72 | |
| Enterprise Value Multiple | 9.52 | 6.54 | |
| Price Fair Value | 1.93 | 1.72 | |
| Enterprise Value | 16.2 B | 14.4 B |
The strategic decisions made by Discover Financial management significantly impact its financial stability and market performance. Evaluating these factors helps determine whether the stock is a worthwhile investment.
Dividend Yield 0.0153 | Forward Dividend Yield 0.0153 | Forward Dividend Rate 2.8 | Beta 1.402 |
Basic technical analysis of Discover Stock
As of the 28th of November, Discover Financial shows the Mean Deviation of 1.98, coefficient of variation of 599.23, and Downside Deviation of 1.79. Discover Financial technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Please confirm Discover Financial variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Discover Financial is priced favorably, providing market reflects its regular price of 182.56 per share. Given that Discover Financial has jensen alpha of 0.1552, we urge you to verify Discover Financial Services's prevailing market performance to make sure the company can sustain itself at a future point.Discover Financial's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Discover Financial insiders, such as employees or executives, is commonly permitted as long as it does not rely on Discover Financial's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Discover Financial insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Discover Financial's Outstanding Corporate Bonds
Discover Financial issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Discover Financial uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Discover bonds can be classified according to their maturity, which is the date when Discover Financial Services has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Discover Financial's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Discover Financial's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1352 | |||
| Market Risk Adjusted Performance | 0.1805 | |||
| Mean Deviation | 1.98 | |||
| Semi Deviation | 1.47 | |||
| Downside Deviation | 1.79 | |||
| Coefficient Of Variation | 599.23 | |||
| Standard Deviation | 3.23 | |||
| Variance | 10.41 | |||
| Information Ratio | 0.1265 | |||
| Jensen Alpha | 0.1552 | |||
| Total Risk Alpha | 0.0202 | |||
| Sortino Ratio | 0.2278 | |||
| Treynor Ratio | 0.1705 | |||
| Maximum Drawdown | 24.36 | |||
| Value At Risk | (2.77) | |||
| Potential Upside | 4.04 | |||
| Downside Variance | 3.21 | |||
| Semi Variance | 2.15 | |||
| Expected Short fall | (2.48) | |||
| Skewness | 3.61 | |||
| Kurtosis | 20.83 |
| Risk Adjusted Performance | 0.1352 | |||
| Market Risk Adjusted Performance | 0.1805 | |||
| Mean Deviation | 1.98 | |||
| Semi Deviation | 1.47 | |||
| Downside Deviation | 1.79 | |||
| Coefficient Of Variation | 599.23 | |||
| Standard Deviation | 3.23 | |||
| Variance | 10.41 | |||
| Information Ratio | 0.1265 | |||
| Jensen Alpha | 0.1552 | |||
| Total Risk Alpha | 0.0202 | |||
| Sortino Ratio | 0.2278 | |||
| Treynor Ratio | 0.1705 | |||
| Maximum Drawdown | 24.36 | |||
| Value At Risk | (2.77) | |||
| Potential Upside | 4.04 | |||
| Downside Variance | 3.21 | |||
| Semi Variance | 2.15 | |||
| Expected Short fall | (2.48) | |||
| Skewness | 3.61 | |||
| Kurtosis | 20.83 |
Consider Discover Financial's intraday indicators
Discover Financial intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Discover Financial stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 18533.64 | |||
| Daily Balance Of Power | (0.02) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 182.81 | |||
| Day Typical Price | 182.73 | |||
| Price Action Indicator | (0.28) | |||
| Period Momentum Indicator | (0.06) |
Discover Financial Corporate Filings
8K | 25th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 13th of November 2024 Other Reports | ViewVerify | |
| 12th of November 2024 Other Reports | ViewVerify | |
F4 | 5th of August 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Discover Stock media impact
Far too much social signal, news, headlines, and media speculation about Discover Financial that are available to investors today. That information is available publicly through Discover media outlets and privately through word of mouth or via Discover internal channels. However, regardless of the origin, that massive amount of Discover data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Discover Financial news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Discover Financial relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Discover Financial's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Discover Financial alpha.
Discover Financial Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Discover Financial can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Discover Financial Historical Investor Sentiment
Investor biases related to Discover Financial's public news can be used to forecast risks associated with an investment in Discover. The trend in average sentiment can be used to explain how an investor holding Discover can time the market purely based on public headlines and social activities around Discover Financial Services. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Discover Financial's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Discover Financial and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Discover Financial news discussions. The higher the estimate score, the more favorable the investor's outlook on Discover Financial.
Discover Financial Corporate Directors
| Gregory Case | Independent Director | Profile | |
| Mary Bush | Independent Director | Profile | |
| Jennifer Wong | Independent Director | Profile | |
| Joseph Eazor | Independent Director | Profile |
Additional Tools for Discover Stock Analysis
When running Discover Financial's price analysis, check to measure Discover Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Discover Financial is operating at the current time. Most of Discover Financial's value examination focuses on studying past and present price action to predict the probability of Discover Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Discover Financial's price. Additionally, you may evaluate how the addition of Discover Financial to your portfolios can decrease your overall portfolio volatility.