Discover Financial Services (DFS): Today's Featured Financial Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Discover Financial Services (DFS) pushed the Financial Services industry higher today making it today's featured financial services winner. The industry as a whole closed the day up 1.1%. By the end of trading, Discover Financial Services rose 70 cents (1.8%) to $39.28 on average volume. Throughout the day, 4.1 million shares of Discover Financial Services exchanged hands as compared to its average daily volume of 5.2 million shares. The stock ranged in a price between $38.64-$39.42 after having opened the day at $38.80 as compared to the previous trading day's close of $38.58. Other companies within the Financial Services industry that increased today were: Consumer Portfolio Services (CPSS), up 16.2%, US Global Investors (GROW), up 9.8%, Security National Financial Corporation (SNFCA), up 6.3%, and Siebert Financial Corporation (SIEB), up 6.1%.

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Discover Financial Services, a bank holding company, offers direct banking and payment services in the United States. It operates in two segments, Direct Banking and Payment Services. Discover Financial Services has a market cap of $19.3 billion and is part of the financial sector. The company has a P/E ratio of 8.7, below the S&P 500 P/E ratio of 17.7. Shares are up 0.6% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate Discover Financial Services a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Discover Financial Services as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial services industry could consider Financial Select Sector SPDR (XLF) while those bearish on the financial services industry could consider Proshares Short Financials (SEF).

• Find other investment ideas from our top rated ETFs lists.

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For more information on Discover Financial Services click any of the following:

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• Discover Financial Services Income Statement